The Tennessee Department of Commerce is alerting consumers about a national insurance scam targeting consumers shopping for privately funded loans, likely for real estate. Consumers in multiple states (including Tennessee) have been victimized by this scam.
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. (We’ve attached a copy to this post.) The certificate is FRAUDULENT. The California Department of Insurance is a state regulatory agency and DOES NOT issue insurance certificates, but rather regulates the insurance industry.
If you have been contacted by anyone offering to loan you money and require 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 contact the Tennessee Department of Commerce and Insurance at (800) 863-9117.