The Better Business Bureau of Southwest Missouri on Aug. 17 issued a warning to consumers about doing business with Rock Lake Funding, a mortgage company reportedly located in Branson. The BBB investigated the company after numerous consumer complaints, according to a news release.
The bureau began receiving calls on July 18, and has received nine inquiries in the past four weeks, according to Jeshua Burgess, accreditation specialist with the BBB of Southwest Missouri. The license bureau of the city of Branson also has reported customer inquiries about Rock Lake Funding, Burgess said.
Consumers report receiving phone calls claiming to have buyers for their time-share properties with selling price offers well above what the properties are worth. Consumers are told the buyers are in the process of securing funds from a mortgage broker, and calls are followed up by Rock Lake Funding, an organization that represents itself as the mortgage broker in the sale of their property. Consumers are told Rock Lake's preapproved buyer will pay half of the closing costs, and they are asked to pay the other half of the closing costs via a Green Dot MoneyPak card, with promises of being reimbursed after closing. Consumers are told their closing cost portion is at least $700 or more.
BBB's investigation revealed that the address provided by the company to consumers does not exist, and Rock Lake is not licensed by the state of Missouri as a mortgage broker. Phone calls to the company are not answered or phones are disconnected. According to the BBB, the company's website states it assists consumers with time shares, boats or recreational vehicles. A Google search on Aug. 20 by Joplin Tri-State Business Journal staff indicated there was no listed website for the company.
Green Dot MoneyPak cards, available for purchase at major retailers, were identified in May 2011 by the BBB of Southwest Missouri as devices used by fraudulent companies to receive funds from southwest Missouri consumers.
"These types of cards are not traceable," Burgess said. "They do not offer the level of protection against fraud that a bank debit card or credit card with a major company provides. Cards that are tied to banks or major credit card companies have not only gone through a qualifying process but also have tractability between institutions.
"If you use a purchased money card for financial transactions online or over the phone, you must consider it the same as handing the retailer cash."
The BBB of Southwest Missouri offers the following tips to consumers:
- Do not agree to anything via the telephone until you have had a chance to check out the company.
- Ask the person to send you written materials.
- Ask for references, including address and phone number, and then contact them.
- Ask where the company is located and in what states it does business.
- Ask if the company's salespeople are licensed to sell real estate where your time share is located. If so, verify this with the state licensing board.
- Find out if the company charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?
- Be wary of companies charging an advance "appraisal" fee for services. Consider opting for a company that offers to sell for a fee only after the time share is sold.
- Contact the Better Business Bureau, state attorney general's office and local consumer protection agencies in the state where the company is located to find out if complaints have been logged against the company.
