Ontario Woman Seeks $150K Refund Amid Private Lending Concerns
An Ontario woman, Deanna Johnson, is facing significant financial distress after investing $150,000 in private lending. Initially inspired by social media to seek out alternative income streams, Johnson took out a line of credit on her home to fund her venture. Initially, the arrangement appeared successful, providing her with monthly interest payments. However, these payments have since stopped, leaving her questioning the fate of her investment.
Background on Deanna Johnson
Deanna Johnson, a single parent from Whitby, Ontario, has three children and works both full-time and part-time jobs to manage her family’s finances. In her search for additional income, she discovered the world of private lending through various social media platforms, including Instagram, where she learned about creating passive income.
Initial Success and Subsequent Issues
For the first year of her private lending venture, Johnson received approximately $3,000 each month in interest payments. This income provided her with a sense of financial relief, allowing her children to participate in extracurricular activities. However, last year brought challenges when those payments began to be inconsistent and eventually ceased entirely.
Attempts to Recover Funds
In June, Johnson requested the return of her investment but has spent the last seven months trying to recover her $150,000 without success. The funds were lent to Dineene Griffith of Unifocus Investments. Johnson expressed her frustration and concern, stating, “I would like my money back. My $150,000.”
Response from Unifocus Investments
In response to inquiries from CTV News, Dineene Griffith of Unifocus Investments acknowledged the serious nature of the situation. She stated, “We take this matter extremely seriously and understand the concern it has caused.” Griffith indicated that an internal review is underway, and the company is actively working towards resolving the issue with a third-party entity involved.
Expert Opinions on Private Lending
Mark Ting, a financial expert with Foundation Wealth, highlighted the risks associated with private lending. He explained that individuals who seek private loans are often those rejected by traditional banks. Ting noted, “Just like anything, the higher the interest rate you are offered, the bigger the risk.” He expressed concerns regarding investing in private loans and advised caution for anyone considering this type of financial arrangement.
Johnson’s Current Situation
Johnson’s situation has placed a tremendous emotional burden on her and her family. “I have two jobs now. I’m back to square one, and it’s really upsetting for the whole family,” she lamented. Her story underscores the potential pitfalls of private lending, which can lead to significant financial loss.
Conclusion
The case of Deanna Johnson serves as a cautionary tale for those considering private lending. It raises important questions about the safety of such investments and the potential consequences of loaning money to individuals with limited credit options.
