• Report: #294020

Complaint Review: North American Title Loans

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  • Submitted: Sun, December 23, 2007
  • Updated: Sat, October 11, 2008

  • Reported By:sylva North Carolina
North American Title Loans
2300 Cherry Rd Rock Hill, South Carolina U.S.A.

North American Title Loans I got a 600 dollar loan, missed a paymen told to come in and refinance, got 187 dollars and now they say I owe them 6100 for 887 dollars Rock Hill South Carolina

*Consumer Comment: Not a ripoff

*Consumer Comment: rere

*Consumer Comment: rere

*Consumer Comment: rere

*Consumer Comment: rere

*Consumer Comment: You aren't doing very good, Mary.........

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I got a loan from north american title loans they have my title to my car. I got 600 dollars the first time, missed a payment and they told me to come in and refinance so i did, got 187 dollars at the time, the total money i got was 887 dollars and now they say i owe them 6100 dollars. Don't know what the interest rate is but this is not legal is it? Something needs to be done about these kind of people. They said i borrowed 1200 dollars don't mind paying back a reasonable amount but 6,100 dollars for 1200 is outrageous. Please check into these high interest rates, can't be legal!!

Mary
sylva, North Carolina
U.S.A.

This report was posted on Ripoff Report on 12/23/2007 09:38 AM and is a permanent record located here: http://www.ripoffreport.com/r/North-American-Title-Loans/Rock-Hill-South-Carolina-29732/North-American-Title-Loans-I-got-a-600-dollar-loan-missed-a-paymen-told-to-come-in-and-re-294020. 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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0Author 6Consumer 0Employee/Owner
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#1 Consumer Comment

Not a ripoff

AUTHOR: Mack - (U.S.A.)

If you were to get a loan from them and not pay attention to what you were signing, I could understand thinking that they are ripping you off. But any small loan company is in an essence a ripoff, if you use it too much.

You have to think about the small loan company. How many people actually repay their loan? Not many. What do they require for security of their investment? Not much. Do they do credit checks to make sure that they're taking a minimum risk? No. Due to these few facts is why they have a high interest rate. They are taking a high risk, and you will always see a higher interest rate for the higher risk takers.

For instance, even banks charge amounts as high as $50-$150 for withdrawing from your personal checking account without money. However, a lot of companies that have small/large business accounts with these banks, have to pay nothing for it. That's because the bank believes that they are lesser of a risk than a personal account.

Loans and investments are low/high risk situations. With that comes low/high interest rates.

If you've ever gone to a small loan company and actually calculated the interest rate, you'll notice it's a lot higher than the 304% annual interest rate on your title loan. Some are as high as 1,000% annual interest. This is disclosed to you before you even sign for any loan, due to loan regulations. So to think it's a ripoff going into it and still doing it, is your own fault.

As far as the situation that happened, they charged you a high interest rate and needless to say it was for a good reason. You couldn't pay your payment, which most can't who get small loans and you ended up having to deal with the renewing the account.

You have to think about it like this, you borrowed $600 and with an annual interest rate of 304% that'd mean that by the next month that day you'd owe $752. However your payment was probably around $202. If you can't pay that payment then your loan would now renew for the $752 you already owe plus the $202 additional dollars to make your payment, unless you asked for more.

That additional amount that they gave you is principal plus interest so they'd have to give you the principal part of that which is what you said they did. So now you end up with owing $752 + $202 = $954 x (1 + 3.04) = $321 in additional interest as well as the remaining balance of $954 for a total of $1275.

As you can see it can add up quick. That's in two months. That's why when you get the loan they statement in huge 28-32 bold font on the front page you sign "Annual Percentage Rate (The cost of your credit as a yearly rate) xxx.xx%", "Finance Charge (The dollar amount the credit will cost you) $xxxxx.xx", "Amount Financed (The amount of credit provided to you or on your behalf) $xxxx.xx", and "Total of Payments (The amount you will have paid after you have made all payments as scheduled) $xxxx.xx."

And if you pay attention to what you should be reading, then you'll notice that you can pay of the loan early. What does that mean? That means for every payment that you put towards balance, in addition the regular payment you will be putting towards the principal. And then you will not be paying anywhere near the finance charges stated on the statement.

I am a customer of North American, and not an employee; however, I know the difference between a mortgage and title loan. Borrowing a large amount of cash is rewarded with a lower interest rate, whereas a small amount of cash is penalized with a higher interest rate.

Just so you'll know what I received. Here's what read at the top of my statement: Annual Percentage Rate 304.17%, Finance Charge $3,421.32, Amount Financed $1,515.00, and Total of Payments $4,936.32. And here's what actually happened: Annual Percentage Rate 304.17%, Finance Charge $480.23 , Amount Financed $1,515.00 , and Total of Payments $1,995.23. And why is this? Because I paid against the balance, before my payments were even due. I had my loan paid back within two months.
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#2 Consumer Comment

rere

AUTHOR: Michael - (U.S.A.)

As you are well aware now, title loans and payday loans are legalized loan sharking. I have seen interest rates as high as 1000% (one THOUSAND percent). Since your loan is secured by collateral (your vehicle) I would take the vehicle to a place that rents storage places and get one big enough for a vehicle to fit it. Then start taking the bus. Because this title loan place is going to reposess your vehicle and sell it. And I am willing to bet it is going to be for more than $887.00.
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#3 Consumer Comment

rere

AUTHOR: Michael - (U.S.A.)

As you are well aware now, title loans and payday loans are legalized loan sharking. I have seen interest rates as high as 1000% (one THOUSAND percent). Since your loan is secured by collateral (your vehicle) I would take the vehicle to a place that rents storage places and get one big enough for a vehicle to fit it. Then start taking the bus. Because this title loan place is going to reposess your vehicle and sell it. And I am willing to bet it is going to be for more than $887.00.
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#4 Consumer Comment

rere

AUTHOR: Michael - (U.S.A.)

As you are well aware now, title loans and payday loans are legalized loan sharking. I have seen interest rates as high as 1000% (one THOUSAND percent). Since your loan is secured by collateral (your vehicle) I would take the vehicle to a place that rents storage places and get one big enough for a vehicle to fit it. Then start taking the bus. Because this title loan place is going to reposess your vehicle and sell it. And I am willing to bet it is going to be for more than $887.00.
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#5 Consumer Comment

rere

AUTHOR: Michael - (U.S.A.)

As you are well aware now, title loans and payday loans are legalized loan sharking. I have seen interest rates as high as 1000% (one THOUSAND percent). Since your loan is secured by collateral (your vehicle) I would take the vehicle to a place that rents storage places and get one big enough for a vehicle to fit it. Then start taking the bus. Because this title loan place is going to reposess your vehicle and sell it. And I am willing to bet it is going to be for more than $887.00.
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#6 Consumer Comment

You aren't doing very good, Mary.........

AUTHOR: Thomas - (U.S.A.)

I have read MANY articles over the last two years about the ripoff deals that title loan and payday loan companies provide to unsuspecting people. I guess you were too busy to read any of the articles that I have read.

Apparently you also did not read what you were signing. And as far as I know these ripoff deals are legal where they are actively peddled. There are a TON of title loan and payday loan shops here. They are like flys around carron.

My guess is that you are toast. Is bankruptcy an option? I am thinking that if you were so desperate that you got a $600 loan from one of these bloodsuckers, and you then MISSED a payment, you will never be able to pay back that $6100.
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