BBB warns consumers of loan scam

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Colorado is one of several states with residents who have fallen victim to an online loan scam, allegedly conducted by a company called Qxlonline.com, the Better Business Bureau reports.

The BBB has given the company an “F” rating.

The way the scam works is consumers seeking loans are asked to provide personal information in order to access the company’s website, according to the BBB’s files.

Some consumers complained that once they provided the personal information, they are unable to enter the site and are directed to call a customer service representative to move forward with the loan process.

The consumers get threatening collection calls about loans for which they applied but never received. Other consumers report receiving loans for which they have not applied and don’t know how the company obtained their information.

The callers trying to collect on the bogus loans identify themselves as attorneys or collection agencies and threaten lawsuits and jail time in order to collect additional funds.

Most consumers report original loan amounts of $200 to $500 and some have been required to repay the loan up to six times the original amount. The most commonly accepted method of repayment is a direct debit from a checking account.  The BBB has had one report where the company required a MoneyGram in the amount of $190 before the customer could receive the loan.

The BBB has been unable to verify the location of Qxlonline.com. The address registered to the website domain is in Australia.  A consumer reported the company is located in Pakistan, but the BBB has not been able to verify that information. One consumer reported other websites associated with Qxlonline.  A betterwhois.com search shows the following companies with the same information as qxlonline:  www.qxlonline.com, www.yellowdale.com and www.mbsloans.com.

Consumers can file complaints with the Better Business Bureau.