On January 21, 2009, I submitted an application for a Business Line of Credit with a Professional Consulting Firm called Borsuk, Fox & Associates, Inc. I spoke several times with my consultant, Jeremy, discussing my desires to obtain a Business Line of Credit for my new Business. He even sent me an e-mail describing what my terms in the Line of Credit would look like and what the monthly fee might be if I used the entire line.
The interest rate he described was Prime + 1 = 6.5%. He told me that I had been approved for $200,000 and had me fill out the applications for his company and EZUnsecured, and pay a fee of $1950 for their services. I was told that $1000 would go to him and $950 was due to EZ Unsecured, for the cost of obtaining personal and business credit reports, reviewing them and underwriting.
He also discussed the fact that I would be charged a 4.9% success fee by EZUnsecured, but that they were running a special program and would only charge me 2.9%, and told me to cross out the 4.9% on the application and put 2.9% and then initial it and fax it to him. He said that his portion for a success fee would be 2.0% after I received any funds. I mailed him a money order for $1000 and filled out a Credit Authorization form and wrote on the form the amount authorized was to be $950 faxed it to him.
I submitted all papers to him and never spoke to anyone at EZUnsecured. He did all of the contacts with them. He told me that I would be receiving a call from the person working on my file introducing themselves and going over my application me. I never received that call, but did receive an e-mail from Darren Smith at EZUnsecured on Jan 7, 2009, thanking me for applying for a Business Credit Line with them and another one on Jan 24, 2009 thanking me for taking a step towards obtaining the capital needed for my business needs to succeed.
So clearly there was no misunderstanding that I specifically wanted a Business Line of Credit. On Feb 6, 2009 I received an e-mail from Pamela Diaz saying she was working on my file and wanted to speak with me before she submitted my application to lenders and to call her. I called the same day, got an answering machine, left a message and waited for her to call back. She never did. However, later that day I received an e-mail from Pamela Diaz instead of a phone call stating that the previous e-mail was automatically generated and she just wanted to let me know she was working on my file.
On Sunday February 8, 2009 I received an alert from my bank stating that a charge of $2175 had been placed on my account by Jade Rock Enterprises LLC. I was really worried and went to my e-mail account to e-mail Jeremy about the charge, until I saw another e-mail from Pamela Diaz saying I had been approved for a $75,000 AMEX GOLD Card and that they had already charged my credit card on file for a $2175 success fee. I thought it was odd that on a Sunday when banks & offices are closed, they would be charging my card. The next day I received an e-mail from Amercan Express congratulating me on received a $75,000 Platinum Card.
A few days later Darren Smith called me and told me that he was working on two more lines of credit for me but this time he would have to increase his success fees from 2.0% to 7.9% because his special program would no longer.I thought it was odd again that he raised his fees past what was actually on the application I signed and right in the middle of completing my lines of credit. I told him I would have to speak to Jeremy about this and he said, well I'll see what I can do, but I never heard from him again and I spoke to Jeremy about the change. He says he was not aware of the increase and would contact them.
At first I was excited but decided to call American Express a few days later to find out the terms of the card, which I still thought was a Business Line of Credit. They explained the terms to me as a not a line of credit and that it needed to be paid in full each month and that the interest rate was $15% with a yearly $50 fee. I notified Jeremy, to ask why I had not received a line of credit and that the interest rate was higher than any credit card that I have ever had.
He said he would contact his contact person to find out what happened. In the meantime, I later received the card and noticed that it did not have my business name on it but my personal name, so I called American Express back and they informed me that it was not a Business Card at all but a personal credit card which I did not want. I immediately told them to cancel the card and contacted Jeremy again. He says he was waiting for a response from Darren Smith.
I e-mailed both Darren Smith and Pamela Diaz to ask why they had gotten me a personal card, and let them know that I had canceled the card and wanted my money back and also that I had never authorized them to use my card for further charges. I told Pamela I would dispute the charges. I never heard anything from Darren Smith. Pamela Diaz was very nasty and said she always wins the credit card disputes and that they have a right to provide personal credit if they choose.
They never gave me a chance to review with them the terms of the credit they were trying to get for me. How can someone decide they want you to have something that you did not apply for and clearly have e-mails to show that they knew what I was applying for and never contacted me to say "we can't get you business credit but we can get you personal credit. They all led me to believe that could get me a Business Line of Credit. Now they have all taken a total of $4125.00 from me and I have no Business Line of Credit or Business Credit at all. I want a refund.
She refuses to credit my account, Jeremy sent me an e-mail that he wrote to them, but so far he has not helped me to get my money back and has not called since I told him about the discrepancy, only e-mails apologizing and saying "Wow, I don't know what to say".