Did you receive a debt consolidation loan mailer from a company called iMerge Financial that looks similar to the one below? They claim that the recipient has been “pre-selected” for a loan that is as low as 4.95% to help lower their monthly payments and eliminate high-interest debts much faster. 

More specifically, the mailer states that iMerge Financial’s loan interest rates can be as low as 4.95% which could lead to $836 of monthly savings.

They also mention that there’s no collateral required to be eligible for the loan and that the recipient’s loan will be funded 24 hours after approval. With this in mind, it’s quite reasonable that an offer like the one above sounds amazing. Therefore, to get to the bottom of things, we decided to do a deep dive on the company to verify the accuracy of their claims and shine light on other information we believe would be useful to know.

We’ll cover everything from the products they offer, their business practices, and customer reviews.

What is iMerge Financial?

iMerge Financial History

After searching online, we quickly discovered that the company was created on 03/08/2020 and incorporated on 12/14/2020. It also seems like their website was created on 03/08/2020 which lines up with the company’s creation date. On that same BBB page, we can see that the company’s physical office is located in Carlsbad, CA.  However, after checking Compstak, a commercial real estate data platform, we were unable to find iMerge Financial listed as one of the building’s tenants. 

The company’s CEO is also listed as a man named Mr. Zach Myers, yet we were not able to find any information on this individual. He is also not listed as an employee under the company’s LinkedIn page. However, on that page, we were able to find the company’s mission statement which states that iMerge Financial seeks to help their clients “understand their options, creating a realistic plan of action, and empowering them to take action for the betterment of their future”. 

As seen by the previously mentioned mailer, one large aspect of the company seems to be the debt consolidation loans that they offer. However, this product is not mentioned in the company’s mission statement and they opt for a much more open-ended approach that doesn’t hone in on what exactly the company does. Therefore, to dig deeper into this, we checked whether or not the company holds a California Finance Lender and Broker license which would allow them to actually underwrite loans. 

As you can see by the picture above, we were not able to find any licenses for the company, signifying that they do not actually offer loans themselves. This leads us to believe that if the company does work with loans, it’s most likely in the capacity of being a middle-man between actual personal loan companies and potential clients. 

This assumption is further supported by the wording of certain sentences on their website such as: “iMerge offers access to loans with low simple interest rates and a set payment schedule”, which insinuates that iMerge only provides access to loans and does not supply loans themselves. Furthermore, the fine text at the bottom of the website mentions that a loan submission from a potential client “does not constitute an offer or solicitation for loan products, which are prohibited by any state law”. This is a little perplexing since iMerge Financial themselves are sending out mailers claiming people have been “pre-screened” for loans. This begs the question of how reliable this pre-screening is and what percentage of people are actually able to qualify for the loans that they were advertised for.

Lastly, we want to highlight that even iMerge Financial states that “Current annual percentage rates (APRs) range from 4.95% APR to 30.00% APR, with the lowest rates for the most creditworthy borrowers”. This gives us a much more comprehensive view of what kind of interest rates you might receive. Although 4.95% is possible, many other factors are considered such as “individual creditworthiness, among other factors like employment, income, and debt-to-income ratio”. This could greatly affect the interest rates that most receive, and it would be smart to ask the company what percentage of individuals actually qualify for a loan at 4.95%.

iMerge Financial Litigation

The next piece of information we stumbled upon was a lawsuit that was recently filed against iMerge Financial. After checking the case’s docket report in PACER, we were able to find more information on the lawsuit background. 

Firstly, the prosecutors allege on iMerge Financial’s mailers, stating that the company “had actual knowledge or acted with reckless disregard as to the deceptive nature of the mailing, the illegal nature of the data used in the mailing campaign at issue, that a portion of the mailers were directed to Ohio consumers (including Exhibit A), and that the solicitation was an attorney solicitation seeking to retain Ohio clients”. Immediately, we can see that this is very troubling if true and should bring into question iMerge Financial’s business practices and whether or not their intentions are truly transparent. 

More specifically, the case describes the interaction that the claimant had with the company. It is stated that “IMerge and Five Lakes advertised a consolidation loan in order to entice [the client] to call on the solicitation, but instead they marketed debt adjustment or debt settlement products and services. This is the classic and illegal “bait and switch” method of marketing”, “IMerge and Five Lakes could not legally lend [the client] the loan as advertised in the purported firm offer of credit as neither have lending licenses in Ohio that would permit them to do so”. 

Until now, we have been led to believe that iMerge is simply a debt consolidation loan company. However, this new information points to the fact that they might also be acting with different intentions in mind. It also ties back to what we previously mentioned about how the company does not have the necessary licenses to issue loans. From what we can sense, it seems to be incredibly important that when working with iMerge Financial, you inquire about the product you are receiving and do not contract with any program that you may not fully know the details of. 

iMerge Financial Reviews

Now that you have gained some insight into iMerge Financial’s history, product offerings, and business practices, we’d like to explore the customer reviews available online. This will provide you with an understanding of others’ experiences and what you might be able to anticipate if you choose to work with the company.

BBB

We first checked the company’s BBB reviews where they have 81 total reviews with an average rating of 4.53/5. Furthermore, they are rated A+ and have been BBB accredited since 5/26/2023. Below we’ve highlighted a few recent views as an example of what individuals are saying about the company. 

In general, reviewers mention that the representatives they worked with were patient, knowledgeable, and that in general, the company was able to help these people sort through their debt.

Finder.com

The next place we checked is actually a website called finder.com which compares different product categories within personal finance. On this website, they have a very detailed and well thought out review on iMerger Financial. Below, we’ve highlighted a pros and cons list that the article put together and that we feel mentions most of the important points related to iMerger’s business. 

With that being said, we recommend reading the entire article as it will provide you with another perspective to better create a well-informed opinion on iMerger. 

Google Reviews

The last place we checked for reviews was the company’s Google Business page. On here, they have a total of 166 reviews and are rated 4.6/5. Once again, we’ve highlighted a few reviews below that will help give you a perspective on the different experiences that people have had with iMerge Financial. 

The most recent review is not a positive one and the individual mentions a common theme that we previously discussed when researching the company’s history. This person mentions that apparently, iMerge Financial “engages in bait-and-switch advertising” where they were not given a debt consolidation loan but rather pitched a debt relief program (another term for a debt consolidation program).

The next review we saw is much more positive and even mentions that this individual was able to reduce their bi-weekly payment from $2,300 to $430. They also highlighted a representative from the company who was very helpful and allowed them to feel at ease. 

Important Distinction: Debt Consolidation Loans vs Debt Consolidation Programs

Let’s chat about the difference between debt consolidation loans and programs. Even though it may seem similar to a debt consolidation loan, these two are entirely distinct. Therefore, we’ve created a write-up to help explain the difference between the two.

To begin with, we will discuss debt consolidation loans. These loans are specifically designed to have a lower interest rate than your other debts, enabling you to consolidate and pay off high-interest debts with one low-interest loan. This assists in reducing your interest payments, saving you money and reducing the time spent paying off debts. 

On the other hand, debt consolidation loan programs involve falling behind on debt payments for a considerable period. This allows the debt consolidation company to bargain with your creditors and resolve those debts for a reduced amount, usually about 50% of the original balance. Furthermore, the debt consolidation company usually applies a fee of approximately 25% of the total debt amount for their services in this process. Once everything is completed, you should anticipate saving approximately 25% off the total amount of your debt. Although it is a net positive result, there is a risk when dealing with debt consolidation companies that are not upfront about their costs and processes. This may result in you having to pay hidden origination fees, balance transfer fees, closing costs, and annual fees, reducing the amount of money you save. Ultimately, it is crucial to bear in mind that while your monthly payment could decrease, the extended duration of the loan may result in increased overall interest payments.

Closing Thoughts

After having read this article, hopefully you have a better understanding of iMerge Financial and whether or not you might want to work with them. Therefore, in general, it is extremely important to understand what product you are receiving. 

We always recommend that you take the time to ask the right questions, consult with other companies/individuals, and never make yourself feel forced to make a decision on the spot. We also recommend that you continue reading more about iMerge Financial to gain even more insight on the company and hopefully make the most informed decision possible.