I contacted RBSL via email over a month ago because we were seeking a business line of credit to fund a new venture. I was contacted by one of the sales reps from Unsecured Line (a subsidiary of RBSL) a few days later with the normal pitch about all the services they provided.
The sales rep (B.M.) told me in order to start the process, they required a $329 fee to prepare & review a risk profile to review what we are eligible for. I asked (B.M.) the sales rep-"What other fees are there?" He kept stating there are no other fees. The rep told me that all other fees are taken out of the sum of the amount we are approved for. After some hesitation, I told him to send over the contract so I can review it and get the process started. I received the contract, which was very generic, but the contact also states the fee for the profile and assessment as ONLY $329.
When I received the contract, I noticed the consulting fees were very confusing. It states the fees as: (directly from the contract) "3. Calculation and Payment of Consulting Fee: Client agrees to pay Company Consulting Fees between three and five percent (3 and 5%)of all business loan(s), line(s) of credit, credit card(s) or other financing as follows: Risk Profile Report rating of ninety percent (90%) or higher requires a three percent (3%) consulting fee; a Risk Profile Report rating of eighty to eighty-nine percent (80 to 89%) requires a four percent (4%) consulting fee; and a Risk Profile Report rating lower than eighty percent (80%) requires a five percent (5%) consulting fee."
I emailed the rep to clarify, of coarse, he will not email me back because he wants to do everything over the phone. He explained that the percentages mentioned are based on the risk profile. After they review our profile, they will have a clear understanding of where we fit as far as the above mentioned consulting fees. So I decided to sign up thinking that there are no other fees. The contract does not mention any other charges.
A few days later, the underwriter calls and states that we were in good shape but ther are things that need to be addressed on the credit report to move forward. After a long rambling speech about the benefits of using the service, he said to continue with the program is $2500! They drafted a new contract and said that $500 is due up front and $2000 is due upon completion. He said that they need the money now to move forward. I asked him why the other rep never stated that there were other UPFRONT fees based on the category we would fit in, he claimed the first rep is not privy to this information on what money is required to move forward with funding and our first contract is with the sales dept. DO NOT USE RBSL or ANY OF THEIR AFFILIATES. Their practice is deceptive and their reps are rude and uninformed.
Charleston, South Carolina