Want to work from home? How about a job helping small businesses get loans or cash advances?
For people recruited by Money Now Funding (aka Nationwide Lending, among other names), it seemed like a great opportunity. In reality, it was a con. People were left loaded with debt — sometimes tens of thousands of dollars of debt — and no income. Today the FTC announced that the companies behind the scheme have been shut down.
Here’s what happened: scammers called people with a proposal — be our agent and find small businesses in need of a loan or cash advance. Refer them to us, and you’ll get $25 per application, plus 4 percent of any loan or advance they take out. So, on an average $20,000 advance, the company said, you’ll make $800. You also get a $100 bonus just for signing up.
But first, people had to pay $299 to $499 to set up their business. Once they did, they got more calls — this time urging them to pay thousands more for leads or other services.
In the end, it was all a lie. No loans, no income.
Here are some signs this “opportunity” wasn’t on the up-and-up:
- They didn’t give required documents. Under the Business Opportunity Rule, people pushing real business opportunities owe you a document with specifics, and an earnings statement to support any claims about how much you’ll make.
- They ignored the Do Not Call Registry. If you’re on the Do Not Call Registry, you shouldn’t get calls like this. Even if you aren’t, a company should add you to its do not call list if you ask. These guys just kept calling.
- They asked people to pay for the promise of future income. They promised buyers would recoup the investment in no time. Be skeptical anytime someone asks you to pay for a promise. Besides, if these loans were so profitable, why waste time recruiting agents instead of pitching businesses themselves?
