- Report: #1006217
Report - Rebuttal - Arbitrate
Complaint Review: Mobiloans.com
Mobiloans.com151 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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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.
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!
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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