• Report: #1036763

Complaint Review: mobiloans.com

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

  • Reported By: Victimized in — Turnersville New Jersey
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

*General Comment: Read the fine print before you click

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

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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.

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#1 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. 

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#2 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.

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