TORONTO – A Toronto woman is out $2,000 after a bogus loan company led her to believe she could get a loan to cover medical expenses for her dying mother.

“It shows these people are heartless,” said Ashlee Henry, 30, reflecting on her experiences with a private lender that called itself Community Funds Union.

Henry’s mother Marcia Campbell-Hall was hospitalized in New York during a visit in the fall of 2013. Henry says she didn’t hesitate to want to help but without medical insurance, expenses were quickly adding up.

“It was just me and my mom and I wanted to do anything at that point,” said Henry, fighting back tears during an interview with Global News.

She called her bank and two others but was turned down for a loan, she says. The banks said she didn’t have sufficient credit capability because she and her husband had just purchased and home and had minimal equity.

Story continues below advertisement

Then, she saw a newspaper advertisement from Community Funds Union. Henry says the company was prepared to provide a $40,000 loan. But before getting the money, she says the company told her she would have to pay an upfront $2,000 fee to cover “insurance” on the loan.

At one point, Henry says she and her husband questioned spelling errors on the company’s website and asked other questions.

“They called my husband and said we`re not giving you the loan, you are asking too many questions,” said Henry, who eventually paid the fee by wire transfer. She and her husband never saw a penny of the promised loan despite repeated calls.

In recent weeks, the company has taken down its website and disconnected phones lines.

“There’s always those out there to exploit the most vulnerable,” said Laurie Campbell, chief executive officer of Credit Canada Debt Solutions, which works with consumers in debt. Tweet This

“This poor individual was actually subject to something that is illegal and fraudulent in Ontario,” said Campbell, referring to the Loan Brokers Act.

The act says: “No loan broker shall require or accept any payment or any security for a payment, directly or indirectly, from or behalf of a consumer in respect of a loan or money until the consumer has actually received the loan.”

Story continues below advertisement

Henry realizes her money is gone and she was the victim of a scam. But after seeing a new advertisement from the same company in a local newspaper, she wanted to warn others to be on guard.

“If it feels wrong it probably is wrong because the bells went off, but I was so desperate I ignored them. Do your research; if they can`t answer the questions fully then don`t do it.”