She had borrowed 3000 on August 23. Two weeks later I gave her the money to pay, but the interest had taken the payoff to 4000. She paid 3500. I didn't know she still owed 500. Her first payment was due on Sept. 23. Since she had paid the 3500 in early Sept. she thought she was ok for her Sept. payment. When she went in to pay her Oct. payment, she found that the 500 had turned into 1500. She left without paying and started doing some research on usury laws. Her payment was due on Oct. 23 and they took her car in the middle of the night on Nov. 12. In reality, by paying that first 3500 she had paid in advance and hadn't even missed one payment. This is just too unfair. She is a teacher and spends her days making the world a better place. These people are criminals, but I don't know how to fight them. Surely, there are laws against this--especially given that she has paid 3500 since August 23 and this is only mid-Nov. The original loan was only 3000.
2007-11-14 12:13:15 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The interest they can charge is dependent on the state's laws. There is no simple answer.
Unfortunately, your friend is stuck. She signed on the dotted line before she understood the details of the transaction.
I agree with you, these people are criminals (or no better then criminals) they promise quick money to help you out, then it either costs you a ridiculous amount of money in interest, or your car.
Learn the lesson here. Always read the details, and if you do not fully understand them, ask questions. If you do not like the answer, walk away, quickly.
2007-11-14 13:06:59 · answer #1 · answered by cbmttek 5 · 0⤊ 0⤋
1
2016-09-26 08:35:51 · answer #2 · answered by ? 3 · 0⤊ 0⤋
1. The legal limits vary by state.
2. Title loans DON'T charge interest, they charge FEES. As such the technically are not subject to usury laws in many places.
2007-11-14 13:05:10 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
I've seen them charge up to 100% interest per year. Some of them will charge an up front fee, too. They aren't nice people. They are out to stick you for as much as possible, but almost certainly disclosed all that in the papers she signed (but didn't read) to get the loan.
2007-11-14 15:19:56 · answer #4 · answered by Keep On Trucking 4 · 0⤊ 0⤋
once you play with snakes you will get bitten. If she ignored a cost, she is hosed. Pay them NOW and get out from decrease than it. Then, instruct your daughter in no thank you to deal with debt like this back.
2016-09-29 06:23:49 · answer #5 · answered by ? 4 · 0⤊ 0⤋
the sky's the limit when you are dealing with title loand companies!!!
2007-11-18 11:03:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋