I took a loan with Red Stone Cash for $400. They took out $140 every two weeks for two months and the principal never decreased. They claim I still owe $540 when I've paid $560. When I spoke with their representative, she said "Because that's what it said at the beginning, " i.E., that any money taken out would only be applied to the finance charge unless I specifically called and said otherwise. That was never clearly communicated.
Red Stone Cash is owned by Martin A. Webb, with a disclaimer that it is part of the Cheyenne River Sioux Tribe in order to avoid state laws (ie you must have a license to offer a loan of more than 8% in Colorado. They do not.) As a result, the Colorado Attorney General has filed a lawsuit against Martin A. Webb. Colorado Attorney General files Lawsuit against South Dakota Lender
There are plenty of other lawsuits out there - Maryland, New Hampshire, FTC - just Google his name and you'll see.
If you've been taken advantage of by this company, you need to know your rights: The first thing you need to do is go to your bank and close your bank account and open another one to stop them from taking your money. Next, read up on the Fair Debt Collection Practice Act on Wikipedia. It says that you can send them a letter (send it certified) stating that you dispute the debt and refuse to pay it and they are not to communicate with you any further. If they do contact you, they are liable for up to $1000. Then file a complaint with your state's department of banking.
If we don't put a stop to this, they will keep taking advantage of people.
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