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Zoey_JD
Zoey_JD, Criminal attorney
Category: Fraud Examiner
Satisfied Customers: 23578
Experience:  Active member of the NYS bar since 1989
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A fellow in Medina New York named Drown charges a loan

Customer Question

A fellow in Medina New York named Charles Drown charges a loan application fee of $250 to borrow $8,500. After it is paid by Moneygram to him he asks for the fee again saying that the name on the bank account did not match the name on the application. So the process has to start over.
Submitted: 5 months ago.
Category: Fraud Examiner
Expert:  Zoey_JD replied 5 months ago.

Hello,

I'm Zoey and I'll be assisting you. Should you wish email or phone support, let me know and the site can arrange that. Are you online now?

Expert:  Zoey_JD replied 5 months ago.

An up front fee for any reason at all is the #1 sign of a loan scam. Any legitimate lender would take any transfer expenses from the money set aside to loan you and send you the rest free and clear. They also would not be asking for payment via MoneyGram.

Report the fraud to your police, to the FBI at IC3.gov, to the Federal Trade Commission at FTC.gov and to your state attorney general.

Customer: replied 5 months ago.
I understand your answer, but at what point has a crime been committed?
Expert:  Zoey_JD replied 5 months ago.

Granted, it would be easier for the authorities to prove that this person is defrauding you after he has already cheated you out of your money. Regardless, he is committing a fraud, and the up front fee is its hallmark.

Customer: replied 5 months ago.
Is the upfront fee a crime itself in NY state?
Is a crime committed when no funds are lent after the application is accepted and the fee is paid, with the excuse cited that the bank account name does not match the name on the loan application, so another full fee needs to be paid again.
Expert:  Zoey_JD replied 5 months ago.

Sorry for the delay, but I turned off my computer for the night by the time you posted your reply.

A fraud is committed when the perpetrator acts intentionally to make false representations to defraud you of your money or property.

And he would not charge an up front fee. The only reason for the so called application fee is that they have no real money to lend you and will be running off with your money. The "lender" selected MoneyGram as a means of payment because payments are untraceable. In that way, they could claim to never have received it. All part of the scam.

A legitimate lender has to be licensed in every US state in which he does business. To lend money in New York, this so called broker would have to be registered with the NYS Department of Financial Services. If he/his company is not there, he's not for real.

Report him to the sources I have indicated above.

Customer: replied 5 months ago.
I am starting to get the guy to back down under threat of criminal and civil action I am threatening him with. However, he is not fully committed yet. He has requested a call from my attorney. Would you be my attorney for this purpose? I think he will comply and fund the loan without additional upfront fee cost if he knows I am serious. BTW a young mother and child are stranded and without food without this loan. Long story though to tell.
Expert:  Zoey_JD replied 5 months ago.

I am sorry but justanswer is not a law firm and we are not allowed to engage in actual representation. You can contact the New York bar association's lawyer referral service to find representation.

Expert:  Zoey_JD replied 5 months ago.

Just checking in to see if you need more help or any clarification of my answer. If so, please reply here on this question thread.