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Scammer's Ad For Bogus Loan Snags Wisconsin Couple

By Mark Huffman
ConsumerAffairs.com

May 10, 2006
A Wisconsin couple saw an ad in their local newspaper for a $30,000 loan from New Jersey-based Capital Group. The terms were attractive so they applied.

Instead of getting the $30,000 for their home improvement project, the couple is out $2,500.

The ad for Capital Group looked real, but it had been placed, not by the bank, but by a scammer who replaced the company's toll-free number with his own.

The Sheboygan County Sheriff's Department said the couple was instructed to send $2,500 to process the loan, which they did. They were contacted again and told to wire an additional $3,000.

That's when they got suspicious and noticed the toll-free number didn't belong to Capital Group.

Authorities say it appears the scammer photocopied a legitimate ad for Capital Group and altered it to carry out the scam.

Financial experts say lenders don't require loan applicants to send payments, since fees are usually deducted from the loan amount.

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