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A Utah family is sounding a warning about a scam that sucked money out of their pockets, straight to Canada. They say a company apparently just pretending to be in Utah is preying on people in desperate financial straits.
The standard warning is "buyer beware." But in this case, it's "borrower beware." If you're trying to borrow money and a company asks you for big money up front, don't fall for it.
Amy Clyde and her husband were desperate for cash, with bill collectors calling daily. "My husband had lost hours at work, and we had people saying they were going to garnish his already-cut paycheck," she said.
To avoid bankruptcy, the La Verkin family put their rent money on the line. "It makes me very angry, because we got ripped off for $1,250," Amy said.
On the Internet they found the Barrister Group and arranged a $10,000 loan. Barrister asked for advance insurance fees to secure the loan.
"I'm a risk -- we're a risk -- so of course they're going to want something to secure it. It made sense," Amy said.
From WalMart, they sent money orders totaling $1,250 to Victoria, Canada. They've received no loan and nothing but a runaround from Barrister.
"They knew that we were desperate and we were an easy target," Amy said.
There are numerous rip-off warnings about Barrister on the Internet. The Better Business Bureau says many borrowers have been stung.
"Nope, never received the money. And when they call the company, the company hangs up on them. They can't get a hold of anybody. No money," said Jane Driggs, president and CEO of the Better Business Bureau of Utah.
Barrister purports to be a Utah firm, but the address listed is a fancy business complex with no Barrister. We're told that ripped-off borrowers keep showing up looking for what they thought was a legitimate company.
"We've never seen one where they're asking for advanced fees that's been credible," Driggs said.
The episode deepened the Clydes' financial troubles, of course. Now they can't afford the rent on their home in La Verkin, so they're moving in with Amy's parents.
"I feel stupid that we were taken so easily. But yet again, I feel they preyed on that. We were an easy mark because they knew what kind of position we were in, and they really played on that," Amy said.
We tried to contact Barrister through a toll-free number, but they did not return our call.
Nationally, the Better Business Bureau has complaints on 500 advance-fee loan companies. Just in the last year, they've had almost 2,000 complaints.
E-mail: jhollenhorst@ksl.com
