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Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 20263
Experience:  30 years experience representing clients .
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I have been offered a sizeable personal loan by a loan brokerage

Customer Question

I have been offered a sizeable personal loan by a loan brokerage company in New Jersey. I have bee searching for personal loans online & I have very poor credit. Not any offers except this one from a Co. Brighton Referral Services. Offered $10000 at 7.5% x 5 yrs. Require $800 collateral up front of which when 1st pmt of $200.38 is pd in June 2013 will be directly applied to the loan principal. Web site looks like they are ok. BBB has no info on company. Loan spec seems very professional and no pressure to get this done fast. n nI have a couple of weeks. This loan comes from a private lender. I have been scammed twice before and am very nervous although this company did send me all of the loan documents to look over ahead of time with reasonable insurance available as well. Other companies that stole my money didn't offer any loan documnets to look at and were very pushy & had me send money via green dot card & western union. This would be a bank transfer. I'd like your opinion on this one. Oh yeah, they said please have an attourney look over the documents ahead of time if any concerns.
Submitted: 1 year ago.
Category: Business Law
Expert:  Loren replied 1 year ago.
Thank you for using JustAnswer. I am LawGuy and I will do whatever I can to answer your question.

I am unclear as to how $800 collateralizes $10,000. A personal loan is typically unsecured.

If it is for loan fees or interest proration, it can be deducted from principal advanced to you.

That alone makes ne suspicious. You may want to check with your state attorney general to see if there are any consumer complaints against this lender.

I would advise taking a pass.

It has been my privilege to assist you. Please remember to rate my answer when our communication is completed so I will be compensated for my time in providing you with the information you requested. If you feel the need to provide a low rating, please stop and reply to me via the REPLY or CONTINUE CONVERSATION button with whatever issue or clarification you may need. I will happily answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction. Please also remember that I cannot control whether the law is favorable to your situation, so please do not penalize me for having to deliver bad news.

LawGuy

When you receive a Customer Satisfaction Survey from JA/Pearl, please do rate me highly (8-10). It benefits my ability to assist you and other customers and would be most appreciated.
Customer: replied 1 year ago.

The $800 apparently represents how badly I want the loan & also represents the 1st four monthly pmts up front as my credit score is below 600 and there are no offers for loans whatsoever out there for people like me. If I default on making the 1st monthly pmt of $200.38 in June I lost the $800.00 as well as continuing with the loan

Expert:  Loren replied 1 year ago.
There is no legitimate loan that has you make payments on money that has not yet been disbursed.

This does not pass a smell test. It seems predatory at best and fraudulent at worst.

I do not recommend going through with it. I understand that need can cloud your judgment and I am writing to you as an unbiased attorney with almost 30 years of practice under my belt.

This "audition" to qualify for their loan smacks of an advance fee scam.

LawGuy
Loren, Attorney
Category: Business Law
Satisfied Customers: 20263
Experience: 30 years experience representing clients .
Loren and 9 other Business Law Specialists are ready to help you
Customer: replied 1 year ago.

OK Thats more like what I was wanting to hear. Thanks for your advice. I will PASS on this one, and no more online loan apps for me

Expert:  Loren replied 1 year ago.
Thank you for your positive rating of my service. It has been my privilege to assist you and I hope you will ask for me (LawGuy) on JA/Pearl should the need arise in the future.

Please feel free to bookmark the following link so you can request me to answer any future legal questions you may have:
http://www.justanswer.com/law/expert-lawguy/

Good luck.

LawGuy

When you receive a Customer Satisfaction Survey from JA/Pearl, please do rate me highly (8-10).  It benefits my ability to assist you and other customers and would be most appreciated.

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