The Case of the Phoney Loan Broker

A person was convicted of eight charges under the Consumer Protection Act and sentenced to 60 days in prison plus two years of probation. In addition, he was fined $400.

Records filed with the ministry show that this individual was carrying on business by placing ads in Quebec and Newfoundland newspapers, offering loans to those who would otherwise have had difficulty obtaining them and inviting them to call a telephone number in Toronto.

The prospective borrowers were told that their loans had been approved, but that a fee was required. They were then instructed to transfer funds payable to the individual who was convicted. No loans were made. No refunds of fees were made following the standard demand.

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