Local consumers warned on loan deal

The Better Business Bureau in Spokane is warning consumers about what it calls an advance-fee loan scam by a company claiming to operate in Nine Mile Falls.

The bureau received complaints about callers purporting to represent Cornerstone Investment who offer loans to applicants who will wire an advance fee of $3,200, according to the BBB. The caller claims the loan funds will be deposited in the customer’s account within two days, but it never shows up.

People in Maryland and Santa Clara, Calif., both complained after wiring money, and they likely won’t get it back, said BBB spokeswoman Zan Deery. While it’s unlawful for callers to promise loans and require upfront payment, such scams are becoming an increasing problem, she said.

A message left on Cornerstone Investment’s toll-free number was not returned. The address in Nine Mile Falls does not exist, the BBB said.

The BBB contacted the state attorney general’s office and the Department of Financial Institutions, Deery said.

The attorney general’s office has not received a complaint about that business, said spokeswoman Kristin Alexander. The office will not say if it’s investigating, she said.

Such scams are “exceptionally common,” and consumers should be wary of wiring money or responding to cold-call pitches, Alexander said. If lenders ask for money up-front, it’s probably a scam — especially if they ask for hundreds or thousands of dollars, she said.

Would-be Cornerstone Investment borrowers who called the company to complain were told they would need to spend an additional $1,600, according to the BBB.

Many scams involve foreigners, and Cornerstone Investment may have no local ties, Alexander said.

The company also uses the BBB logo, but it’s not a member. The company’s recently created Web site, www.easyloans2day.com, asks for sensitive information such as bank account and Social Security numbers, according to the BBB.

“The local BBB also this week issued an alert about invites sent to families of high school students by Edifi College Financial Aid Services.

The Albany, New York-based company, which offers college-preparation services, “has an unsatisfactory report with the BBB due to a pattern of complaints from consumers who report misleading sales practices and dissatisfaction with the service,” according to the BBB. The BBB alleges the company holds seminars where it pitches its services — primarily filling out financial aid forms — for about $900.

But John Braat, chief operating officer for CFAS LLC, which does business as EDIFI, said the company offers a broader range of services, such as SAT preparation and financial planning advice. Its rates are an “unbelievable bargain,” he said.

Deery said some people do opt to use third-party college prep assistance, but families often can receive information from school counselors or educators. EDIFI received 113 complaints over the last three years, according to the BBB.

Braat contended that the BBB formulates its reports on “rumor and innuendo.”