Victim Location 29204
Total money lost $6,315
Type of a scam Advance Fee Loan
AND I HAVE CONCLUDED THIS LOAN SCAM IS FRAUDULENT. IN MY PREVIOUS THREE EMAILS TO SIMPLE FINANCE, I DELINEATED THE WAYS THAT SIMPLE FINANCE SOLUTIONS HAS BREACHED THE SIGNED, NOTARIZED LOAN DOCUMENTS. I HAVE INDICATED MY CONCERNS OVER THE ADVANCE FEES. THE FINAL STOPPING POINT FOR ME IS THE REQUIREMENT FOR A BOGUS WIRE TRANSFER TAX FEE. I SPOKE WITH ALEX TODAY AND HE REFUSED TO BUDGE ON THE FEE. I ASKED HIM TO SEND MY OCT. 2 COMPLAINT TO THE COMPLAINT DEPARTMENT (IF THE IS ONE), AND I REQUESTED HE TRY TO GET THE FEE REDUCED. HE REFUSED. Tonight, I realized I have protection under the Eldercare Fraud Protection Act. THEREFORE, IN LIGHT OF THE INFORMATION BELOW AND BECAUSE OF THE SKETCHY ACTIONS OF SIMPLE FINANCE SOLUTIONS, I AM REQUESTING TO HAVE MY REFUNDABLE MONEY REFUNDED TO ME AT ONCE AND TO CLOSE THE LOAN FILE FOR THE REASONS LISTED BELOW. Had you simply acted upon the stipulations of your loan, then I never would have had to push back. Your inactions have cost me $ 4,660 plus eighty-one days of mental and financial stress. I have been under a doctor’s care for anxiety these last couple of months…. thus, adding to my financial burden. Your inaction on granting the loan for which I was approved July 14th and demands for more undisclosed fees have pushed me into a situation of filing complaints as well.
Before going into the wire transfer issue, I want to include an excerpt of the Eldercare Fraud Protection Act “… the victims are told they are guaranteed to receive their loan amount IF THEY PAY a fee to transfer or send the money (usually $100 – $300). This has the earmark of an illegal advance loan fee scam.” Well, SimpleFinance wants to charge me $2,500!!!! I often forget that I am a sixty-two-year-old card-carrying member of AARP. Thus, protected under the EFPA (federal and state levels).
In my conversation with Alex earlier today (Oct 3), I expressed my concerns whether this is a scam/fraud loan. I have spent several hours with my advisor. We have researched federal, state and local banking/lending laws, called west coast lenders for specific business operations questions, and spoke by phone with the Consumer Protection Agency. In the research for complaints against Simple Finance (with FTC and Fed Cons Protection) and found nineteen (19) unresolved complaints against Simple Finance Solutions that mirror my situation since JUNE 2018 from people around the Southeast. These 19 people were approved for loans, they paid the attorney fees, closing costs, assurance fees and some paid the disbursement fee others did not. NONE of these people had received their loans OR their refunds. Several reported they stopped the loan process and demanded their “refundables”, but NONE has received anything.
A wire transfer is used to transfer funds from one bank or financial institution to another. These transfers are considered remittance transfers or electronic transfers of money from one entity to another under U.S. law. Wire transfers can be an expensive way to send money from one bank account to another, with typical outgoing fees of $25 per transfer within the U.S.
The sender of a wire transfer first pays for the transaction up front at his bank. The recipient’s bank receives all the necessary information from the initiating bank and deposits its own reserve funds into the correct account. The two banking institutions then settle the payment on the back end, after the money has been deposited. Therefore, no physical transfer is made during a wire transfer.
All legitimate wire transfers take two days or less to process, on average. If an electronic form of payment takes longer than a few days, it is not a true wire transfer. A domestic wire transfer is processed on the same day when it is initiated and can be received within a few hours. International wire transfers can be expected to be delivered within two business days. The difference in lead times comes from the use of ACH (Automated Clearing Houses and foreign processing system). A domestic wire transfer ONLY has to go through a domestic ACH and can be delivered within a day.
Wire transfers cost money to initiate, regardless of whether they are domestic or international transfers. Some providers of domestic wire transfers charge as little as $25 per transaction, but the fee can be as high as $35 or more. International wire transfers sometimes have a higher fee; it’s possible to pay upward of $45 to initiate an international wire transfer.
Banking and Financial Institutions/SEC
Domestic Wire transfers aren’t necessarily taxable events. You’ll have to pay any bank fees related to the wire transfer, but the money does NOT create a tax liability for the lender or for the institution from which the money is held in escrow.
The Institutions are required to file IRS for funds transferred to or from other countries.
The recipient of the wired money is required to file and pay taxes with the IRS – not the sender. (see forms 3520 and 1800) depending on the source of the wired income. (domestic transfers use a different form from the international transfers.)
ACH transfers are significantly cheaper than wire transfers, which generally cost between $15 and $50 — an ACH transfer, by comparison, is usually free or only a few dollars at most. no fee? (Again, there is NO wire transfer tax to be paid in CA, SC, GA, AZ, NJ or to federal government for domestic transfers. The tax is on the INCOME of the recipient.)
FROM FEDERAL TRADE COMMISSION:
Advance fee scams: Someone contacts you offering help with some financial need—for example, getting out of debt, reducing payments on your student loans, avoiding foreclosure, getting a lump sum out of your pension, tapping the equity in your home, negotiating a tax settlement or erasing negative information in your credit report. You pay the scammer’s fee upfront, but the loan doesn’t materialize. Tip: Be skeptical if you didn’t initiate contact. Research the company and the value of the services offered (many are available free). Avoid anyone who promises you will qualify for a loan or credit card before you even apply, particularly if you have a low or no credit score.
From the Federal Trade Commission Web Site regarding advance-fee loan scams:
Six signs of Advance-Fee Loan Scams:
1) Lender who isn’t interested in your credit history – “Bad credit? No Problem… You deserve a loan” or Get money fast” or No hassle guaranteed”
2) Fees that aren’t disclosed clearly or prominently – scam lenders may approve you for a loan, then call or email requesting a fee BEFORE you get your money. Recognize a scam when they ask for fees before granting the already-approved loan…fees for insurance, attorneys, processing, paperwork, assurance, or for transferring the funds to you. Legitimate lenders ALWAYS disclose ALL fees up front.
3) Loan that is offered by phone. It is ILLEGAL FOR COMPANIES DOING BUSINESS BY PHONE IN THE US TO PROMISE YOU A LOAN OR CREDIT CARD AND ASK YOU TO PAY BEFORE THEY DELIVER. This is a federal law – it applies to every state in the nation.
4) Lenders who use “copy-cat” or “wanna-be” names: Scam companies give their companies names that sound like well-known or respected organizations and create professional-looking websites. Some illegally claim ties or memberships to BBB, major banks or other reputable organizations. Always get a physical address and check their phone numbers from a phone book or directory assistance. False or misleading information is contrary to AFLS.
5) Lender who is NOT registered in your state. All lenders and loan brokers are required to register in states where they do business. It is ILLEGAL for a company to do business in ANY STATE without first registering with the state Attorney General’s office or the Department of Banking and Financial Regulation.
6) Lender who asks you to wire money or pay an individual. Never make a payment for a loan to an individual. LEGITIMATE LENDERS DO NOT ASK FOR WIRE TRANSFER FEES – UNLESS DISCLOSED WITH THE LOAN CONTRACT.
In summary, in response to not releasing my loan after over 5 months, please send my refund of $4,660 that I sent you by certified checks and any accrued interest and close my loan file.