CONTACT: Susan Bach, Director of Communications
PHONE: 414- 847- 6085
FAX: 414-302- 0355
E-MAIL: sbach@wisconsin.bbb.org
December 2, 2010, Milwaukee, Wis. –The Wisconsin Better Business Bureau is warning consumers to stay away from two companies that are scamming consumers seeking loans.
These companies, Pillington Investments, allegedly located at 6737 W. Washington St. in Milwaukee, and Crowntech Consulting Group, allegedly located at 805 W. Michigan Street in Milwaukee, have scammed nearly $10,000 from consumers seeking loans. The Wisconsin BBB could not find either of these companies listed at the above addresses.
The Wisconsin BBB has received three complaints in two weeks against Pillington Investments. These complaints allege that the company has approved loans for the applicants, and has taken money from consumers in advance for a “collateral payment.” Even though consumers pay these fees, they have not received their loans.
Neither company is registered with the Wisconsin Department of Financial Institutions, which is required by law. In addition, it is illegal to require payments in advance of a promised loan, like the collateral payments these two companies are requesting.
A woman from Trevor, Wisconsin applied for a loan in October from Pillington and wired approximately $1,400 to the company. She has yet to receive her loan or a refund of the money she paid upfront.
“I was asked to pay money upfront, which I know I shouldn’t have,” she said. She has had trouble contacting the company about the status of her loan.
“When I do [get through to Pillington Investments, they] always have some excuse as to why the money is not there,” she said in her complaint. “I know I should have followed my instincts and not have allowed this to happen, but I really needed the loan and thought I was doing the right thing.”
Victims who have filed complaints with either Pillington or Crowntech have come from North Carolina, Texas, Georgia, Washington, Delaware and Massachusetts.
“People are especially vulnerable this time of year to loan scams,” said Randall Hoth, President/CEO of the Wisconsin BBB. “They need a little extra money for the holidays or to pay end-of-the-year expenses, and they fall victim to these scammers who promise they can have their loan within 48 hours.”
The Wisconsin BBB offers these tips to prevent advanced fee loan scams:
* Do not pay money up-front for a loan. It’s against the law! If you apply for a real estate loan, it is accepted and common practice for lenders to request payment for a credit report or appraisal. However, legitimate lenders never ask you to pay for processing your application or for a “collateral” payment.
* Never give your credit card account number, bank account information, or Social Security number over the telephone or Internet unless you are familiar with the company and know why the information is necessary.
* Legitimate lenders never “guarantee” or say that you are likely to get a loan or a credit card before you apply, especially if you have bad credit, no credit, or a bankruptcy.
* Be wary of searching the internet using such terms as “bad credit loans,” which may lead you to fraudulent websites. Look for the BBB’s online reliability seal, which can help you weed out the good websites from the bad ones. For more information or further inquiries, please contact the Wisconsin BBB at http://www.wisconsin.bbb.org or 414-847-6000 (metro Milwaukee), (920)-734-4352 (Appleton) or 1-800-273-1002 (elsewhere in Wisconsin).
The Better Business Bureau serving Wisconsin is a nonprofit organization that brings 70 years of experience in fostering ethical business practices; providing dispute resolution alternatives; offering consumer and business education; and promoting customer service excellence. Our Reliability Reports provide the general public with critical information about companies both locally and nationally. To check on a company or charity visit http://www.wisconsin.bbb.org or call 1-800-273-1002.
