Pawnbrokers are federally regulated... So when I pawned my car, the "rushed processing" of my paperwork failed to alert me to the fact that, the amount that I borrowed was inaccurately portrayed on the pawnticket... The interest rate was absurdly high, and I believe also illegal... Then, the three month maximum potential time period of accrueing interest, was totalled from the first day... Then combined together with all pertinent fees... THAT figure was then doubled... THAT figure was then fraudulently listed on the pawn ticket as the "FINANCE CHARGE"... And then further interest accrues on THAT!!!
In other words, these guys took my car... And the title... Added an extra three hundred dollars to the amount that I actually borrowed... Put that falsification on the pawn ticket as the "amount financed"... Doubled the interest rate... Doubled the fees... Combined both of these figures to come up with a "finance charge" that was totalled for three months worth of accrued interest time... From the first day... And then were charging me interest on THAT!!!
They also required me to leave my signature on file for their records (in case I lost my pawn ticket). At which point I was presented with an open note book showing a page that had several signatures already on it. I added mine.
When I returned later, to correct the "amount financed", they said that the added $300.00 was actually a fee that was charged to all customers that had their cars picked up, rather than delivering them to the premises personally. When I pointed out that this charge was never discussed, agreed to, or even MENTIONED during the transaction, and that I did not, nor would not authorize it... They re-presented me with the signature notebook. Except now... The space that I had signed, had two or three lines of someone else's handwriting directly above it. And so did all the other signatures on the page. This, apparently, was my written authorization of any and all fees they might include... And they flatly denied that those lines of writing were, in actuality, added to the page "after the fact", and after I had already left the premises!!!
I borrowed $1500.00 dollars. They jacked that up to $1800.00 dollars. They tallied the "finance charge" up to approximately $800.00 dollars. And unless I can come up with $2600.00 dollars, in cash, within thirty days time... More interest is charged... And again thirty days later... Until thirty days after that... At such time they will call to inform me that the loan time-period has expired... And if I do not pay in full within the final ten day grace period... I forfeit ownership of my 1999 volkswagon beatle... To them... And they shall proceed to auction it off. And I am not the only one, I assure you!!!
Since then, I happened to meet the neighbor of a friend of mine... Who also apparently had taken out a loan against the value of his car. He did not pawn it, however, but instead had borrowed from a private company. The terms of his agreement were such that he had five years to pay off his loan in biweekly installments. He also had retained the right to drive his vehicle during the course of the loan period, with the stipulation that he install an electronic tracking device to his starter switch, that would enable the lender to deactivate his ignition via radio signal, if the payments were not received on time.
He borrowed five thousand dollars. His payments at the end of five years add up to a total sum of over SEVENTEEN THOUSAND DOLLARS!!! I requested to see the contract, and upon examination, I found that he had been charged $750.00 dollars just for the application fee!!! ALSO... Were he to be even one day late on any single payment, the loan becomes payable in full, immediately{including interest) or he loses the car, and is not entitled a refund of any portion of the loan that he might have thus far already paid!!!
The company name on this contract was CITY LOAN. And the address and phone number of the company were the same as the ones on my pawn ticket!
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