I recently applied for a secured loan. I did a background check on the company using google and the BBB, I also contacted the attorney gener...

Question

I recently applied for a secured loan. I did a background check on the company using google and the BBB, I also contacted the attorney general's office in n.y where the company is. They emailed me a contract and advised me to show it to my lawyer. Because I have no property they want (6) month of payments or $932 before they release the funds. I know it is illegal to charge fees and so do they I was told this payment goes to our principal. I am not sure if this is legal and what recourse I have if I send the money(credit card) and no loan is deposited into my account. What is your advice? The company is International Capital trust

Answer

Frankly, I have never heard of such an arrangement. To get a secured loan, there has to be collateral, and it seems as if they want to check on your ability to make the loan payments. The problem is, if you fail to make these advance payments on time, you might not be able to get that money back. You really should show the contract to a lawyer to get his advice and his explanation and opinion of the contract.

Answer

Check out http://answers.yahoo.com/question/index?qid=20110802201845AAkAuYI. Also: check out: http://answers.yahoo.com/question/index?qid=20110811081909AAv5dk0. And finally, check this out: http://answers.yahoo.com/question/index?qid=20110805141449AA6b9Au.

This company sounds like a typical scam and based upon the above websites, I would think that you would throwing your money away to to do business with them.

Even if the contract is totally legit, the company behind it seems to be a fraud. As I said, they are simply out to get your money. I would stay away.

Please call me tomorrow and I'll be glaf to discuss this further.

Andy