Here is what we have learned about internet loans from callers to our predatory loan hotline

Friday, January 13th, 2017

Here is what we have learned about internet loans
from callers to our predatory loan hotline



The interest rates are unbelievable and borrowers can’t repay

  •  “Only later did I realize the 6-month $900 loan would actually end up costing me $3,019 at an interest rate of 638%.”
  • “I borrowed $525 …When I saw the contract, I saw that the interest rate for my loan was 478% … I would be paying $111.95 every two weeks for five months.”


 Internet loans are dangerous

“He came across a site that offered quick cash… When you do these, they sell your name and address to everybody and anybody. And I’ve gotten several phone calls from lenders that I’ve never even borrowed from our heard of and they’ve threatened to take me to jail and said they’ve lent me money and they didn’t. I know they didn’t. I don’t even know them. And they know my Social Security number. They know where I work. They know my name and address.” A caller who was quoted in:


Lenders and scammers harass borrowers that get behind

  •  “He (my son) began getting phone calls all of the time. They told him he would get in trouble and that they were going to lock him up if he didn’t pay. He got so scared that he started paying again, and when it was all over he paid for the original $1,000 at least five times over.
  • “I get multiple calls a day from people telling me I will be arrested if I don’t pay. They send me letters and emails, and they have called my family all over the country to harass them too.”
  • “I even got a phone call from someone who disguised the number so that it appeared as the Chesapeake, Virginia Police Department. When I called it back, they said they had no information on an arrest warrant for me.”


 Lenders deceive borrowers

  • “the online application did not have all of the information that came in my contract afterwards.”
  • “I wasn’t in my right mind. So I signed up for my first internet loan, and soon after they started taking money from my bank account. But they didn’t stick to the payment schedule I saw when I applied for the loan. The payments were almost double what I had expected.”
  • I took out a loan from Western Sky… I applied for, $980. But they told me they couldn’t loan me just $980, and explained I would have to borrow over $2,500. I decided to just do that, thinking I could pay a large lump sum back immediately and not worry about the extra amount. But as soon as the loan was completed, the servicer changed to Delbert Services, who would not let me pay more than the scheduled payments.”




Back to News

Comments are closed.