- Report: #652375
Complaint Review: Capstar Capital Corp - Centerport New York
Reported By:
Full Spectrum -
Owings Mills, Maryland, United States of America
Submitted:
Updated:
-
Author Not Confirmed
Why?
Capstar Capital Corp
100 Centershore Road Centerport, 11721 New York, United States of America
Phone:
Web:
www.capstarcapital.com
Categories:
Business Rating:
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Capstar Capital Corp Capstar Capital kept a good faith deposit of $18,000 from a client of mine. Stating that the entire deposit was forfeited for not submitting financial information on a timely basis. This is a highly u Centerport, New York
I am a CPA and commercial loan broker in Maryland. My client applied to Capstar Capital for equipment financing. Capstar issued a proposal letter offering financing subject to underwriting. The proposal letter required a $18,000 good faith deposit to accompany it in order for Capstar to underwrite the loan request. This deposit was to be refundable, less mitigating damages if not approved. The proposal letter required certain information be provided in order to underwrite. No mention was made as to the specific time when the information was due. When the information was not received within a few weeks, CapStar Capital's Ray Regis stated that the entire $18,000 deposit was to be forfeited to CapStar Capital. The deposit was never returned. The loan never approved.
This is a highly unethical practice for any commercial lender. Requiring a good faith deposit to accompany a signed proposal is a standard practice. Making that deposit subject to foreiture due to the untimely submission of financial information is tantamount to stealing.
