Better Business Bureau issued the following announcement.
As consumers grapple with the personal economic impacts of the coronavirus, those in need may turn to cosigner hiring services to secure much-needed home, car, and student loans. For a fee, such services claim they will find you a willing cosigner. BBB warns that cosigner finding services like CosignerFinder mislead users, advertising that they’ll find a cosigner for you, but in reality, they merely offer access to a social platform where users must find their own cosigner.
According to consumer complaints, users of CosignerFinder allege that the service was not provided as advertised, and customer service is unresponsive to complaints. Of 36 complaints submitted to BBB, 26 were submitted in the last three years. Complaints were submitted by residents of 20 states plus Washington, D.C. and Brazil. Texas residents submitted seven complaints, the highest of any state.
Complaints about cosigner hiring services
One complainant alleged that a similar website, Hireacosigner.com, shared their information with users searching for cosigners on CosignerFinder. A BBB search of website background information shows that both CosignerFinder and Hireacosigner.com are registered by the same business, Creative Minds Company, LLC. “I signed up for Hireacosigner.com in the hopes I could get help with co-signing a student loan. In order to find a co-signer you must also sign up to be one,” says the complainant. “I am now in the database for CosignerFinder.com and I can't remove myself as a co-signer.” Not only were they unable to match with a cosigner, some users report receiving multiple requests for help from others in need.
Customers choose between the $39.99 “Crazy Fast” service to find a cosigner in 48 hours or the $29.99 “Super Fast” option to find a cosigner in one week. Although the business guarantees users will find a cosigner within the time frame they paid for, many complainants say they received nothing at all. Users who did receive leads from the company report receiving broken links and contact information for unresponsive or unwilling cosigners.
“Some people who have lost their jobs due to the coronavirus are now in danger of losing their homes, and they’re looking for resources that will help keep their families afloat,” said Angie Barnett, president and CEO of BBB serving Greater Maryland. “Cosigner finding services may seem like a lifeline to those in need, but they make lofty promises that they cannot keep.”
Services like these prey on financially vulnerable people, wasting time and money that would be better spent on reliable solutions. Cosigners can help people get a loan to pay for college, buy a car or a house, however, it can be hard to find someone willing to take on that responsibility.
BBB offers the following tips:
- Start with family and friends. Those closest to you are most likely to help you out. Because the cosigner is accepting responsibility for your loan if you’re unable to pay, you’ll need someone who is supportive of your goals.
- Your cosigner should have a good credit score. A low credit score or a short credit history is often one of the biggest barriers to taking out a loan. When your cosigner has a proven credit history, you’ll have an easier time securing a loan at a reasonable interest rate.
- Start building your credit score early. Sometimes you simply won’t be able to find a cosigner, so it’s best for you to build your personal credit as soon as you are able. Get a credit card, pay your bills on time and keep your balances low.
- Check with BBB. Whether you’re looking for a reputable lender or searching for helpful resources, you can find tips and reviews at BBB.org.
Thanks to the BBB serving Greater Maryland for their contribution to this article.
Original source can be found here.