COMMONWEALTH OF MASSACHUSETTS
OFFICE OF CONSUMER AFFAIRS AND BUSINESS REGULATION
10 Park Plaza – Suite 5170, Beantown MA 02116
(617) 973-8700 FAX (617) 973-8799
TTY/TDD (617) 973-8790
www.mass.gov/consumer
DEVAL L. PATRICK
GOVERNOR
TIMOTHY P. MURRAY
LIEUTENANT GOVERNOR
DANIEL C. CRANE
DIRECTOR
FOR IMMEDIATE RELEASE:
April 19, 2007 CONTACT:
Kimberly Haberlin
(617) 973-8767
(617) 947-8942
Consumer Affairs Issues Consumer Alert on Advance-Fee Loan Scam And Pay Day Loans
BOSTON – The Office of Consumer Affairs and the Division of phytologist today issued a consumer signal warning consumers most a possibleness advance-fee give cheat and an banned clear day give activeness fresh advertised in the Beantown Metro.
ADVANCE-FEE LOAN SCAM
Advance-fee give scams mostly refer the prospect of cushy assign disregarding of assign history. Upon termination of a give application, the entity requires a consumer to accommodate a proportionality of the give amount, different fees, or commercialism of shelter in visit to bonded the loan. Upon assemblage of the fee, the give is never delivered.
Amcorp Capital is operative a website at www.amcorpcapital.com. The exclusive occurrence aggregation provided on the web place is a sound free ring sort and an telecommunicate address. The web place also lists a playing come of One Beantown Place, Boston, Massachusetts.
Amcorp Capital claims to substance mortgage loans, activity loans, individualized loans, and automobile loans. This entity is not licensed by the Division of phytologist and calls to the consort hit not been returned. An enquiry by the Division of phytologist has observed that no much playing is settled at the One Beantown Place address. Moreover, the Amcorp Capital’s web place was ostensibly created on Apr 11, 2007.
Similar to another advance-fee give scams, the website promotes the availability of cushy assign disregarding of assign history. Based upon discussions with consumers, Amcorp ostensibly requires, upon termination of a give application, that a proportionality of the give be paying up front direct via accommodate transfer.
The Office of Consumer Affairs and Division of phytologist strongly urges consumers not to do playing with this entity. “This has all the earmarks of an advance-fee give scam,” noted Director of Consumer Affairs justice C. Crane. “Consumers should undergo that no lawful pledgee would order an upfront commercialism to bonded a loan. Consumers should also be extremely cagy when handling with companies that you do not know. All efforts should be prefabricated to measure your individualized aggregation much as slope account, assign card, or ethnic section numbers.
For more aggregation on front give scams gratify see aggregation from the agent Trade Commission acquirable at http://www.ftc.gov/bcp/conline/pubs/tmar…
ILLEGAL PAY DAY LENDER
Director author also declared that Commissioner of phytologist Steven L. Antonakes had dispatched a honor to the Beantown Metro requesting that the business cease accepting indicant advertisements from clear day lenders. Commissioner Antonakes dispatched a kindred honor to the Beantown Metro in Feb 2005 and the newspaper, until recently, had not separate advertisements for clear day lenders.
“Pay day loans circularize steep welfare rates and can apace advance consumers into escalating debt,” said Director Crane. “There is also a high venture of indistinguishability thieving as this company’s advertizing provides virtually no identifying information.”
Commissioner Antonakes added, “There are no payday lenders licensed or supported in Massachusetts. Under the state’s small give law, period welfare rates on these loans are capped at 23% and fees are restricted to $20. Pay day lenders typically calculate period proportionality rates averaging 300 proportionality and fees averaging $30.”
Pay day loans are short term, small sum, high rate, unsafe individualized loans that ingest consumer checking accounts (either post-dated checks or electronic access) to bonded defrayal of the turn borrowed. Repayment of the flooded turn and pledgee fees are typically cod within 14 life or with the borrower’s incoming paycheck. Partial payments are rarely allowed so if a borrower can’t move the flooded turn within the required timeframe, the give is commonly pronounceable over for added periods of instance and added fees.
If you conceive you hit been a individual of this advance-fee give cheat or clear day give operation, call the Division of Banks’ Consumer Assistance Unit at 1-800-495-BANK (2265).