Friday, June 29, 2007
Kentucky Office of Financial Institutions Warns Consumers About Loan Scam
Kentucky Title Loans, via its web site www.ktlinc.net, is offering a variation of a common loan scam and does not appear to be a legitimate business. The Kentucky Office of Financial Institutions (OFI) is warning consumers about the company as OFI received numerous complaints and inquiries from consumers and the Better Business Bureau about an entity using the name of Kentucky Title Loans.
Kentucky Title Loans purports to offer loans at reasonable rates. However, an upfront payment is required to supposedly buy insurance on the loan. Consumers report that after sending money to addresses in Canada, they receive no response and are unable to locate anyone to complete their loans. “This appears to be another variation of the advance fee schemes about which we often receive calls,” said David Coyle, director of OFI’s Division of Financial Institutions. “Borrowers should be warned that reputable lenders do not require upfront payments in order to receive a consumer loan.”
According to the FBI, advance fee schemes require a victim to pay money to someone in anticipation of receiving something of value, such as a loan, contract, investment or gift. The victim then receives little or nothing in return. These scams often involve sending money to Canada in order to receive a loan. Consumers who have fallen victim to this type of scheme in Kentucky have sent between $500 and $2,500 for loans that they never received. Kentucky Title Loans’ Web site contains several inaccuracies. They are not licensed as a mortgage loan company or mortgage loan broker in Kentucky or any other state with which OFI has checked. They are not members of the Kentucky Better Business Bureau, and they are not located on New Circle Road, Lexington, Kentucky. Kentucky Title Loans is not registered with the Secretary of State to do business in Kentucky.
Consumers can report suspicious loan activities to OFI investigators at 800-223-2579, ext. 226. Those who believe they are victims of an advance fee scheme can file a complaint through OFI’s Web site at http://www.kfi.ky.gov/consumerinfo/filecomplaintfi.htm. Canadian loan scams can be reported to a Canadian task force at 888-495-8501.
OFI offers the following tips to avoid falling victim to advance fee schemes:
• Know who you are doing business with. Obtain the name, address and phone number of the company and consider checking with sources such as the Better Business Bureau.
• Check to be sure the business is licensed to operate in Kentucky.
• Be wary. Don’t settle for suspicious claims and verbal “guarantees.” If it sounds too good to be true, it probably is.
• Understand your business agreement. Read all the fine print.
• Consider consulting an attorney or accountant for advice, and ask the company for names and telephone numbers of customers you may contact for a referral.
• Insist on receiving information about the institutions providing the loan to the business.
OFI is an agency of the Department of Public Protection in the Environmental and Public Protection Cabinet. It licenses, charters and regulates the activities of state-chartered/licensed depository and nondepository financial institutions.
mortgage fraud
I don’t think warning are enough anymore, scams will continue to extend and we need to do something about this specially when it’s our money we are talking about. People need to be able to make the difference between good and bad loan methods. I just got a loan but before that I had to check and entire list of things to consider for my financial safety.
Posted by
Online loan on 06/23 at 03:17 PM
Has anyone used Home Loan Consulting Group for a Mortgage? They have lower rates than anyone else, just want to be sure it isn’t a problem. Thanks
Posted by on 07/30 at 06:55 AM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
