User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


66° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

News

[0] My Saved Articles
Back to all news

Business

Find local businesses
on the KELO Pages!

 

It Looks Like A Credit Card, But It's Not

April 22, 2014, 10:01 PM by Angela Kennecke

It Looks Like A Credit Card, But It's Not
SIOUX FALLS, SD -

Small businesses often are short on cash or credit and in need of funding.  A California company is offering local businesses financing through the mail by sending them what looks like a credit card.

The Ideal Weigh is a weight loss company in Sioux Falls. In the five years they've been in business, the owners have gotten all kinds of credit offers.

"We get credit card offers--American Express, business cards, things like that.  But usually it's just a paper envelope--you open it up and shred it and away you go. This one was a little different in that there was a physical credit card in the envelope," Owner Alex Halbach said.

It's not a credit card, but rather a pre-qualified offer of up to $150,000 in loans. 

"What seemed really strange to me was that this was actually a physical card. It talked about activating it.  If it wasn't really a card, why would I need to activate it?  It smelled fishy to me," Halbach said.

I called the number for National Funding and asked what the fees and interest rates for the loan would be and was told there were 20 different programs and that couldn't be determined until I had been through the application process.  I asked why it looked like a credit card.  The National Funding representative told me that was a marketing tactic.  That it was not a credit card, there was no magnetic strip and it was a program card, more like an "AAA" card. 

It's that kind of marketing that is raising red flags with consumers.  While National Funding uses the Better Business Bureau logo on its advertising material and it is in good standing with the BBB, there are 25 consumer complaints filed against the loan company.

"The complaints appear to be it looks like credit card funding and it's not.  And they haven't looked for any credit and they're pulling a credit report on a company and they didn't want a credit report pulled," Jessie Schmidt with the Better Business Bureau said.

The recent mailings to area businesses are a good reminder to thoroughly investigate any company offering you cash.

"People use them, just like payday loans and things of that nature, but you have to be careful with what you start doing," Halbach said.

If you do get pre-qualified offers in the mail that you don't want, be sure to shred all the documents, including any plastic cards, to prevent them from falling in the wrong hands. 

You can take advantage of the Better Business Bureau's annual shred event this Saturday.

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

View business

You may also like

Former Sioux Falls Executive Investigated For Animal Abuse

8/28/2014 4:15 PM

A former Hot Stuff/Orion Foods President is being investigated for dog abuse in Canada.

Full Story
Westward Ho Country Club Changes Name

8/28/2014 12:56 PM

The Westward Ho Country club in Sioux Falls is changing its name to The Country Club of Sioux Falls.  Members were notified of the change on Thur...

Full Story
Cattle Spooked By LifeLight Noise

8/30/2014 3:58 PM

Farmers say the annual music event is louder this year, and it's causing some problems with their cattle.

Full Story
Sanford And First PREMIER Bank Hosting Concert For Employees

8/29/2014 11:30 AM

Employees from two Sioux Falls employers have an opportunity to see a private concert with two country headliners at the Denny Sanford PREMIER Center.

Full Story
Kraft Recalls American Cheese Singles

9/1/2014 3:59 PM

Before you pack those Kraft American Singles in your child's lunch, you'll want to check the date on the package.

Full Story


Events