An Ontario woman wanted to make some extra money by doing private lending, so she took out a line of credit on her house.
It was going well as she was getting interest payments each month. However, they’ve now stopped, and she’s worried her $150,000 may be gone.
“I thought it was a relief. This is financial freedom, I thought,” said Deanna Johnson of Whitby, Ont.
Johnson is a single parent with three boys. She has a full-time job and works part-time as well, to pay the bills. That’s why she was interested when she heard she could earn income by providing loans.
“I found out about private lending through social media. I watched some Instagram reels on how to get a second income to work for you,” Johnson said.
After going to her bank and taking out a line of credit, she found a company to loan out the funds.
Johnson says the first year went great, receiving interest payments of $3,000 a month.
“It was a financial relief, some wiggle room. My kids could pick up some extra sports, so it was really working for me,” said Johnson.
However, she told CTV News that last year, the payments started to be late and then stopped completely. It was in June when she asked for her funds to be returned.
Johnson said she’s been trying to get her money back for the past seven months without success.
“I would like my money back. My $150,000,” Johnson said.
Johnson gave the funds to Dineene Griffith of Unifocus Investments.
When CTV News contacted Griffith, she said in a statement, “We take this matter extremely seriously and understand the concern it has caused. We are currently conducting a full internal review and are actively pursuing resolution with the third-party company involved.”
“Because this involves confidential client information and an ongoing investigation, we are unable to comment on specific account details at this time. Our priority is protecting our clients and ensuring all appropriate steps are taken.”
Mark Ting, a financial expert with Foundation Wealth, told CTV News that people who need private loans have usually been turned down by banks and other traditional lenders.
“Just like anything, the higher the interest rate you are offered, the bigger the risk,” said Ting.
According to Ting, investing in private loans makes it risky, and anyone considering loaning out their money needs to be extremely cautious.
“I would not be comfortable myself, and I would not recommend it to anyone unless they are extremely wealthy and they could afford to lose that $150,000,” Ting said.
As for Johnson, she told CTV News she’s stressed and frustrated, and she’s worried the $150,000 she lent out could be gone for good.
“I have two jobs now. I’m back to square one, and it’s really upsetting for the whole family,” said Johnson.
