Bad Credit Loan Scam?

I'm trying to help a friend out who ran into some financial trouble and she things she's found the solution to her problems and I kind of think she's going to end up worse off. She's asked me to borrow 900 bucks to put as a 'security deposit/insurance' payment on a $5000 loan she wants to get from a company called number1finance (number1finance.net) ... either that or have me co-sign on the loan for her. I don't cosign, I got burned on that and a car. She told me that as long as she made the payments for 3 months she'd get the security back, so I'd only have to lend it to her for that long. The deal is 'good' in that it's 5,000 at 8% for 3 years, 144/month payment.

I am of the opinion that any "loan" that asks you for money up front is a scam. She says some friend did it and it worked for them. I did a search on the site for the company name, and also checked ripoffreport and came up empty. I just want an honest 3rd party bit of information on this.

Thanks!

Welcome to Scamwarners samwise.

This is a definite scam. No credit company or loan firm will ask for fees up front for a loan.

I am pressed for time - but will post proof ASAP.

Can you post any details/information on this scammer to assist our investigations and alert and save others ?

Please do not post any personal details as this is an open forum and your personal safety online is our number one priority.

Please view this site http://www.directlendingsolutions.com/loan_scam.htm

This is a scam. You are correct - you don't need to pay money to get a loan. That would make no sense. Also, I looked them up - http://www.number1finance.net - and their website has been in existance since 7/29/09. If they were a legitimate loan-generating company, they would have had a website for longer than a few days. Nor do loan companies give back a "security deposit" after paying for 3 months.

Good job recognizing the scam - and please do tell your friend to drop all communication with the scammers. Ask her how they want her to send the $900 - it will probably be via Western Union or Money Gram. No legitimate loan companies do business via anonymous, untraceable wire transers. Once you send off money via wire transfer and give the money control number to the scammer, he can pick it up from anywhere in the world and disappear, never to be found. Hopefully that bit of information will help your friend to believe you.

Thanks for posting! I will also report their fake website to our fake site killers.

Enchantress, we were posting at the same time.

Assuming he posted the correct name of the "loan company" - number1finance.net - there's our proof positive.

Samwise - emails from the scammer, and particularly the headers of emails - would also help us to provide conclusive information to prove to your friend that it's a scam. Oftentimes, the headers of emails allow us to trace the location of the sender. This scammer is probably in West Africa (Nigeria, Benin, Ghana), and knowing that should also help your friend to believe.

Remember to delete any personal information from any emails that you post - but do include the email address of the scammer, and the headers.

Thanks again!

Thanks! I pointed her to this site and got a panicky phone call about all the personal information she sent them. More to deal with. Don't know how I always find the ones with "issues" heh. Seriously though, thanks again!!

Soo many red flags and I just don't get how people keep going forward.

Well looks like a Canadian wireless customer and a Texas hosting/email company:

Received: from mail116.bizsiteservice.com ([69.7.180.116]) by snt0-mc2-f45.Snt0.hotmail.com with Microsoft SMTPSVC(6.0.3790.3959);
Thu, 6 Aug 2009 13:14:44 -0700
Received: from 74.198.8.60 (74.198.8.60 [74.198.8.60]) by mail116.bizsiteservice.com; Thu, 6 Aug 2009 15:14:37 -0500
Message-ID: <0aa701ca16d2$87725240$8eba8d0a@ownera3664d192>
From: "Kimberly Watson" <[email protected]>
To: "[email protected]"
.......

A google of the registrant information links back to another scam website referenced here:

http://www.debtconsolidationcare.com/getting-loan/financial-group-1.html

@Samwise: It's great of you to help her. If she has given them personal information, please refer her to the FTC's site on identity theft: http://www.ftc.gov/bcp/edu/microsites/idtheft/ She is definitely at risk and should take steps to secure her information and know what to look for.

Hi Samwise,

Welcome to Scamwarners

Your actions have prevented your friend from losing a lot of money, well done

Please do post any information you can including email addresses, phone numbers and email received with anything identifiable to your friend removed, it may well prevent another person from being scammed

Hi Samwise, Welcome to Scamwarners. There is information on this type of loan scam at the beginning of this thread: http://www.scamwarners.com/forum/viewforum.php?f=35. If your friend needs convincing, you might want to print out that information to show her.

There is also a long list of the fake loan company names that have already been reported. I will add number1finance.net to the list. Do you have any other information on the company other than what is on the website, such as the names of individuals or telephone numbers?

As Underwater said, we will pass the information on this site to our fakes site killers.

Any loan company asking for an up front fee is a red light that they have no intention of sending you any money at all - it's a scam, and all they want is your fee and that's the least you'll hear from them.

If they've done their job properly, they'll be quite happy to add any fee to the loan amount, but with a scam they can't do that because you're not going to make repayments for a loan you'll never get.

Up front fee for a loan - it's a scam - walk away.

Report it here please, as there are more of these blood suckers about than can be counted.

Western Union - can only be used by private individuals. This is a screaming red light that it's a scam. There is no company if they want payment this way.