I entered into an Auto Title Loan with them on my 95 Lincoln Towncar for the amount of $2,500. The female customer rep, at that time, indicated to me my payments would be $106.per month. I thought that was very low and figured that I would probably be paying mostly interest at that rate and end up paying a whole lot in the end. I asked if I wanted to double or even triple my payments to pay it off early and she said of course. She said they encourage that so as not to incur a long loan.
To make a long story short, I made my first monthly payment the following month as required to the same customer rep. The second month, I was given a phone call reminder by another female customer rep. and after some small talk about what time I would be in, she asked how much would I be paying when I came in. I answered that I was bringing $106.00 0r maybe $150.00.
She stated that my monthly payments were $500.00 per month and that I would be short. After discussion she said although $500. is not written as a monthly payment in the contract, it figures out to be that much according to the 204% APR or .056% per day rate. and I should have calculated that out before taking the loan.
I was devastated and felt deceived because I never heard of a contract that doesn't plainly print out the monthly payment. Bottom line is that I'm stuck with a loan that adds $450.00 interest per month to the balance amount. Last I checked,after paying four 106.00 payments, my bal owed was about $3,700 and my car was retrieved during the night.
Gregory
Hampton, Virginia
U.S.A.