Bad Credit Companies

Posted by admin on November 27th, 2008 at 12:00am

Question:
Are bad credit companies that issue personal loans permitted to ask for a couple months down payment right away?
I applied for a bad credit personal loan over the internet. A company named Birchmount Lending called saying I was approved for five thousand, with monthly payments of 223.54 for two years. But because my credit is not the best, I would need to give them four payments upfront. Let me know what you think.

Answers:
There are two really obvious things not right with this offer. First no legitimate company requests any money up front. The other is for your payments to be that small for two years, your interest rate would need to be around 6 percent. Now consider that. Would that sound like any bad credit companies interest rate?

You are surely not interested. This is known as an advance fee loan scam.
It seems like the same scam operated by a company under the name of Fremont Lending. Did you happen to talk with someone by the handle of Edward Field? This company will take your fee and contact you back saying the lender backed out of your loan but they found a second lender that will take up your loan application for an additional fee.
These companies will take advantage of individuals all of the time. I know of 6 people who were fooled and they did not get their money back.

It is definitely a scam.
It is a change from the old Advance Fee Scam.
They assure you something, and in your case, it is a loan, if you give them a fee in advance. The fact that they have really no intention of issuing you the loan is something that they fail to tell you.
“Birchmount Lending” is possibly a seventeen year old kid sitting in an internet cafe somewhere in Nigeria.

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