Better Business Bureau warns about unauthorized payday loan fees

The Better Business Bureau on Tuesday issued a nationwide consumer warning about a cluster of online payday loan businesses in Las Vegas that have charged people who browsed their websites in recent months $30.

More than 370 complaints have been filed against the companies in recent months, the BBB said.

The seven loan companies, all based at the same Las Vegas address at 2780 S. Jones Blvd., have websites that are almost identical except for the names. The names include Capital Advance Capitol, also known as Loan Assistance, Vantage Funding, Palm Loan Advances, Ideal Advance, Loan Tree Advance, Your Loan Funding and Pacific Advances.

"I can't say they all occupy the same address because they are not physically there because the location is a mail drop," said Rhonda Mettler, operations manager with the Better Business Bureau of Southern Nevada.

Mettler said she's been unable to get more information about the company or its owner.

"I've been there; it's a mail drop," she said. "That's a problem. They won't give me a physical address."

All of the companies except Your Loan Funding have "F" grades with the BBB. Your Loan Funding is not rated.

Neither Capital Advance Capitol nor Vantage Funding discloses a $30 application fee in the information posted on their websites.

The BBB posted 76 complaints in three months against Capital Advance Capitol for billing and collection issues, as well as problems with the product and service offer.

Mettler said the BBB turned over dozens of complaints Monday to the Federal Trade Commission. Messages left with Capital Advance Capitol were not returned.

"We've also been in touch with the (Nevada) attorney general's office," she said. "We are hopeful the FTC and attorney general's office will kick in and shut them down."

Mettler said her office received 17 complaints in one day.

"This company is new to our files but has received a significant volume of complaints," the BBB said. "Complaints contain a pattern of serious allegations that customers were debited $30 in unauthorized charges for online payday loans."

According to the complaints, most consumers never formally applied for the loans, and a few said they had no idea how the businesses got their bank account information.

"When contacting the company to have their money refunded, consumers said they were told they applied for a payday loan and they would receive a refund within 15 business days, which in most cases failed to materialize," according to the complaints.

Mettler said, "Some consumers have been reimbursed, which is a good thing."

The BBB's tips for consumers to avoid these problems include not giving banking or personal information to unfamiliar people or websites; reading and understanding all terms and conditions of any loan company website before entering any information; and checking the company's BBB Business Review at bbb.org.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.
Follow @sierotyfeatures on Twitter.