Did you receive a mailer from Loyal Lending (like the one below) pre qualifying you for a debt consolidation loan for just over 3.89%? Is this legitimate? Is this a scam or too good to be true?
I became aware of Loyal Lending from my call with a person I will name John. John received the mailer above, and applied. Per the representative, he did not qualify for his pre-approved loan, but instead qualified for a debt consolidation program with Level One Law.
The representative got him connected with another company that would handle the program, so my initial hypothesis is that Loyal Lending is a marketing company that markets something called debt settlement (also known as debt consolidation programs). This is not to be mistaken or confused with a debt consolidation loan where proceeds would be sent to your bank account. Now, if you are looking for a debt consolidation loan, there are 3 debt consolidation loan companies that we have vetted that 1) Only do a soft check to check your credit 2) Do not charge prepayment penalties. With debt consolidation loans, it may be helpful to check your rate from multiple places to get the best rate. If you aren't able to qualify, then some individuals look at debt settlement.
If you are unfamiliar, Debt settlement is the process in which a third party negotiates and settles with your creditor on your behalf. The goal of a debt settlement firm is to find a lower payment that will fully satisfy the debt that you owe. So, a debt settlement may try to settle a $10,000 credit card balance for $5,000. This can provide ample savings and a potential lower monthly payment.
I was the previous CEO of a debt settlement company, and I believe debt settlement can be a good option for some, but not for others.
Now, if you are struggling with debt and wondering what to do next, we built a free, unbiased debt options comparison calculator (not even an email address is required) that provides a wide range of debt options that may be able to fit your budget. The data is personalized to your income and expenses, so you can get accurate costs, pros and cons, and options.
Lets cover Loyal Lending's history next.
It took some digging to actually find history on Loyal Lending. Firstly, I could not find a BBB page for Loyal Lending. Next, there are reviews for a Loyal Lending on Google, but when you visit the website, you will find that you will be directed to a different Loyal Lending focused on mortgage loans, not credit card consolidation like the Loyal Lending Mailer above. So, the Google reviews appear to be for a different company.
Next, I went to Wayback machine, and found that the website didn’t even appear to exist. For example, check out the Wayback machine screenshot from March, 2022, which shows that the domain was for sale for $2900.00.
Next, when you check the page transparency page on Facebook, you’ll notice that Loyal Lending’s social media page wasn’t created until September 26, 2022.
Finally, when I looked at the address from the mailer, I noticed that it’s just a PO box, not a business address. So, I could not find much history for Loyal Lending.
At Ascend, we believe that debt settlement may be a good option, but it’s only in the context of understanding all of your options and understanding the cost of that option. This is exactly why we built a free debt settlement cost calculator so that you are MOST informed. While the calculator cannot provide your exact Loyal Lending debt settlement plan payment, it provides an estimate based on your personalized financial data and allows you to compare debt relief to other options.
Debt settlement can be much less expensive than your current obligations, but it is a debt relief option, meaning that there are debt settlement pros and cons associated with it. For example, while debt consolidation loans can help increase your credit score, debt settlement can hurt your credit score.
Let’s look at the Loyal Lending reviews to help you make the most informed decision, starting with BBB reviews.
I could find a BBB page for the website linking to Loyal Lending, but only 3 different companies called Loyalty Lending, Loyal Loans, and Loyalty Funding, but each lead to different websites.
I could also find no other reviews for Loyal Lending. As stated before, I found reviews for another company called Loyal Lending, but it’s related to mortgage loans, not debt consolidation loans. Also, the website has an entirely different logo.
It’s unclear to me whether Loyal Lending is a legitimate company or a scam.
From my interaction with John, it seems like Loyal Lending is just a marketing service that refers out clients to other firms that practices debt settlement.
One question I have is whether Loyal Lending actually ever refers people to debt consolidation loan companies or if anyone gets a 3.89% interest rate. Or, potentially, it markets to people who can’t qualify for a loan, but does qualify for a debt consolidation program, which is 100% different.
While this may not constitute a scam, it may be a deceptive marketing tactic.
Also, while it does seem that BBB has connected companies like this together as the same, it does not make sense why a marketing company would reinvent itself each time to send mailers out.
If you need debt consolidation, let’s discuss options next.
If you can’t get a consolidation loan from Loyal Lending, what are your options? Are you putting more on your cards each month than reducing them? Do you have a high debt to income ratio?
The challenge is that you may qualify for a debt consolidation loan, but the interest rate could be 29.99% or the loan won't consolidate all of your debt.
As stated above, if you have debt that is unaffordable, we built the free debt options and costs calculator below that allows you to compare options such as non-profit credit counseling, debt settlement and debt payoff planning. If you are already in financial hardship, the calculator also allows you to understand bankruptcy. No email address is required unless you'd like some additional free assistance.