Rising scams: Citizens fall victim to brokerage, financial solution companies

Many citizens are falling prey to the greed of some local financial brokerage firms, who exploit desperate individuals facing tough living conditions.

Complaints received by Roya highlight how these companies lure citizens with promises of easy access to funds from financial institutions, such as banks and lending companies, regardless of their credit report issued by the Jordan Scoring Assessment System "CRIF."

One victim shared that he urgently needed a loan of JD 5,000 but was ineligible for bank loans due to his credit report. He approached a company claiming to offer financial brokerage services.

He was informed that the company's services start from JD 5,000, requiring him to sign a contract with a non-refundable commission, regardless of the outcome with the financial institutions. The company stated it would take 10 business days to process the request after signing the contract and providing a copy of his ID and salary statement from the bank.

He signed the contract, agreeing to pay a 10 percent commission (JD 500) of the total loan amount he sought. The payment was split into two parts, with the first due upon submitting the application and the second upon receiving approval for the loan.

Two days later, the company claimed that the loan was approved and requested the remaining payment. However, after paying the full amount, the company started avoiding his calls before eventually informing him that the application was rejected without giving reasons.

When he visited the company's office to demand a refund as per the contract, they refused, and he realized he had been scammed.

Another victim reported a similar experience with a financial solutions company. He sought a JD 5,000 loan and was asked to pay JD 50 to submit an application, along with signing a promissory note for the company’s commission.

He initially found it strange that the company only requested a copy of his ID and salary statement. After paying the application fee and signing the note, he was later informed that the loan was not approved. When he asked for a refund, the company stated the fee was non-refundable and demanded payment for the promissory note.

Despite multiple attempts to resolve the issue without paying, the company insisted on payment and threatened legal action based on the promissory note.

It was noted that the company frequently changes its office location and hires young women to work in the offices, using enticing ads on social media platforms.

The Central Bank of Jordan has repeatedly warned citizens against dealing with local companies that claim to mediate with commercial banks for a fee, stating that licensed banks in the kingdom are prohibited from engaging with such unlicensed companies.

Furthermore, the decision to grant a loan lies solely with the bank, according to its credit policies. The safest and proper way to obtain a loan is by dealing directly with the bank.

Roya's investigation revealed that some of these brokerage and financial solution companies are registered with the Companies Control Department at the Ministry of Industry and Trade under names unrelated to the services they offer.

The Central Bank of Jordan’s instructions and laws for local banks and lending companies are clear and strict, aimed at ensuring they do not face risks, supported by data from "CRIF."

"CRIF" is a company operating under the Credit Information Law, collecting credit data on individuals and companies to provide it to credit providers for assessing credit risks.

Credit information is collected officially and legally from data providers in Jordan, such as banks, leasing companies, as well as non-banking financing companies. The data includes identification details of the individual/company and their credit contracts.

The report issued by "CRIF" contains detailed information on the credit dealings of individuals/companies that have received loans or credit from various sectors.

The importance of the report lies in showing the borrower's creditworthiness and eligibility for the desired credit, making it easier to access financing.