Response from the FTC
Date: Tue, 10/03/2006 - 10:38
Below is the FTC's response to my complaint:
Quote:
Thank you for visiting the FTC's web page and for using our NEW electronic Talk To Us form. Here's what happened to your information after you sent it to us: One of our consumer counselors reviewed the information you sent us. If it was related to the FTC's law enforcement responsibilities, we entered it into our shared law enforcement data system. We share this data system with law enforcement agencies throughout the United States and Canada. Attached is your electronic response, which includes your reference number. Any enclosures can be found at FTC.GOV under the News Releases, Publications, Speeches option. Information from consumers like you helps Federal, State and Local authorities investigate possible illegal practices and enforce our laws. Someone from the Federal Trade Commission or another law enforcement agency may contact you if they need additional information to help them in an investigation. Thank you for using our Talk To Us form, and please continue to use the FTC's web page, ftc.gov, to get free information to help you avoid costly consumer problems. Re: FTC Ref. No. xxxxx Dear xxxxxxx: Unfortunately, Advance Fee Loan (AFL) companies have already victimized hundreds of thousands of consumers, and have inflicted millions of dollars in consumer injury. AFLs usually advertise in classified sections of newspapers, offering loans of $1,000 to $15,000 to consumers who have bad credit or no credit. When a consumer calls the company's number, often an 800 or 900 number, seeking a loan, an AFL telephone salesperson, or "loan broker," asks a few basic questions about the consumer's income, and then tells him or her to call back in ten or fifteen minutes. Invariably, a consumer who calls back is told that the requested loan has been approved. The loan broker then tells the consumer that he or she must pay a "processing" or "application" fee by sending a money order by overnight mail, arranging for a wire transfer, or authorizing an electronic bank debit over the telephone, purportedly so that the promised loan can be delivered within a week or ten days. In some cases, the loan broker requests personal information such as a copy of the consumer's social security card, driver's license, or check stub, which can be used to commit identity theft. The loan broker promises the consumer orally that the processing fee will be returned if the loan "offer" is at some later point rescinded. Typically, when a consumer calls after roughly two weeks to learn the status of his or her loan, the loan broker uses various stalling tactics to prevent the consumer from complaining to law enforcement agencies or the Better Business Bureau. Often, the consumer finally receives a denial letter from a second company that appears to be a lending institution. Many of these companies are actually nothing more than "turn-down shops," whose sole function is, for a fee, to send loan denial letters. When the consumer requests a refund from the loan broker, after receiving the loan denial, the loan broker typically makes excuses as to why a refund cannot be provided. In many other instances, the AFL has disappeared by the time consumers call to inquire about the status of their loans. The principals of these AFLs often move to different states, change the names of their companies, and resume their operations. Many AFLs operate outside the United States to avoid prosecution. The victimized consumers unfortunately never recover their "processing" fees. The Federal Trade Commission has brought a number of law enforcement actions against companies that were involved in advance-fee loan scams. Enclosed is a brochure giving some tips on how to avoid these loan sharks. In addition, you may wish to contact the United States Postal Inspection Service and the Federal Bureau of Investigation to learn whether they are investigating the loan broker with which you have been dealing. You may also wish to contact the State Office of Consumer Affairs or the State Office of Attorney General -- as well as the local Better Business Bureau -- to discover whether they are investigating the company. If you believe the company is operating in Canada, you may also want to contact Phonebusters in Canada at (888) 495-8501. Sincerely yours, Consumer Response Center |
It's nothing but a generic letter, not a response from an indivi
It's nothing but a generic letter, not a response from an individual who went through your case. Wait for some more time if you get another reply from the authorities
Thanks,I was confused by their reply. I was hoping this wasn't t
Thanks,I was confused by their reply. I was hoping this wasn't the end of this.
Thanks again.
FTC
Mamasita....
Unfortunately that's probably the only response you will receive from them.
If you do receive a more specific response it will be to the effect that you are on your own,and although the pdl's talk mean to you,they are operating legally.
Don't despair though,some of these guys you can take on your own. It may take some research to build
a case. However,you can do it! Utilize your law library found at your local courthouse...the best part,it's free!
Do not forget,These pdl's count on ignorance. Show them you are knowledgeable of the laws!
Roadwarrior, That is great advice. These types of companies
Roadwarrior,
That is great advice. These types of companies prey on fear. A little knowledge does go a long way. Good luck and keep us informed on your progress.