Every payday for me, they withdrew $90 form my checking account. This went on for six weeks 'cos I get paid every two weeks. That adds up to $270. On the third withdrawal, I called them to find out what my balance was, it was still $390.
I deceided to pay the loan in full that same day they withdrew $90, Thinking I've got pay only $300. But my balance was still $390. Meaning I have pay to $390 after they've withdrawn $90 from my accounts that same day, less than 30 mins. ago.
They explained to me that my next withdrawal is goin to be $140, that is $90 plus $50 every two weeks until the debt is cleared. That means I'll end up paying $1110 for a $300 loan.
I feel I'm being duped. Can any of you help me out. I also understand that every state has a different law regarding the profits on payday loans. Can any of u give me the link to the one in massachusettes.
2007-08-23 05:55:44 · 6 answers · asked by isaac a 1 in Business & Finance ➔ Personal Finance
sorry every day i tell folks to stay away from pay day loans and to start a rainy day fund with some of their money but they insist on keeping the internet cellphones and cable and end the same as you -- all you can do is chalk it up as a learning experience!!!
2007-08-26 15:25:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Below is a press release for your state. In states where payday loans are illegal, your attorney general may try and get some type of cease and desist order against internet payday loan companies.
It looks like this place charges $30 per $100 borrowed. First, you overpaid. Typically, you can get a loan for as little as $15 per hundred. Now, the reason they duped you for the extra $90 is that there is a prepayment penalty in many cases for these loans. Whether you pay it back in 1 day or 14 days, it costs the same. Simply stated, there is no rebate or interest adjustment when you payoff early. The argument the lender makes is that it's not a loan, rather it's a service. Well, if it's not a loan, why don't they charge a flat fee? Anyway, this is besides the point.
Typically, most states that regulate payday loans require a simple interest calculation, so that if you pay early, you only pay for the number of days that the loan was outstanding. I find that most internet payday lenders aren't regulated, or they initiate the loan in a state where there are little or no laws on the books against payday lending or they don't have the right software.
2007-08-25 06:25:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That is exactly how payday loans work. Pay the damned thing off immediately, even if you have to go without groceries.
The payments are just interest, nothing is being applied to the principal. Your APR is about 360% and sounds like it's going up.
The loan shark on the corner would probably give you a better deal.
2007-08-23 06:07:24 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
You were duped. But it is perfectly legal for them to do that. Payday loans charge up to 400% interest on their loans. They are the WORST way to borrow money. Consider this a hard lesson learned and stay away from those places.
2007-08-23 06:06:34 · answer #4 · answered by *Cara* 7 · 2⤊ 0⤋
Pay them off and stay away. Then complain to your representatives. These places need to be out-of-business.
2007-08-23 11:18:45 · answer #5 · answered by Gary 5 · 0⤊ 0⤋
man when u signed the contract u should of read it.
2007-08-23 06:03:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋