A very nice reader sent in the following offer they received and said, “I will just be grateful if this is not legitimate and it helps me and/or others that are in a financial hardship and get something that seems to answer their prayers and may fall subject to an even worse situation. That in itself is awful! Thank you so much for any feedback.”
Well what I can give you is my observations and feedback based on what I see from the documentation supplied. I would suggest that anyone who wants to check out any company, read How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off. It’s a good general guide.
First, it appears this is an unsolicited offer for a debt consolidation loan. Actually, just a loan in general. Since the offer is unsolicited it would be logical to assume this is an offer to sell you something.
As for the claims in the offer I’m not sure how they would know your interest rates from credit bureau data. It is probably just a guess.
Now here is a strange development. The offer on the front of the letter is for a loan of $40,500 at 3.75% with a payment of $164. According to this online financial calculator a loan for these terms would take about 473 months to repay. That’s 39.4 years.
I have no idea who Sovereign Associates is and the back of the letter says the company is Sovereign Funding. Interesting it is two different names.
According to the back, this offer is not guaranteed and it appears to require that you put up your “property” as collateral (“providing acceptable property collateral.”)
The portion of the offer the reader sent in does not provide physical location information for the company, but the reader is located in Indiana.
According to the State of Indiana website, neither company name is registered to do business in Indiana.
It would require further investigation with the State of Indiana, where you live, to find out if the company is even registered as a lender in Indiana.
If you do decide to pursue this offer further, it seems smart to ask them for the full terms and conditions of the offer so you can review them and make sure they are acceptable, before proceeding.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.