Complaint Review: Silvergate Financial Services - Philadelphia Pennsylvania

Just When You Thought It Was Safe...Advance-Fee Loan "Sharks" http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt028.shtm A different breed of "loan shark" is preying on unwary consumers by taking their money for the promise of a loan, credit card or other extension of credit. Advertisements and promotions for advance-fee loans "guarantee" or suggest that there's a high likelihood of success that the loan will be awarded, regardless of the applicant's credit history. But, to take advantage of the offer, the consumer first has to pay a fee. And that's the catch: The consumer pays the fee, the scam artist takes off with the money, and the loan never materializes. Legitimate guaranteed offers of credit do not require payments up front. Legitimate lenders may require consumers to pay application, appraisal or credit report fees, but these fees seldom are required before the lender is identified and the application completed. In addition, the fees generally are paid to the lender, not to the broker or arranger of the "guaranteed" loan. Legitimate lenders may guarantee firm offers of credit to credit-worthy consumers, but they rarely do this before evaluating a consumer's creditworthiness. Advertisements for advance-fee loans generally appear in the classified section of daily and weekly newspapers and magazines. Often, the ads feature "900" numbers, which result in charges on your phone bill. Advance-fee loans also are promoted through direct mail and radio and cable TV spots. The appearance of ads in media outlets that you recognize - like your local newspaper or radio station - is no guarantee of the legitimacy of the company behind the ad. The Federal Trade Commission says you can avoid being bitten by advance-fee loan sharks: Here's how: Don't pay for a promise. It's illegal for companies doing business by phone to promise you a loan and ask you to pay for it before they deliver. Ignore any ad - or hang up on any caller - that guarantees a loan in exchange for an advance fee. Legitimate lenders never "guarantee" or say that you will receive a loan before you apply, especially if you have bad credit or no credit record. Never give your credit card or bank account numbers, or Social Security Number, over the telephone unless you are familiar with the company and know why the information is necessary. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues , visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network , a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.  May 2000   Advance-Fee Loan Scams: Easy Cash Offers Teach Hard Lessons Looking for a loan or credit card but dont think youll qualify? Turned down by a bank because of your poor credit history? You may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. The catch comes when you apply for the loan or credit card and find out you have to pay a fee in advance. According to the Federal Trade Commission (FTC), the nations consumer protection agency, that could be a tip-off to a rip-off. If youre asked to pay a fee for the promise of a loan or credit card, you can count on the fact that youre dealing with a scam artist. More than likely, youll get an application, or a stored value or debit card, instead of the loan or credit card. The Signs of an Advance-Fee Loan Scam http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel16.shtm The FTC says some red flags can tip you off to scam artists tricks. For example: A lender who isnt interested in your credit history. A lender may offer loans or credit cards for many purposes for example, so a borrower can start a business or consolidate bill payments. But one who doesnt care about your credit record should give you cause for concern. Ads that say Bad credit? No problem or We dont care about your past. You deserve a loan or Get money fast or even No hassle guaranteed often indicate a scam. Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit even to creditworthy consumers. Fees that are not disclosed clearly or prominently. Scam lenders may say youve been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if youre told its for insurance, processing, or just paperwork. Legitimate lenders often charge application, appraisal, or credit report fees. The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved. Its also a warning sign if a lender says they wont check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee theyre hiding. 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. A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or another reputable organization, and some even produce forged paperwork or pay people to pretend to be references. Always get a companys phone number from the phone book or directory assistance, and call to check they are who they say they are. Get a physical address, too: a company that advertises a PO Box as its address is one to check out with the appropriate authorities. A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state Attorney Generals office or your states Department of Banking or Financial Regulation. Checking registration does not guarantee that you will be happy with a lender, but it helps weed out the crooks. A lender who asks you to wire money or pay an individual. Dont make a payment for a loan or credit card directly to an individual; legitimate lenders dont ask anyone to do that. In addition, dont use a wire transfer service or send money orders for a loan. You have little recourse if theres a problem with a wire transaction, and legitimate lenders dont pressure their customers to wire funds. Finally, just because youve received a slick promotion, seen an ad for a loan in a prominent place in your neighborhood or in your newspaper, on television or on the Internet, or heard one on the radio, dont assume its a good deal or even legitimate. Scam artists like to operate on the premise of legitimacy by association, so its really important to do your homework. Finding Low-Cost Help for Credit Problems If you have debt problems, try to solve them with your creditors as soon as you realize you wont be able to make your payments. If you cant resolve the problems yourself or need help to do it, you may want to contact a credit counseling service. Nonprofit organizations in every state counsel and educate people and families on debt problems, budgeting, and using credit wisely. Often, these services are low- or no-cost. Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. To learn more about dealing with debt, including how to select a credit counseling service, visit ftc.gov/credit . Where to Complain If you think youve had an experience with an advance-fee loan scam, report it to the FTC. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues , visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network , a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.  April 2008