My brother went in to aquire about an auto title loan for a short time. He was told that on a $4000.00 loan he would pay a $65.00 processing fee and an interest rate of 19% and a monthly payment amount. One person works on the loan paper while the other talks with you and gets the check ready then the one filling the paper work out comes over and has you sign everything folds it and puts it in an envolope the other then hands you the check and your on your way.
2 weeks go by and he makes a payment of $800.00 he gets paperwork back stating he owes $3900.00 he wonders how this could be. 3 weeks later he makes a payment of $900.00. Again gets paperwork showing he owes $3800.00. He finally talks to me and I read his contract which shows he was being charged 215% interest annually nowhere in his contract does it show 19%. And, this is a SIMPLE FEE INTEREST meaning you are paying interest everyday and being charged interest on you interest.
Total Ripoff. He ended up paying this off and the total amount to pay it off was $4180.73 This loan was started on or about 11-25-05 and payed off on 02-01-06 as you can see it cost about $2000.00 for a 65 day loan. Not to mention they only accept Cash, Cashiers Check, or Moneyorder. I wonder how much of this money is being reported to the IRS most payments are done by cash.
Stay Away at all cost from any Title Loan Companies.
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