"It's the age of the internet, and I get all these emails," said Tremaine. He's approached his bank for funding and is hoping for government assistance on rent, but said he also researched lending options online to help him cover three months' rent, or about $15,000. Revenue has since plummeted by 75 per cent, he said, while rent and overhead are constant.
They moved into larger and more expensive rental space at the beginning of March, just as the COVID-19 pandemic hit hard in British Columbia. "Business grew like crazy from when we started," said Tremaine. Tremaine and his wife, Sari, run Best Barks Doggie Daycare, which opened in June 2019. "I went to their website to see if they were credible, and it all seemed pretty reasonable," said Tremaine, who says he also spoke with a representative and "they do a good job of presenting themselves." Terry Tremaine and his wife, Sari, run a dog daycare, but business has been down significantly since the pandemic began. It also says the credit protection "will be fully refunded after eight-12 monthly payments on time."Īlthough the woman said she was leery, the representative with whom she spoke on the phone convinced her to move forward with it. The contract states: "When your credit protection payment(s) have been received your loan will be released within one-two hours and available in your account." The Ontario woman shared a copy of the loan agreement sent to her by Belford Capital Service, based in Ottawa, according to the company letterhead. "I was desperately trying to ensure that my family's financial states were in order and that I could provide adequately for my children," said the woman, who found the website online while searching for financing options. That's what happened to an Ontario woman who says she lost $3,950 after sending it by e-transfer in March to secure a $20,000 loan to cover her debts and is in the process of going through a divorce. She isn't being identified because she fears her story could affect her job. St-Cyr said Canadians are being enticed by these "advance-fee loans" because they often offer rates that may be higher than banks but much lower than short-term payday loans, which are allowed to exceed the legal limit of 60 per cent, or longer term instalment loans, which can reach an annual percentage rate (APR) of 46.96 per cent.ĭuration 1:03 Better Business Bureau says lenders offering illegal advance fee loans often disappear. "It's just a nice name they give for an advance fee. And it's not legal whatsoever in Canada to ask for any type of fee before receiving your money." "You should never pay upfront fees, no matter what name they call it," said St-Cyr.Ĭompanies sometimes use terminology such as "administration fee" or "credit protection" to disguise the illegal charges, she said. The Better Business Bureau is warning consumers to stay away from "advance-fee loans," which require consumers to pay money upfront before receiving any funds. These fees are illegal in North America. "They are going to be looking for loans." "Scammers are taking advantage of the pandemic because they know that a lot of Canadians right now - and in the weeks and months from now - are going to be strapped for cash," said Jessie St-Cyr, a media relations officer for the Better Business Bureau of eastern and northern Ontario and the Outaouais. Online money fraudsters are ramping up an old scam, luring struggling Canadians in the COVID-19 era with bogus loans that lead to more financial woes, CBC News has learned.
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