Posted on: Tuesday, May 18, 2004

Loan scheme may be taking hold in Islands

By Dan Nakaso
Advertiser Staff Writer

The Better Business Bureau of Hawaii and the Hawaii Credit Union League yesterday warned consumers against falling victim to a potential scam involving an organization posing as a credit union and collecting up-front fees on bogus loan applications.

A Big Island consumer complained last week about a newspaper ad offering loans through "Heartland Credit Union," which is similar to the name of a legitimate credit union on the Mainland. The consumer filled out a loan application and was told by phone that the loan was approved.

The consumer was asked to send $850 via Western Union to purchase insurance before the money would be sent, said Anne Deschene, president of the BBB of Hawaii.

After sending the $850, the loan did not arrive as promised, and the consumer could no longer contact anyone at the company.

Deschene called such "advance fee loans" a "different kind of 'loan-shark operation.' "

Legitimate guaranteed offers of credit do not require payments in advance, Deschene said.

Last week's complaint makes her worry that others have fallen prey, as well.

"If somebody's calling us, then our experience tells us that others have gone through the same experience but just are not calling us," Deschene said.

To contact the Better Business Bureau of Hawaii, call 536-6956.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.