Business ProfileforLangridge Financial

An investigation by the Better Business Bureau Serving Metropolitan New York and the Better Business Bureau Serving Southern Alberta and East Kootenay has uncovered evidence of an advance fee loan scam by Langridge Financial, which claimed to have office locations in Calgary and New York.

Five individuals have filed reports since September 30, 2018 with BBB, noting losses ranging from $558 to nearly $3,000. In all instances, consumers were required to pay advance “fees” for insurance or because of low credit scores in order to receive their loans. Consumers reported they did not receive promised loans and have been unable to recoup fees remitted.

The Langridge Financial company’s website was created in September 2018 and remained live until November 6. It promised consumer loans regardless of age, income or credit. The company claimed that the "borrower" will receive the loan once the advance fee is paid.  

Langridge Financial failed to respond to email requests sent by BBB Metro New York requesting clarification and substantiation of the claims on its website. Mail sent by BBB Metro New York to the address that was listed on Langridge Financial’s website was returned by the U.S. Postal Service marked as “insufficient address.” Mail sent by BBB Serving Southern Alberta and East Kootenay was also returned. No results were found in a search of Canadian records as to the company being incorporated or holding a trade name.

Claire Rosenzweig, President and CEO of BBB Metro New York, notes, “Fraudulent advance fee loan companies post ads on social media sites, and may have slick, convincing websites.” She adds, “You should not have to pay an advance fee before you receive a loan – this is a sign that something is wrong. Always research any loan company, particularly if the company reaches out first by phone or email.”

Mary O'Sullivan-Andersen, President and CEO of the BBB Serving Southern Alberta and East Kootenay says there are many versions of this scheme, ranging from home loans to emergency loans for paying bills. "Typically a scammer will ask for an advance payment for purposes such as ‘processing’ or ‘insurance’ or some other reason,” she says. “Often the scammer will require that payment be made by wire transfer or some other hard-to-recover method. But after the fee is paid, the phony loan company stops responding and the consumer can’t get a refund.”

It is a violation of New York State law for any business or individual to ask a consumer to pay in advance in order to receive a loan or a credit card. Advance fee loans are unlawful in Canada.