• Report: #1036763

Complaint Review: mobiloans.com

  • Submitted: Thu, March 21, 2013
  • Updated: Thu, March 21, 2013

  • Reported By: Victimized in — Turnersville New Jersey
mobiloans.com
MobiLoans, LLC 151 Melacon Road Marksville, LA 713 Internet United States of America

mobiloans.com Mobil Loans Misleading repayment plans. They charge flat fees instead of interest. Why? because $1000.00 will cost you the equivalent of 125% if calculated as simple interest over a 10 month repayment window. The Internet

*Author of original report: How much did you get paid to write this rebuttle for them?

*Consumer Comment: Read Before Agreeing

*General Comment: Read the fine print before you click

*Author of original report: Mobiloans Not Licensed in State of New Jersey

What's this?
What's this?
What's this?
Is this
Ripoff Report
About you?
Ripoff Report
A business' first
line of defense
on the Internet.
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Does your business have a bad reputation?
Fix it the right way.
Corporate Advocacy Program™

SEO Reputation Management at its best!

I opened a line of credit with mobiloans end of last year. I borrowed roughy 1000.00 before the end of last year. I've been making payments on the account bi monthly as agreed in the amounts that they were charging. 

I recently logged into my account only to find that my available credit was less than 100.00 dollars. Perplexed at this, I checked my payment history and was shocked that roughly 50.00 was being applied to my principal and the rest was going toward "Fees" 

Mobiloans "new twist on cash" is Frankly... Evil. They have devised a well thought out scheme that maximizes a persons need to depend on them and a false sense of security. We assume as consumers in this country that the government is watching and regulating things to make sure we are not being blatantly set up by a business entity to be exploited financially. 

They use a "hook" on their website that tells you you only pay $3.00 for every twenty dollars you borrow up to $500.00 and $2.00 for every twenty dollars you borrow over that. (something to that effect)

The repayment plans are all 20 payments consisting of a Fixed fee portion and variable fixed fee. Yes, I said that right. They have a fee that is "fixed" to the individual payment tier. That Fee starts out very high in the beginning and goes down slowly as you get the end of the repayment term. Basically, it is structured like a mortgage. Interest up front or in this case higher fees and slowly it reduces except The odd thing about this is the principal stays the same the entire time. Over time with your mortgage, the amount paid towards your principal loan balance increases as the amount of interest decreases.

When I recently calculated the repayment of the $1000.00 I borrowed over 20 payments (Ten months in my case) I will have repaid $2265.00 (initial 1000.00 borrowed + 1265.00) in fees. As a simple interest calculation Mobiloans "fees" equate to 126.5% interest. 

For a comparative perspective, I did the same calculations for the $500.00 loan amount. If I did it right it comes out to an equivalent of 146% interest. 

Conclusion : The more you borrow with Mobiloans the lower interest or in this case "Fees" you pay.

Doesn't that contradict common sense?

I don't have the statistics available on what the majority of Mobiloans customers are borrowing but based on what I discovered I am willing to bet most of their clients probably borrow 500.00 or less and are subject to pay the higher amount. After all, The more money you borrow - the higher the risk to the lender right? Therefore the higher the interest rate Right? Not with Mobiloans, borrow more and pay less fees. 

The point I am making is this system is completely set up to maximize unfair, unreasonable, and unethical profits from those that don't have anywhere else to turn to.  Additionally, Financial services in this country use something called an interest rate. Even though mobil loans uses the word fee, I made the assumption that there was an interest rate calculation behind the fee. NO Normal Person of Normal intelligence is going to think that the fee on 500.00 will equate to 146% interest over 10 months. 

When I realized I was being for lack of better term cash raped, I emailed Mobiloans. I was told to call them and I did. The Customer Service Rep. was difficult to speak with and I asked her to have her supervisor call me. He did and he was the same way. I asked for a resolution to be worked out with regard to this. His Resolution to me was to read things. Which I did at the time and came away from it with a different understanding than what I am experiencing. The other part of his resolution was for me to pay more a month on the principal. The issue I called him about was the unfair lending practices and charges. I asked for something to be done about that. To which he said no. I asked for his supervisor to call me. It's been two days and nothing.  I will be filing a report with the better business bureau and division of consumer fraud. If anyone else has has similar problems please post your situation here as well. The word needs to get out, These types of predatory lending practices will STOP!




This report was posted on Ripoff Report on 03/21/2013 01:36 PM and is a permanent record located here: http://www.ripoffreport.com/r/mobiloanscom/internet/mobiloanscom-Mobil-Loans-Misleading-repayment-plans-They-charge-flat-fees-instead-of-int-1036763. 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.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on mobiloans.com

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Search Tips
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
REBUTTALS & REPLIES:
2Author 2Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

How much did you get paid to write this rebuttle for them?

AUTHOR: - ()

Allow me to be clear and set the record straight... 

I did borrow money from mobile loans.

I did borrow it with the intention to pay it back.

I did pay it back plus a substantial amount of interest.

Mobile loans at the time this occurred was NOT licensed to do business in the State of NJ. They weren't licensed to do business in many states for that matter at the time of this occurring.

This wasn't an oversight on mobiloans part they were made aware by the State of NJ many times before per the State who took this file and handled it for me.

I can not speak as to the  laws in other states but in NJ if you are driving your car without car insurance as it is state law you must have it to operate a vehicle on the roads, and you are in a car accident. Regardless of how the accident occurred or who was the negligable driver, the driver without the car insurance is automatically at fault.

The reason: You weren't supposed to be on the road to begin with without the legal requirement of maintaining car insurance being met.  THIS IS THE SAME THING! 

MY thought is why wouldn't mobile loans get the licensure needed so they could operate in NJ... I don't have this answer but my guess is they couldn't. I can't speak to that fact or as to if they have obtained it since my incident but my guess is the State of NJ probably knew the type of enterprise operating mobile loans. 

To those that feel I can't read the fine print keep you comments to yourself - it was a few years ago  so frankly I flushed most of the experience once the state of nj resolved it for me, but the long and short of it is what I read on the website did not equate to what I ended up paying. There was a disconnect deliberately created to keep people from realizing what the cost of the loan actually was. 

In this county and probably most of the world there was a standard created. It is called an interest rate - it was created for a reason. They teach us in school how to calculate interest on loans etc. We as a society are conditioned to interest rates, how to calculate them, and have a sense of how much borrowed money will cost us. 

Mobiloans took that from us with their implementation of the "service fee" the use.

If the interest rates were appropriate they would have called it an interest rate since everyone knows what that is. They instead covered up essentially illegal interest charges buy calling is a service fee. How convenient... 

Since you like to pay high interest on your loans go for it. Since you and the others that basically call me a liar and feel mobileloans is a stand up enterprise do business with them. I'd have to think you'd be stupid to do that since obviuously if you are taking out a small loan like that you probably have some cash flow problems to begin with.

Afterall, Wealthy people borrow from themselves first unless it is cheaper to borrow someone elses money and pay it on time. They typicallay have assets, savings, investments, etc. 

So Give Mobiloans your hard earned money... Or did Mobiloans hire you to file this rebuttle with my money they should have returned to me? 

Yes Mobile loans was sent a letter from the State of NJ to Refund me everything over the principal balance borrowed that I paid them as they were conducting business in a state they were not legally allowed to be conducting business in at the time. WHERE IS MY MONEY MOBILELOANS?

Technically - mobile loans owes me back all the interest I paid on it. Of course, They have yet to refund me anything. I don't expect them to... What they owe me is too little for me to have an attorney get it back for me. Unless of course there is a bigger problem than I realize here and a class action lawsuit is in order but who knows since they operate on indian grounds, they are essentially their own country sitting on US soil conducting business and making money by pillaging the American people who don't realize they don't operate by our laws. Maybe another reason why they didn't have licenses to operate in so many states at the time.

 

Respond to this report!
What's this?

#2 Consumer Comment

Read Before Agreeing

AUTHOR: TheRemixOnline - (USA)

While I must say, everyone is entitled to their opinion I must defend Mobiloans not because of their practices but because they go above and beyond to clear up all the issues you've stated on their website alone. Yes, it's a very shady practice BUT in the institutions defense, they've even stated that this is not a long term loan solution, it's recommended as a payday loan and could even be stretched as a short term loan (a few months). This is to deter customers from using this service as a long term loan. Mobiloans charges a fee for withdrawals (based on the dollar amount withdrawn) and if a fixed finance charge if customers opt not to repay in full. Mobiloans is a pay day loan service who makes their money solely on collecting fees. Without this structure, there would be no loan. Don't confuse this service with a traditional bank or credit union that offers many other profitable services and solutions which allow savings and lower rates to be passed along to customers. If you've noticed, all financial institutions that offer one service rip off customers - not because they are evil but because they need to stay in business. These types of institutions need your business as much as you need their money Requesting a supervisor and filing a complaint on something you signed up for, agreeded to and withdrew money from isn't going to erase the balance. I became unemployed and knowingly got myself into this situation and it is a tough one to get out of, I completely understand your frustrations but I don't think Mobiloans deserved this one.

Respond to this report!
What's this?

#3 General Comment

Read the fine print before you click

AUTHOR: 25 smith drive - ()

I took a loan mobiloan and had no problem at all with them. I took 1000.00 dollars and paid back 1100.00 to weeks later. They tell you what your fee is and you pay it back in full. Don'T TAKE A LOAN IF YOU CAN'T PAY IT BACK IN FULL. 

Respond to this report!
What's this?

#4 Author of original report

Mobiloans Not Licensed in State of New Jersey

AUTHOR: Victimized - ()

FYI, Anyone doing business with Mobiloans in the state of NJ Please call 609.292.3420 it is the State of NJ Division of Banking and Insurance. Please speak with someone in the department of consumer finance.

Mobiloans was issued a directive from the State of NJ on 04/11/13 to CEASE and DESIST from providing loans to residents in NJ. As of 5/22/13 Mobiloans had not responded to the State's request. They had 30 days to do so and did not.

Since Mobiloans is not licensed in the State of NJ to do business. Anyone having paid back their principal balance borrowed has in effect satisfied their loan. MOBILOANS is not entitled to a PENNY MORE than what you borrowed since they ARE NOT LICENSED IN THE STATE OF NJ.

To date they have not refunded my overage and are continuing to try and collect despite receiving the cease and desist order. It is my firm belief that this company just does what they want because simply noone has stopped them YET.

MY advice to anyone out there having problems with Mobiloans is to contact your state department of banking and and file a complaint with them. If that gets you nowhere you can also file at a federal level at www.consumerfinance.gov. or call 855-411-2372. This is my next step since mobiloans won't close my account and refund to me the fees that I paid and I would welcome others to do the same so we can get this problem stopped.

Respond to this report!
What's this?
Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?
X