According to USA Today, New York City and Dallas each recently reported 4,000 complaints and inquiries; Phoenix had 6,000 and Cincinnati had 8,000. Consumers who respond are easily pre-approved for a loan. They’ll receive it once they send an application fee or processing fee of several hundred dollars. The new loan, of course, never materializes.

State consumer protection agencies are finding that loan brokers are often a slippery bunch. Following thousands of complaints, Florida swiftly shut down more than 100 companies. But they soon show up in other states under different names.

Ask questions, check the answers and consider all the facts before making that purchase or investing those hard-earned dollars. Always standing close by are those with their hands out, more than willing to take your savings from you. Don’t let it happen to you. Be prepared, investigate and then invest!

Your thoughts on this subject? Your comments appreciated!

Content © Rich Brott, 2011

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