Scam Or Not ? Private Loan Offering...?

Question

I have been offered a loan from Mr Damon Gatewood of STEVERN LOAN FIRM ([e-mail]) with, obviously, some upfront fees.

I am concerned of course, but on the other hand, this contact has been refered by one of the users of a Yahoo Forum...

Here's part of the text:

LOAN TERMS AND REPAYMENT SCHEDULE:

The loan repayment is based on a monthly basis which consist of the loan capital and interest rate together. Like its written, the loan duration period is for 6 months. So find the interest rate and payment schedule below:
* Loan Amount:-------------------------------------------- $35,000 USD
* Interest Rate:------------------------------------------- $ 0.1% MONTHLY
* Interest Per Month:------------------------------------ $ 10
* Loan Duration in Months:------------------------------ 48 Months
* Total Interest For 48 Months :----------------------- $ 480,00 USD
* Total Interest And Capital:--------------------------- $ 35,480USD

Furthermore be informed that in line with the rules governing this organisation, you will be required to make payment on monthly basis. The loan repayment is expected to be made 48 times making a total pay of $10 USD monthly. This is the total loan amount and interest divided by the loan duration.

LOAN PAYMENT SCHEDULE:
In response to your letter for a Loan Terms and Condition. Charges are made on percentage based on amount of loan applied for. First of all, we have to give you a summary of the Loan Charges which is as follows:

* Legal Fees:---------------------------------------------------- $ 50.00 USD

* Administrative/Processing:--------------------------------- $ 60.00 USD

* Inspection/Verification Team:----------------------------- $ 80.00 USD

* Form Fee:------------------------------------------------------ $ 50.00 USD

* Security:------------------------------------------------------- $ 80.00 USD

* Total:--------------------------------------------------------- $ 320.00 USD

However, payment of Loan Charges can be made in any suitable currency of your choice after conversion. Use conversion rates here: http://www.xe.com/ucc/
Note: Should Loan be called off by you after payment of Loan Charges, SLF will make refund of Loan Charges except Inspection/Verification Charges.

LOAN AGREEMENT/CONDITIONS:

{ 1 } The applicant will start the repayment of loan at the end of every month starting from 3 months after loan has been transfered.

{ 2 } Failure to pay back the loan at this expected date/period, legal actions will be taken against the applicant by our attorney immediately.

{ 3 } Applicant who is unable to meet with the repayment will be given 2 weeks more as a grace period before legal actions will be taken.
In agreement to this, applicant will be expected to send a signed copy of the loan terms and send to us for further documentation. Once this is received, we will inform you when your loan will be approved and ready for transfer.
Note: In case you are unable to print and send a scanned copy back to us, you can as well use your name in place of your signature in agreement and send it back to us.


...................................................
Applicant Sign:

Looking back at the details, I realize that the math does not add up...

If this scammer thinks he's going to get 1$ off me he is dreaming !

Answer 1

Yes, it is a scam. Things that make no sense are scams.

1) Severn loan firm - not a major bank, no mention of what major bank is backing the loan.
2) Fees of $320.00 that they don't offer to take out of the $35k loan. Almost all loans offer to take the fees out of the loan.
3) 0.1% monthly interest. Bullcrap - if they can make more money investing in treasuries, why would they risk it on you?
4) Would you take a loan from some guy over the internet that you met in a Yahoo forum?

-->Adam

Answer 2

Of course it's a scam. Did you apply for the loan? If not, how do they know what interest rate you will be getting? No ligt lending service will ask for upfront fees. What is their corporate address? Are they licensed, ask to see their license and call the state to verify. No one would offer 1% interest! Lending institutions need to make money also and risking $35,000 to make $480 makes zero sense.

Answer 3

Has scam written all over it 0.1% interest, prior fees, not in country, yes referred by a fellow scammer do not walk run away from this. Even the writing of the agreement you can tell is not professional or legal.

Answer 4

If you are genuine you are about to be scammed .You should never give up front fees .