The Better Business Bureau is warning Winnipeggers about a potentially shady company that promises a loan and doesn’t deliver.
The company, called ClearPoint Credit, asks people for a cash deposit up front to secure a loan, then doesn’t pay out the loan.
“While looking into ClearPoint Credit, BBB has confirmed that they are not located at the address they provide to customers. Their phone number and email address are no longer operational, and they are not licensed with the Manitoba Companies office or the Manitoba Securities Commission,” reads a statement from the BBB.
“Customers that have dealt with or have been contacted by this company are encouraged to contact BBB or Manitoba Securities Commission. BBB has reached out to this company, but the business has not currently responded to our request for information.
“Since the beginning of June, numerous consumers have reported similar details while dealing with Clearpoint Credit. The loans were immediately approved. After approval, a representative from Clearpoint Credit would call or email the customer asking for money to pay a financial security deposit or insurance costs prior to releasing the funds. The customers were advised that after six months of payments, the deposit would be credited to the outstanding balance, or refunded to them in full.
“After providing payment for these administrative costs, customers never received their loan money and attempts to communicate with the company were unsuccessful.”
The BBB was first notified by US-based company ClearPoint Credit Counseling that something was amiss. The Canadian company has no affiliation with the US company.
In Canada, any requirement to pay before receiving the proceeds of a loan is illegal.