Dallas, TX, February 10, 2010 -- When money is tight, consumers may turn to advance fee loan offers that promise loans but require fees to be paid up front. The BBB warns that consumers responding to such offers may receive nothing at all or get only referrals to lenders who might make a loan.
Consumers from California to New York are complaining to the Better Business Bureau serving Dallas and Northeast Texas about Espirit de Corpe, Inc., 14902 Preston Rd., #404-1062, Dallas. The complaints are concerning non-receipt of promised loans, unauthorized charges, and difficulties in cancelling and obtaining refunds. The business has answered some complaints; however, some complaints are unanswered.
Espirit de Corpe has a BBB Rating of F on a scale from A+ to F.
Reasons for the rating include:
• BBB concerns with the industry in which this business operates;
• 16 complaints filed against the business;
• Failure to respond to 3 complaints filed against the business; and
• 3 complaints filed against the business that were not resolved.
According to the complaints, Espirit de Corpe advertises in free classified newspapers and also sends letters promising, “your money will show up in your account the next business day.” Complaints say that no loans are received, just referrals to possible loan sources. Complaints are from California, Colorado, Florida, Illinois, Louisiana, Missouri, North Carolina, New York, Virginia, and Texas.
A man in Texas complained in November, 2009, that he “responded to an ad in a local free classified newspaper. The ad stated that if you paid $19.95 for membership you could borrow up to $2,500 … $19.95 is being deducted from my checking account every 3-4 days … I want Espirit de Corpe to honor their advertisement and forward the $1,900 or replace the money that they have taken out of my account.” The business replied that “we cancelled his account.” The customer responded that he had to close out his checking account to stop the withdrawals. Espirit de Corpe replied: “No one told him that if he pay $20 and we would give him a loan for $2000 …” This complaint is unresolved.
In April, 2009, a Texas man said he received a letter “that they could loan up to $2,500." He wired $49.95 as requested and received three lenders to call. The customer says he “tried the lenders that he gave and nothing happened.” He says the business told him that he “didn’t work the system and that its people like us that they weed out during this process.” The business responded that the customer “did not complete the program so there is not issue at all …” and “no one told him that we give a refund if you are not satisfied.” This complaint is unresolved.
The Web site for the business says it offers “monthly updated information on the top companies that offers the best service in different categories we offer!!!” The categories are payday loans, insurance, car loans, personal loans, and credit cards. The “basic membership plan” is $19.95 a month.
Some complaints allege difficulties in cancelling the service, or unauthorized charges to customers’ accounts after cancelling.
A man in Louisiana complained in July, 2008, that he told the business that he wanted to cancel. “He said fine it would go into effect immediately and my bank account would not be changed $19.95 anymore. Well for the past three months my checking account has been charged $19.95 every month.” Espirit de Corpe replied: “This person signed an application to be a member … so if you was charge you must send a cancel notice in writing so we can take you out of the system.”
The Better Business Bureau and the Federal Trade Commission (FTC) warn against these red flags of advance fee loan schemes:
A lender who isn’t interested in your credit history. Ads that make claims like “We don’t care about your past. You deserve a loan” or even “No hassle — guaranteed” often indicate a scam.
Guaranteed loans. Legitimate lenders generally evaluate an application before they guarantee firm offers of credit — even to creditworthy consumers.
Fees that are not disclosed clearly or prominently. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you’re told it’s for “insurance,” “processing,” or just “paperwork.” Legitimate lenders often charge application, appraisal, or credit report fees. These fees are disclosed clearly and prominently; the fees are taken from the amount borrowed; and the fees usually are paid to the lender or broker after the loan is approved.
A loan that is offered by phone. It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
To check out businesses with the BBB, start at
www.bbb.org. Complaints on advance fee loan offers may be reported to the Better Business Bureau and to the Federal Trade Commission,
www.ftc.gov.
About BBB serving Dallas and Northeast Texas
The Better Business Bureau of Metropolitan Dallas, Inc., is an independent, non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization's standards of ethical business behavior. BBB services include BBB Reliability Reports™ on businesses, complaint resolution services, advertising review, and information on topics affecting marketplace trust. The BBB serving Dallas and Northeast Texas was founded in 1920 and is one of 124 BBBs serving the U.S. and Canada. The BBB System evaluates and monitors more than 4 million local and national businesses and charities. Please visit www.bbb.org for more information.###