Complaint Review: Avenue Financial Group - Garden City New York

This report is being written as the result of a financial fraud that was committed against me by Avenue Financial Group (AFG) which may or may not exist but the address they provide on their letterhead is 595 Stewart Avenue, Garden City, NY 11530. The telephone number that was used during all communications is 866.403.6662 and the fax number that was used is 516.977.1030. Their website is www.avenuefinancial.net. The names of the two people that I spoke with are Matthew Price (x274) and Dennis Crown (x0)

At the beginning of December 2008 I conducted an online search for a long term personal loan. I came across the website at Prime-lenders.net. I read all about it and it seemed no different from any other lending site. At this point I decided to apply for a loan thinking no way would I get approved anyway, but what did I have to lose. I would soon find out. The application was a standard application, nothing out of the ordinary.

I was contacted by Matthew Price who stated that I had been approved for a $50,000 loan through Avenue Financial Group based out of New York. Matthew explained that because this was a secured loan that I would need to provide collateral for insurance purposes as stated in the faxed agreement. The collateral required consisted of and was equal to 6 monthly payments totaling $2519.64 and since I was making such a large payment upfront that I would not need to begin repaying the loan until June of 2009. I reviewed the documents numerous times and even checked out their website. Everything appeared to be completely legitimate. Although, I know right now someone is saying "why would you send money to get money?" I should have known it was a rip-off. Well I've been in lending 18 years myself and I know that with some "collateral" based loans you do have to put a down payment. I did all my research, I check-out the rip-off report and there was nothing being reported at that time. I checked them out with the Better Business Bureau, no reports. Had my Lawyer check out the contract, it all seemed on the up & up and if the loan did go south, it is in the contract that my money would be returned.

On December 16, 2008 I contacted Matthew Price to inform him that I had the payment required to secure the loan. Matt explained that the lender was located in Canada and that I needed to wire the funds directly to them. I was told to go to Wal-Mart and wire money through Money Gram. I was to send the monies to Greta Wilson in Calgary, Canada. Because the fee was going to be $50.20 Matt told me to simply send $2,510 and the remaining monies would be credited to my loan. I followed all of these instructions and contacted Matt to provide him with the reference number. Matt stated that the $50,000 loan would be directly deposited into my account on December 17, 2008.

On the morning of December 17, 2009 I received a phone message from Dennis Crown who identified himself as the customer service manager of AFG. Dennis stated in this message that there had been a slight problem with my loan and needed to contact him immediately.

Upon contacting Dennis, I learned that the lender after reassessing my loan was requiring a larger security deposit to secure the loan. My other option was to receive a full refund. He never indicated that my refund would not be available until January 10. He implied that if I didn't send the additional $2510, he would simply refund my money. I was at that point very leary, but again being in the lending business, I have been in scenerios where a larger deposit was required or other documentation was needed etc. I contacted Matt Price who appeared to be completely unaware of the situation and claimed that he had never heard of this happening ever. Of course, he was very apologetic and "felt so bad". He stated that Dennis, although a very abrassive man, was a fair man and would do his best to help us, since again they "felt so bad". I know at this point I must sound like a complete idiot, but I borrowed the additional collateral to send once again to Greta Wilson in Canada. I needed this money. It's Christmas and I have 3 children and I'm trying to save my home, I had to take a chance....I spoke to Dennis and asked him what my chances were that this loan would be re-assessed" again and I would be asked for more money. Of, course he tried to assure me that this was highly unusual and has never happed before except for maybe once or twice in his whole 15 years with this company.

They were also very upset about this siuation and what it was doing to their reputation, when I told him this sounded like a total "bait & switch" siuation he was highly offended.

Neverthe less, I asked him for a guarantee in writing that this would not happen again and he said he'd get back to me. Of course he did, and faxed to me a irrevocable guarantee for AFG signed of course by their supposid CEO Phillip J. Howard, guarranteeing that I would receive my $50,000 by the next business day. Once again, I wired the $2510 to Greta Wilson in Calgary, Canada through a Money Gram at Wal-Mart.

The following day I waited for my wire. I had to borrow the additional $2510 from a friend and I promised to pay it back as soon as my wire came through. Dennis had assured me my money would be there by 5pm. I waited and waited... at about 3pm my time (PST) I phoned Dennis to see what was going on with my wire and he then informed me that he had been franticlly working on my file all day, because once again there had been a problem, BUT he had good news for me. Through his efforts he had secured me a loan with a new lender and since they had such a great relationship with this lender they were willing to lend me $100,000! for the same payment and interest rate only of course it would be for 30 years and not 15 years. As far as he was concerned he was a hero and I should be so grateful. The catch was that I would have to send ANOTHER payment of $5000 to this new lender. I was suppose to be greatful for that too because Dennis had been working on this deal for me all day because they were so upset that this was happening to me and he informed me that they of course would be filing legal action against this lender because they were also victims in this whole mess. So, if I would just send the $5000 everything would be fine now and I would have my $100,000 deposit next business day. I informed him that I didn't want $100,000, so he told me to just take it and then take $50,000 and pay it back right away to the loan and then I would only owe $50,000. I explained again that this was a little much for me and NOW I know I was riped off so forget it.

With his condesending attitude he acted like he was the victim after he had been working on getting me this fabulous offer, I was going to be so ungrateful? He was now a little upset with me.

I told him no and if they were such a legitamite company then they should front the $5000 for me, since they "feel so bad" and are so positive that the $100,000 will be deposited then, front the money and I'll send to you when I get it. Needless to say that wasn't possible so I demanded a refund in the amount of $5020. He informed me that a refund would be made on January 10, 2009. I have spoken with Matthew Price a few times since then, he has never dodged my calls and he has given me some valuable information. Whether he is fully part of this scam, I'm not sure yet, but I do fortunately have some friends in law enforcement in the New york area and they will be helping me find out if this company in fact has an office and are doing business in New York. I will definately update this report with that information.

I have spoken to my lawyer, which in my case also has an office in New York, so that will be very helpful if and when I have to file a law suit, since according to their contract, everything is governed by the state of New York. At this point I can't say legally if I have been ripped-off, I have to wait until after January 10th. January 10 does happen to be a Saturday, so I'm sure their excuse would be I have to wait until January 12th. If I don't receive my money, then I can officially say I have been ripped-off. I will aslo update that information. I don't anticipate receiving any of my money back, but I do intend to persue this matter with full legal action. If we could get a class-action law suit going that would be better, but I am prepared to persue this alone if need be.

For those of you who have made comments that the people being scammed are stupid, thank God for you that you have never been in our shoes and I hope you never are. I have been in lending like I said for 18 years and I might have made the same "I'm so superior" comments a few years ago myself, but with my business plumaging in the last 2 years and being heavily in debt, ruined credit and losing everything I own and on top of all that to have to explain to my wife & 3 kids why "Santa" won't be coming this year and that by January we will also be losing our family home, you do desperate things that prior to all this you had the luxury to not ever have to consider.

I still hang on to hope that these people will refund my money, but I'm not holding my breath. If there is an attorney in the New York area that has a conscience and a big check book, I would be willing to speak to you about taking these people down. Lack of money on the victims part is why these people get away with this. Someone in the legal areana needs to step up and "pay it forward" and help the victims of these ruthless individuals.

Jason

Los Angeles, California

U.S.A.