Complaint Review: Discount Capital Corp.

Applied for a loan; James Hagan provided documents, dated March 22, 2007, stating loan amount would be $750,000.00 under a Sale Lease back of various pieces of equipment for a term of 60 months at mos. payments of $18,493.15 and requested first payment of $18,493.15 be sent. April 18, 2007, "Patti Randolph" faxed a letter requesting a list of "what the money is to be used for and what needs to be paid out and how much". May 10, 2007, Patti Randolph sends a letter stating that she was "expecting an Engagement" letter on that date but it didn't come and she'd be gone the next day. May 16, 2007, I faxed a letter, stating that since the monies were cashed, no one will return calls and was informed by Patti Randolph that the loan amount was changed from $750,000 to $500,000 and that an additional $7,500 is required for an appraisal of equipment. Demand for return of the $18,493.15 is made. May 16, 2007, Jim Hagan sends a fax stating approval, pending verification of equipment and directs signing a "Loeb Equipment & Appraisal Company's" proposal to be signed and and sent a check in the amount of $7500 and that the exact loan amount will be determined upon completion of the appraisal, and "at this time, no refund will be issued". July 16, 2007 - an attorney is hired to to write a letter of demand for monies to be returned - no response was received to the letter. The attorney followed up with a phone call for which Jim Hagan told him (attorney) that I was not going to get any money back and I would have to sue him (Hagan). August, September - weekly calls made, to no avail or returned call with loan or refund status. October 1, 2007 - I make make contact via telephone with Jim Hagen, who says he will call back. October 2, 2007 - message left at 3:32 p.m. and fax Jim Hagen demanding monies back by October 4, 2007. October 3, 2007 fax again demanding monies back by October 4, 2007. Jim Hagen called and spoke with my employee, stating that I was not going to get any money back because I had been approved for a loan. October 11, a fax is received from Patti Randolph requesting "interim financials". October 12, 2007, Patti Randolph faxes letter stating that they have Feb. financials - that they need them in an iterim not more than 60 days old, so I again send updated financials. No response. November 12, 2007 at 12:30 p.m. I call and speak with Patti Randolph who said she didn't have any information and would call back. No call. November 14, 2007 call and again speak to Patti Randolph, requesting to speak directly to Jim Hagan, for which Patti said he was out of the office and that she still couldn't give any information on the loan. As of today's date, November 27, 2007, no response, no loan, no refund of my monies have been received. Now how can they hold the first payment for a loan that doesn't exist?

Redding
Henderson, Nevada
U.S.A.