is this allowed???????????????????????????

Question

i barrowed $10,000 3 years ago with interest it came out to be $20,000 (loan company in canada) i have been paying on it for 3 years and had $10,000 payed of so know its down to $10,000 they called me and asked if i wanted to barrow a $1000 for extra spending money , well for being really young and stupid at the time (21 years old) i said yes they combined the 2 loans and when my bill came in a month later thinking that i owe $11,000 ($10,000 + $1,000 i just barrowed= $11,000) just to open the bill to see that it says $21,900 the 3 years i have payed on it down the drain. they started me all over :( if that isnt taking advantage of someone i dont know what is) so really my question is can i fight this or do i just have to go with it and never deal with them again ( i barrowed from them $11,000 and im paying them back after its all said and done $31,900 WELLS FARGO i just want to say thanx

Answer 1

I am not certain I have the details right, but what it looks like you did was re-finance the loan over a long period of time.

The amount you owe depends on how long you take to pay it back.
I think the reason your total went high again is because your time was extended (another 10 years or whatever). You should now be paying less per month but for longer, meaning the interests racks up.

Now, most loans allow early payoff. Find out your terms. If you pay it back faster, you pay less. If you pay it back in the same amount of time that you would have paid the first loan, the total will be similar. Time is money. They have every right to charge interest for all the years they have your money.

ASK THEM WHAT THE PAYOFF IS. Thats the amount of money you would have to pay if you paid it all off right now. That number should be less than the $11000 number you gave although their may be a penalty for early payoff.

You can often renegotiate the loan for a shorter period (more money each month, but less overall, and you can even get a loan from someone else with the timing you want and payoff the first load with that.

Remember loans have three important numbers

loan amount
interest rate
length of time (or number of payments)

When you get a loan you have to understand all three and how it affects the package.

good luck

Answer 2

Yes this is allowed. The Truth in Lending statement spelled out all the terms and conditions. Not reading them or not understanding them doesn't count as a defense.

Go with it and never get another loan from anyone.

Answer 3

Call your local banking regulator. (If your not sure ask a local commercial bank who regulates their activities.) Ask if there is a "Usury law" that limits interest rates.

If you can call a local TV station they may run a human interest story on your situation. They like to run stories about the "little guy" getting taken advantage of by a "Money hungry" business. You might be able to help someone else from getting screwed,

Answer 4

Listen to what ( enginerd ) said. That is correct. If they asked you if you wanted to borrow another 1k then that is what it should have been. In no way should your balance have increased that much unless you didnt quite understand what thier offer was when you accepted it. Sometimes they are tricky like that too.

Answer 5

Unfortunately you basically said to them, "Here, let me slosh some petroleum jelly in my asshole so you can **** me really deep.

You ****** yourself dude, and now the best you can do is be an example to your peers to follow your dumb *** down the same path and get ****** up the *** also. Learn your math idiot...

Answer 6

Too long. Too much informatin. Too many numbers. Too boring. I'm going to bed!
Oh yeah, I have no idea if it's allowed or not. Whatever "IT" is.

Answer 7

That can't be what really happened. What loan shark are you using?