Complaint Review: FIRST STAR CREDIT UNION - Manhattan New York

At first glance, the website, firststarlendingservices.net, is quite appealing, & even professional, but don't be fooled. They are a bunch of crooks trying to separate you from your hard earned money.

Laurie James at First Star Credit Union, professional, charismatic, patient, & knowledgeable. If she decided to do her job legitimately, she would definitely succeed.

On August, 25, 2009, I was almost scammed out of $988.08, supposedly for a secured loan of $8000 I was approved for. But thankfully, to this website & Google, I found other complaints about them ripping people off.

So my advice to you people looking for a loan, but don't have adequate credit or collateral, so your homework before sending anyone money, especially through wire transfer. Chances are if you do, you will never see your money again or the loan that was promised to you.

Below is one of the articles I found on my google.com search & the copy of the loan agreement she E-mailed to me:

Home > Publications > News/Press Releases > Current Year Releases

FOR IMMEDIATE RELEASE

 Wednesday, April 15, 2009

FIRSTSTAR Credit Union - Unauthorized and Possibly Fraudulent Credit Union Advertising in Georgia.

 It has come to the Departments attention that an entity called FIRSTSTAR Credit Union is advertising itself in Georgia as a lender and provider of financial services.

 The Department has no record of this entity as a legitimate credit union or otherwise. Upon inquiry from the Department, the National Credit Union Administration (NCUA) also indicated that there is no federal credit union chartered or authorized to conduct business under the name FIRSTSTAR Credit Union.

 On April 14, 2009, the Department contacted the entity advertising itself as FIRSTSTAR Credit Union at the number provided in its advertisement (1-888-880-1790). An individual identifying himself as an employee stated that the entity was a credit union located in York, Pennsylvania. However, an April 9, 2009, Consumer Alert issued by the Pennsylvania Department of Banking warned about an apparent advance fee loan scam under the names First Star Lending Services and First Star Credit Union which alert can be found at www.firststarlendingservices.com .

Also on April 9, 2009, Michigans Office of Financial and Insurance Regulation ordered an entity claiming to be a Pennsylvania-based credit union called Firststar Credit Union to cease and desist from doing business in that state. The public is strongly cautioned against doing business with this unauthorized and possibly fraudulent entity.

A list of Georgia federally insured state-chartered credit unions may be found on the Departments website - https://dbfweb.dbf.state.ga.us/WebCUData.html

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FIRST STAR LENDING

3961 10th Ave. Manhattan, NY 10034

Loan Agreement & Cost of Borrowing Disclosure Statement

We are pleased to inform you that your application for a fixed rate loan has been approved. This Statement sets out the amount of money we are lending you, the cost of borrowing and the terms and conditions of the Loan. We are required to provide this information at the same time that you sign your Promissory Note.

Please note that your loan is payable on the 1st of each month. However, until payment is made, we will permit you to make installment payments as set out below. Your signature on this Statement shows that you have received it. Your personal banker will request a signed copy of this Statement when you sign your Promissory Note. Please keep a copy of this Statement to refer to later.

_____________________________________________ In this Statement, we, us and our means FIRST STAR LENDING; and you and your means the borrowers who sign this Statement and the guarantors and covenanters, if any, who sign this Statement; and Loan means the loan to be advanced pursuant to the Promissory Note you will sign together with this Statement. Clients Name ****** Principal amount borrowed $8,000.00 this is the amount of your Loan.

Thank you for choosing FIRST STAR LENDING to act on your behalf in finding an appropriate solution for you and your family. At FIRST STAR LENDING we are committed to helping our thousands of customers achieve their financial goals since 1980. Our Vision is to win customer loyalty through our excellent service and our knowledgeable oriented staff.

This document verifies that ******* will receive a Personal Loan of $8,000.00 once the premium payment of $988.08 is paid to secure the loan of the 36-month term, which is a 3-year term. Once ******* pays the premium payment of $988.08 of the 36-month term, the premium will be applied to the first 4 months premium payment.

****** will be responsible for the remaining loan amount plus any interest incurred all payments will be made to FIRST STAR LENDING. Policy Loan Term Interest Rate Monthly Payment Premium Payment 36 months 3 years 7% $247.02 $988.08 The final processing of your loan from this point will take approximately 2-4 business days results may vary. In order to make this process as smooth and easy as possible please read the following options and indicate your preference.

Your funds will be allocated to you in one of the following two ways.

Fed-x, or via courier 24-48 hrs

Direct deposit into your account, 2 - 4 hours.

Via Courier, please fill out the following information (for accuracy please prints clearly). Name: (Mr. /Mrs. /Ms.) _________________-______________ Address: _________________ Home Telephone Number: _______________________ Work Telephone Number: ___________________________ Direct Deposit; please fill out the following information (for accuracy please prints clearly). Bank Name: ________________________ Bank Address: ___________________________ Bank Routing Number: ____________________________ Bank Telephone Number: ____________________________ Bank Account Number: _________ Type of Account (checking/savings): ___________________________

Regular Loan Payment

Amount Monthly/ Semi Monthly/ Bi-weekly Weekly payment Amount Total payments Loan in default $247.02

Monthly Principal Interest and Loan Protector Insurance cost per payment. This is your regular loan payment amount. The total amount of all payments of principal and interest for the term, based on the interest rate is 7%.

The total amount of all payments includes your total insurance cost for the term. Payment Schedule Monthly: every month on the 1st of each month. If a payment is due on a Saturday, Sunday or other non-business day, your payment will be processed on the next following business day and interest will continue to accrue.

Calling the loan and charges Where we have agreed to accept installment payments on your loan, the phrase loan in default includes when you are late making a regular Loan payment, when you do not make a scheduled payment, or if you fail to observe any of the terms or conditions of the Loan Contract.

Were we have demanded re-payment in full of the loan, the term Loan In Default means that you have not repaid to us all amounts owing on demand. If a regularly scheduled Loan payment is late over 150 days, or if we demand repayment of your Loan, you owe interest for each day you are late you pay interest on both the principal and the interest portion of the payment that is late (if date is set for payment on demand).

When we receive a payment, we will deduct the interest owing on the principal amount first, before any part of the payment is applied to reducing the principal amount. We may also decide to apply the late payment to other amounts you may owe, however until demand is made you will pay monthly installments.

Charges

NSF payments Prepayments Transfers

If your Loan is in default for any reason, you will have to pay any or all of these amounts: The missed Loan payment Interest on the principal and interest amount of the missed Loan payment, as described in this section. Any reasonable costs, including legal fees that we incur to collect or attempt to collect the amount owing Any amount charged to you according to the Loan Contract. The fixed interest rate charged to you according to the Loan Contract.

If a financial institution returns the cheque or refuses the pre-authorized debit you used to make a Loan payment, we will charge you the amount of any fee imposed on us by that financial institution.

How loans can be paid off early

When we lend you money, we expect you to pay it back on demand, or, as long as we permit, according to the payment schedule in this Statement. You may however pay off all or part of your Loan early. If all Loan payments are up to date, you can pay off some or the entire principal amount owing at any time. When you make a prepayment on your Loan, all interest owing up to and including the date of prepayment must also be paid immediately.

Assignment

You cannot transfer your rights under this Statement to a third party. You acknowledge that we may transfer our rights in your promissory note to a third party. You agree that we may give any information relating to your Loan application, Promissory Note or this Statement, including your financial information to a proposed transferee.

Cancellation

We may withdraw this statement and refuse to lend you money if you do not meet the criteria set by FIRST STAR LENDING to borrow money.

FIRST STAR LENDING, loan coverage was introduced into the financial loan industry as a method to protect the lender(s) from the occurrence of default upon the loan agreement. This safeguard against loan default protects the lender in the event that the loan recipient forfeits on the Conditions of the Agreement. The loan recipient is protected from specified/uncertainties that may prohibit the appropriate payment of the loan as specified in the loan agreement. Has significantly altered the way loans can be granted and somewhat leveled the playing field in terms of following increased opportunities for individuals to compete effectively in todays national and global economy. This information is to inform you that all funds are 100% guarantee once we receive signed documents along with premium payment. FIRST STAR LENDING reserves the right to request an insurance policy/ allocation fee at any time during the loan term due to high-risk clients.

Guarantee This document verifies that ***** has been granted a loan through FIRST STAR LENDING of $8,000.00 for a 3 year term at a payment of $247.02USD per month, amortized at a fixed interest rate of 7%. The premium Payment of $988.08 is deducted from your total payback.

On behalf of FIRST STAR LENDING, I would like to take this opportunity to welcome you as the newest client to the family. Our service consultants will be responsible for handling all aspects of your account with us once your loan requirements have been satisfied. Again thank you for your valued business. I have read and understood the agreement with all the conditions pertaining to the terms and fees. Date: X________________________________ X _____________________________ Clients Name Clients Name Borrower Co-Borrower Date: Date: _____________________ X______________________________ X _____________________________ Borrowers Signature Co-Borrowers Signature Date: _________________________ Date: _______________________ (M/D/Y) (M/D/Y)

Sincerely,

Nathaniel Francis, President 

Phillip Collins,Chief Executive Officer   

Patrick Lawson, Sr. Financial Accounts Mng

*Please Retain This Document for Your Records*.

  Registered Trade-Mark of FIRST STAR LENDING.

Trade-mark of FIRST STAR LENDING.