Online loans

Wincanton Lending Faces Online Loan Complaints

Nine people have filed complaints against Wincanton Lending and 835 people have asked the Better Business Bureau about the Atlantic Canada loan company, the BBB reported on Wednesday.

The BBB said consumers said they paid money to insure the Wincanton Lending loans, but did not receive any money in return.

The BBB is waiting to hear Wincanton’s version. CBC News has contacted Wincanton Lending for comment, but has not heard back from them. The company’s website went offline on Wednesday afternoon.

It is very likely that this is the tip of the iceberg. – Peter Moorehouse

“Those we heard from are understandably disappointed that they did not receive the loan this company promised them,” said Peter Moorhouse, President and CEO of BBB Atlantic Canada.

“But what makes this situation even more concerning is that they also paid between $ 1,000 and $ 2,500 in loan fees.”

The BBB says people apply for loans online and get quick approval for up to $ 40,000. People are then informed that they must insure the loan with a co-signer, a guarantee or by paying.

“While consumers are advised that they do not qualify for the first two options, they are advised to send money up front for insurance charges on the loan in the amount of $ 1,000 to $ 2,500, “the BBB said in a press release.

red flags

The plaintiffs say they paid the insurance costs but did not receive any loans.

“In a lot of cases, these are the people who can least afford that kind of money,” Moorhouse told CBC. Maritime noon, adding that they are “probably in dire need of the money and really need this money.”

Wincanton Lending is not on the business corporation register and they are not located at the downtown Halifax address they provide, according to the BBB.

The company’s website was registered in June.

“It’s very likely that this is the tip of the iceberg,” Moorhouse said, as the company could change its name and website to relaunch the business.

He said there are legitimate online lenders, but urged caution. If you have bad credit and a business offers a quick loan, worry.

“As much as it sounds like a good thing, it should really be a big red flag. A normal financial institution will need collateral to protect itself against risk.”

Insurance costs can be legitimate, but they are rare. It is particularly rare to request payment of fees online. “You would be sitting in an office somewhere. You would be signing papers,” he said.

How to Avoid Online Loan Scams

The BBB also offered tips for avoiding online loan scams.

It is said that if you are applying for a loan online and encounter any of the following issues, do not deal with the company anymore:

  • You are secured for a loan without providing financial information, even if you have no credit, bad credit, or if you are bankrupt or have gone bankrupt.
  • You are guaranteed a loan after you are refused by legitimate local lending institutions.
  • Initial charges are not initially disclosed.
  • You are required to send money to the business to pay upfront fees for insurance, administration, legal fees, or taxes.
  • If the business is not registered in the province or state for which they provided an address.
  • The company requires you to send money immediately.