Nashville, TN – The Tennessee Department of Commerce and Insurance (TDCI) is joining other state regulators in warning consumers about a national insurance scam targeting consumers shopping for privately funded loans, likely for real estate.
Victims have been identified in three states including Tennessee where a Johnson City man says he lost $18,000 to scammers.
California Department of Insurance Enforcement Investigators identified the scam’s inner workings.
The perpetrators allegedly contact consumers who have inquired online about securing a loan, using the name Val Taylor/Val Taylor Investments (this person is also a victim).
The perpetrators then tell the consumer they can arrange the loan, but the borrower must first purchase a “Loan Payment Protection Insurance” policy that will pay the loan, in the event the borrower is unable to make payments and avoid default.
To appear legitimate, the scammers provide a certificate of insurance that appears to be issued by the California Department of Insurance, includes the Great Seal of the State of CA and bears the name of the borrower. The certificate is FRAUDULENT. Like TDCI, the California Department of Insurance is a state regulatory agency and DOES NOT issue insurance certificates, but rather regulates the insurance industry.
Consumers are reminded that if someone offers to loan you money and requires you to purchase a loan guarantee policy Do Not Send Them Money or Provide Any Personal Information. If you suspect you are the victim of these scammers, please contact the California Department of Insurance Consumer Services Division toll-free at 800.927.4357 or TDCI at 800.863.9117 615.741.5900.