A person from the Big Island responded to an ad in a Big Island newspaper offering guaranteed loans through “Heartland Credit Union.” The only problem was that, while Heartland is a real company, the name was being used as a
A person from the Big Island responded to an ad in a Big Island newspaper offering guaranteed loans through “Heartland Credit Union.”
The only problem was that, while Heartland is a real company, the name was being used as a front to run a scam.
After completing and sending applications forms, the victim was informed by phone that the loan was approved and asked to send $850 via Western Union to get the loan. The loan did not arrive in three days as promised and the person could not contact anyone at the company.
“The catch is, you pay a fee, and the scam artist takes off with your money and the loan never materializes,” said Anne Deschene, president of the Better Business Bureau of Hawaii.
To avoid scams, say experts, there are a few things you should do.
“Look for the logo,” said Shannon Hoeckele, vice president of marketing with Kauai Community Federal Credit Union. “A logo isn’t really easy to copy. Also, we never ask for money up front for a loan.”
And don’t be afraid to pick up a phone and call them at their 800 number, Hoeckele says.
“Unlike so many larger organizations, we don’t have any automated systems, so you’ll be talking to a human being with us,” Hoeckele said.
What made this Big Island scam so good was that the organization that placed the ad used the name of a legitimate company, Heartland Credit Union, which operates in several states on the mainland.
“The Credit Union League issued a statewide alert,” Hoeckele said. “It’s happened in 13 other states across the union. Really, what they’re trying to do is steal the identity of credit unions, which are organizations people trust.”
Hoeckele recalls a time a few years back when some members complained that they had gotten calls saying they had won a subscription and that they only needed to read the bottom line off one of their checks.
Bottom line for the consumer: It is illegal for companies doing business by phone to promise you a loan and ask you to pay for it before they deliver.
For more information, contact the Better Business Bureau of Hawaii at 1-877-222-6551 or www.hawaii.bbb.org.
