• Report: #679540

Complaint Review: 500FASTCASH

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  • Submitted: Thu, January 06, 2011
  • Updated: Thu, January 06, 2011

  • Reported By: Dee — Palm Desert California United States of America
500FASTCASH
Internet United States of America

500FASTCASH Contract says amount financed $300.00. Annual percentage rate 405.56%.1 payment due next month of $390.00. took 4 payments next four months optioned of $90.00 per month the next four months. Then debi, Internet

*Consumer Suggestion: Unfortunately, that's how these companies work

*Author of original report: Correct Payments Taken

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This is copy of finance terms:Your Payment Schedule will be: 1 payment of $390.00 due on 2010-08-03 , if you decline* the option of renewing your loan. If your pay date falls on a weekend or holiday and you have direct deposit, your account will be debited on the business day prior to your normal pay date. If renewal is accepted you will pay the finance charge of $90.00 only, on 2010-08-03 You will accrue new finance charges with every renewal of your loan. On the due date resulting from a fourth renewal and every renewal due date thereafter, your loan must be paid down by $50.00. This means your Account will be debited the finance charge plus $50.00 on the due date. This will continue until your loan is paid in full. *To decline the option of renewal, you must select your payment options using the Account Summary link sent to your email at least three business days before your loan is due. Security: The loan is unsecured.
500fastcash instead debited $90.00 the first four months, then November debited two payments amounting to $145.00, then December debited two payments all togwether amounting to $145.00, then January 2011 two payments all together amounting to $125.00, then February they plan to debit two payments all together amounting to $110. Then in march they plan to debit two payments amounting to $110.

This aggreement also stated they were only taking payments four months. That is all that is stated. They took two family members names and numbers for references but i imagine that me putting a stop to this could cause suffering for family members.

I am on disability. I am so sorry I accepted this. i never imagined it would be this extremem.I am finding other companies taking extreme measures over the top with customers other than agreed. I am stopping this with my bank. i do not have money to give away.


This report was posted on Ripoff Report on 01/06/2011 12:21 PM and is a permanent record located here: http://www.ripoffreport.com/r/500FASTCASH/internet/500FASTCASH-Contract-says-amount-financed-30000-Annual-percentage-rate-405561-payme-679540. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
1Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

Unfortunately, that's how these companies work

AUTHOR: Angie - (United States of America)

These companies charge very high interest rates for their loans, and their payment plans don't seem like they do much. They are spelled out in the fine print, but it's not always easy to understand.

Here's what happened. You signed up for a loan, and borrowed $300. From there, you have two options--one is to pay $390 on the given due date, and be done with the loan. That's repaying the original $300, and the $90 is for interest/fees. The problem is, you have to jump through a few hoops in order to do this option. It generally involves filling out information on their website, or getting in touch with them by phone. Neither of these are necessarily easy, because they don't want them to be--the sooner you pay off the loan, the less money they make.

If you do not jump through these hoops to pay off your loan with the first payment, it is assumed that you want the second option, which is to renew your loan. This is saying you will pay the finance charge, but not the original balance. You are just paying the fee, and putting off paying on the principal balance. They allow you to do this four times.

So, this is the point you're at with your understanding--you have paid them $90 a month for four months. But if you look at that logically, why would a company allow you to pay less if you take longer to pay? How are they going to make money if you pay only $360 for the service, instead of $390? At this point, you have not paid anything back, you've just been paying their interest fees.

So, they explain that "On the due date resulting from a fourth renewal and every renewal due date thereafter, your loan must be paid down by $50.00." So they're still going to charge you that $90 fee, but you have topay an additional $50 each month, that goes toward the principal balance.

The amounts in your post don't exactly match up with this, so it isn't extremely clear to me. You say they're debiting a total of $145; it should be $140, unless they're charging for the privilege of debiting your account. I'm not sureabout the $125 and the $110, as these should be $140 as well.

But, in reality, based on the terms they put forth in this contract, they are within their rights to do so. So, if you don't opt to pay it off sooner, this is how your payments will look:

Borrow $300

Month 1 - pay $90. No change to principal balance.

Month2 - pay $90. No change to principal balance.

Month 3 - pay $90. No change to principal balance.

Month4 - pay $90. No change to principal balance.

Month 5 - pay $140. Principal balance is now $250.

Month6 - pay $140. Principal balance is now $200.

Month7 - pay $140. Principal balance is now $150.

Month8 - pay $140. Principal balance is now $100.

Month9 - pay $140. Principal balance is now $50.

Month 10 - pay $140. Principal balance is now $0.

So, if you don't pay it off sooner, you will take 10 months topay off this loan, and at the end, you will have paid them $900 in fees and interest for the privilege. That is not worth the return!

I recommend you do whatever you can to pay off this loan asap, and read the contract carefully before entering into financial agreements in the future. This structure is explained in the fine print you posted, so it's there.

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#2 Author of original report

Correct Payments Taken

AUTHOR: Dee - (United States of America)

Payments deducted from bank account was $90.00 on 8/3/2010, $90.00 on 9/3/2010, $90.00 on 10/1/2010, $90.00 on 11/3/2010. Then two payments taken fully amounting to $140.00 December 3/2010. Two more payments were taken fully amounting to $125.00 January 3, 2011. They plan to take two payments February amounting fully to $110.00. March 3, 2011 they plan on taking another two payments amounting to $50.00 and $75.00 or something close to that. The contract soley states either pay in August $390.00 or four payments next four months of $90.00 Contract has me worried because there is no mail received USPS from 500Fastcash like normal companies do. It doesn't show thank you, or end of payments. Altogether so far I have paid $625.00. I am stopping this with my bank. They received more than they deserved. So many companies do not care anything for consumers and take financial needs from them and we cannot pay for other obligations.

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