Consumer Alert - Loan Broker Faces 13 Counts Under Fair Trading Act

An Alberta loan broker faces 13 charges of unlawfully collecting advance fees from customers for loans arranged through his Calgary-based business.

Alberta Government Services laid charges this week against Mohamed Dauda Sankoh and his company, AABAC Financial Services, also known as AABAC Group, under the province's new Fair Trading Act. The charges stem from complaints by consumers from across Alberta and are not restricted to the Calgary area.

The department's investigation is continuing and further charges are expected. Consumers who may have had dealings with Mohamed Dauda Sankoh or his company, or those who may have concerns or questions about loan brokers, are encouraged to contact the department's Consumer Information Centre.

This is the first time charges have been laid for advance fee loan brokering since the Fair Trading Act took effect in September 1999. The legislation bans the charging or collecting of an advance fee prior to a loan being delivered to a consumer. The intent of this provision is to put an end to the practice of collecting advance fees from consumers without ever securing them a loan.

Consumers are warned not to provide a fee to a loan broker until after receiving the loan proceeds from the broker.

The Fair Trading Act allows for a maximum fine of $100,000 or up to three times the amount obtained by the offence, or two years in prison, or both. It also allows for a judge to order restitution to victims.

Consumers interested in learning more about the Fair Trading Act, along with other consumer-related topics, can access tip sheets on the Alberta Government Services website or by calling the Consumer Information Centre toll free at 1-877-427-4088.

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