SBA issues warning against bogus notices

The government disaster loans were legitimate, but the false or inaccurate loan default notices that many people have received in recent days are not, the U.S. Small Business Administration warns.

A number of residents in the Gulf Coast region have contacted SBA officials saying they’d received a letter suggesting that foreclosure, auction or eviction actions are pending against the borrower. In the same letter, the company claims to provide services to those in financial straits, according to the SBA.

In a news release, the SBA said it reviewed the loan records for some of the disaster borrowers who received the notices. The borrowers were not in default of their SBA loans, and no action was pending, the agency said.

The alleged services mentioned in the bogus letters include loan modification and adjusted repayment plans.

According to the release, if a borrower is considering using the services, first determine if the loan is in default and verify the accuracy of the notice before responding to offers of assistance.

“The SBA will not tolerate the defrauding of borrowers working hard to rebuild their lives,” said SBA Administrator Steven Preston. “Meanwhile, it’s equally important for disaster loan borrowers to be aware of the scams circulating and thoroughly investigate suspicious offers of assistance.”

SBA disaster loan borrowers who have been contacted by companies offering loss protection services are being directed to contact the SBA’s Disaster Customer Service center at (800) 659-2955 or (800) 877-8339 for the speech and hearing-impaired. Both numbers are available weekdays from 8 a.m. to 9 p.m.

Questions or complaints can also be sent via e-mail to disastercustomerservice@sba.gov.

General questions about repayment of loans may also be directed to the service center.