• Report: #1006217

Complaint Review: Mobiloans.com

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  • Submitted: Wed, January 30, 2013
  • Updated: Wed, January 30, 2013

  • Reported By: Frank — Baltimore Maryland United States of America
Mobiloans.com
151 Melacon Road Marksville, LA Marksville, Louisiana United States of America

Mobiloans.com Mobiloans False Advertisement, Extremely High Fees, Misleading Charges, Money Pit Trap Marksville, Louisiana

*General Comment: You must work for them!!!

*Consumer Comment: How to Deal with Companies that withdaw money from your bank account

*Consumer Comment: I disagree. Mobiloans is definately a rip off.

*Consumer Comment: illegal

*Consumer Suggestion: Not a rip-off

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mobiloans.com is a lending company that offers emergency cash advances for individuals seeking temporary cash relief until actual funds are available (paycheck for example).

I wanted to borrow $500 in advanced until I got my paycheck so I can pay them off immediately.

See, I borrowed $500 in January 2013 and I already paid them $195 in fees thus.  I already paid $180 for the month of January and only $75 went to my principle.

Now I owe more than I borrowed even though I made really good payments.   Having made all these payments, my balance due is now $515.  More than I borrowed.  It's a MONEY PIT!

In order to get out of it, I have to pay it off.

With all the fine print to read before the loan, I did not see that a minimum payment is set automatically without an option to change payment preferences to pay more than the minimum payment.  This is done so they charge me the $65 fee.

Initially in my loan application, it asks how often do I get paid?  I chose biweekly.  Well, that response made my payment due biweekly.  But that doesn't mean I want to pay biweekly!  I wanted to pay monthly!  So they made that decision for me automatically, but if I said I got paid monthly, they would charge me monthly, but then I would be paying $130/month in fees for a $500 loan.

I called them and asked them how to avoid  the high fee and they told me I have to call them 2-3 days before the due date and make a higher payment to get me under the $400 bracket to avoid the full $65 fee.  So out of the $90 minimum payment towards my $500 loan, only $25 goes towards the principle.

This is a MAJOR RIP OFF!

Thinking that my amount due was due monthly, I later find out (in the same month of my initial loan)  that they are charging my debit card automatically every 2 weeks when I get paid, not monthly like all the lenders operate and they are charging me an extremely high flat fee of $65 for having a balance over $400 as a "Favor" to me.

WTF!?

They actually don't tell you the fees until after you call in to complaint about the fees!

I found out that any loan over $400 there is a $65 fee.  Under $400, there is a $45 fee, and if I get it under $300 there is a $30 fee and so on.   

But that is not what the website says.  They pulled a "switch and bait" on me.   The false advertisement on the website says the following:  https://www.mobiloans.com/Home/ConsumerCost

"How much does Mobiloans Cost?

When you get a line of credit, you pay a Cash Advance Fee. For amounts drawn from your Mobiloans Credit that are up to $500, the Cash Advance Fee will be $3 per $20 drawn. For amounts
drawn from your Mobiloans Credit over $500, the Cash Advance Fee will be
$2 per $20 drawn.


If you pay your line of credit back in full on or before your due date, there are no additional fees or charges."

So according to this, I thought my fee would only be $50/month.

Instead, it is $65/biweekly with minimum payment they have set for me and the consumer cannot change it.  I have to call it in.

So far, I have paid them $296 and my balance due is $399.  I should have only been charged $50/month that's $2 for every $20 of the $500 I borrowed.

Realistically, my balance should be $254, not $399.

I asked them since I have been making good payments on time if they could wave one of the fees since I made 2 back to back payments, they said no.

Even though I was told on the phone the 2nd time that if I made a $116 payment, that they will only charge me $45 fee.  LIARS!  They are still charging me the $65 fee biweekly and they charge me when the want to, not when I can.

Because I made good payments with them, I was approved for a new line of credit for a credit card, so now I just opened another credit card with a $500 credit limit with 0% Intro APR, I am now just going to have to transfer my mobiloan balance over to that because Mobiloans is outrageously expensive.

Another last pointer is, they claim to be stationed in Louisiana, but their bank is outside of the United States.  So be prepared to be charged an International Currency exchange fee of $10 to your Credit card or Checking Card with every payment you make to them!

BORROWER BEWARE!

DON'T DEAL WITH THEM!  THEY HAVE NO MERCY FOR THE BORROWER AND THEY WILL RUIN YOUR CREDIT IF YOUR ARE NOT CAREFUL AND YOU WILL END UP OWING MORE THAN YOU HAVE BORROWED!






This report was posted on Ripoff Report on 01/30/2013 02:08 PM and is a permanent record located here: http://www.ripoffreport.com/r/Mobiloanscom/Marksville-Louisiana-71351/Mobiloanscom-Mobiloans-False-Advertisement-Extremely-High-Fees-Misleading-Charges-Mone-1006217. 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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#1 General Comment

You must work for them!!!

AUTHOR: Bob Navarro - ()

Mobiloans is a ripoff--that is a fact. Just look at all the complaints against this outfit.

 

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#2 Consumer Comment

How to Deal with Companies that withdaw money from your bank account

AUTHOR: Ogden - ()

 If this company continues to withdraw money from your bank account, notify your bank that you are concelling your debit card and closing your checking/savings account. The bank should be symapthetic to your situation.

More than likely they will sell your debt to a debt collection company who will hound you day and night.

In your response to their demands, demand all documents, statements and representations that they have made to you and on their website as well as their compliance with the Fair Debt Collection Practises Act.

This procedure will incur several hours of expensive legal bills on their part (none on your yours, only your time and postage).

If this should end up in court, they will try to make a deal before it actually gets heard in court.

Chances are better than good that they will back down.

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#3 Consumer Comment

I disagree. Mobiloans is definately a rip off.

AUTHOR: deela261 - ()

I too made the mistake of borrowing from Mobiloans. I did notice the insane fees/interest they charge however, I too wrongly thought that I would be making once a month payments. After making my first payment, one week later I get an email from them saying I have another payment due.

Not only that, it's nothing like the "example" on the chart they have to go by according to how much you borrow from them.

I wasn't particularly worried about it because I am paying down another loan but unable to refinance it yet. I decided in a couple of months I would be able to get the Mobiloan payed way down or payed off. No problem, right?

Unfortunatley they are taking two and a half times more than I was counting on according to their "example" chart and taking it twice monthy. Not once monthly. You see, on the chart it just says payment 1, payment 2, payment 3 and so forth.

Thanks to the insane, unreasonable and unfair (and I'm thinking maybe illegal) I would be paying them well over twice what I borrowed. It's set up so people who get once a month income have no wiggle room to pay over and above the set payment to pay it off quicker.

I've worked with several other higher interest loan institutions for people who are trying to rebuilt their credit and though it's rather expesive it is completely reasonable because it's pretty easy to get it payed down quickly and they are reasonable folks that will work with you if you need to be a few days late on an infrequent basis.

I have been working very hard to pay my bills and loan payments on time to rebuilt my credit after bankruptcy a few yrs. ago and interestly enough, after each loan my credit was slowly going up. It's gone up 130 points in the last year dealing with lenders who are fair, though somewhat expesive.

So that's another thing I'm left with. The fact that for some reason after taking out this Mobiloan my credit went down a few points. They are a rip off. A predatory lender. Very deceptive and as I say possibly illegal. It's something I am checking into.

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#4 Consumer Comment

illegal

AUTHOR: matt - ()

actually mobiloans is an illegal loan company and all you owe them is principal and i mean over the entire length of time you jave borrowed and including multiple loans i have all the information to stop them along with companies they are affiliated with. call your states ag and ftc. i also recommend contacting your elected officials. i told them i would post and blog info everywhere until they repay the money they have stolen from me. btw ftc ruled tribal law doesnt apply.

matt

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#5 Consumer Suggestion

Not a rip-off

AUTHOR: Highspeed7 - ()

Mobile loans is not a rip-off. I have personally used their services roughly five or six times when my wife and I were in a financial bind. The problem is that most people think of it as free money, when actually it is like any other loan. Yes they charge you a good amount of money, but it is a small price to pay in most cases. My suggestion to whoever uses this service. Borrow the money and pay it back in full on your next paycheck.

This report is simply not true. You can pay your balance off at any time, no questions asked.

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