Nathan and Madison Donovan wanted to apply for a loan so that they could buy a car to get to work. But they ended up getting scammed and were left without a penny.
So how did it all happen?
A Car Accident
In 2010, Nathan got into a car accident, leaving him disabled for many years. So, Madison got a second job at a call center downtown, working night shifts.
Since the busses didn't run at night, she needed to buy a car to get to and from work safely. But there was only one problem.
They Applied For A Loan
So, they began searching for loans online and soon found one. Nathan picked his mother, who lived in Nova Scotia as a co-sign person.
But since the couple lived in Moncton and she couldn't come here to sign the documents, Nathan and Madison decided to use an intermediary company.
EastLiberty Finance Group
They found a company called EastLiberty Finance Group, based in New York.
It was also high in the list of results. "It wasn't, like, on the 14th page, and it's getting kind of sketchy. It was on the first page," Nathan told CBC.
It Looked Legit
They knew that the interest was high, but they didn't have another choice at the moment. Nathan explained that the company's website looked "very legit."
"They had licensing numbers, their tax numbers … they sent us their loan papers, and we were able to sign them online, like digitally sign them," he said.
They Didn't Get Their Money
The couple received a confirmation that they would get their money in six hours. However, days have passed, and they didn't get anything.
They called back to see what was going on, and they were told that they had to pay $600 as "further collateral" and buy loan insurance. What did they do?
They Got Scammed
They thought it was strange because they had to pay the amount to Ontario, Canada, through Western Union. “They said it needed to be sent to Ontario to be able to transfer the money to the United States because the company was based out of New York,” he said.
After sending the money, they emailed and called the company but got no response. It was then that they realized they had been scammed.
He Reported The Company
Devastated, Nathan reported the loan company to the Better Business Bureau, RCMP, hoping that justice would be made and other people wouldn't fall for this scam.
They had no idea that the advance fees were illegal in their country. The CEO and president of the Better Business Bureau in Atlantic Canada, Peter Moorhouse, explained that online lenders who demand advance fees are always scammers.
Evil People
"The fact that that was the structure of this arrangement, that's what distinguishes it as a scam," he said.
“I think you have to be a special sort of evil to target people who can’t really afford to be scammed in the first place.”
Everything Is Getting More Expensive
Cybersecurity expert David Shipley believes that the problem starts with families who can't afford to live a normal life.
"I almost walked out of Sobeys the other day with two loaves of bread, and I turned around and went back," Nathan recalled. After getting scammed, he couldn't even afford groceries.
They Took Everything He Had
“I can’t walk away with two loaves of bread — you know what I mean? But other people can just take everything you have.”
Fortunately, a kind local heard his story and decided to help them out.
They Had A Car For Sale
Denis LeBlanc and his wife had their 2007 Volkswagen Jetta for sale for $3,700. But, since they only got low offers, they decided to give their car away for free.
"We had some ideas of what we were hoping to do with the money from the sale of the car," said Denis.
They Gave Them The Car
I said, 'Can we swing it if we don't make money on this or any money at all?' And she goes, 'Yeah — I think we can do that.'"
Now, the Donovans have a new car. "Everything is going awesome. The car is great," said Nathan.
Madison Is Back To Working Full Time
"Madison is working full time, and we are no longer on assistance, which was our goal. We have a renewed sense of hope not only in our financial future but in our fellow man,"
The LeBlancs said it was difficult for their sons to understand the fact that they had given their car away for free.
It Was The Right Thing To Do
"They were like, 'So we didn't get any money for this, Dad?' And I go, 'No, sometimes it's just the right thing to do,' and they were like, 'Yeah, that's a good idea Dad."
Denis went on to say, "I think it's hard to expose our kids to those other realities and get them to understand that you should be grateful for what you have. I think it's up to parents to do a little bit more, myself included."