Best Choice 123 for a 675 dollar loan i have so far paid 3426.00 and still have an outstanding balance of 846 dollars Internet
I needed some cash for a bill and went to the Montel Williams site where I was matched with Bestchoice123. I was approved for 675 dollars. this was on August 5 2013. Every two weeks they get money directly out of my account. The first payment was 222 dollars and 16 payments later they are getting 132.50. So far the total is 3426.00 that I have paid on this loan. I still have an oustanding balance of 852.00. When I call to ask why I still owe so much they say I have to pay the principle first. I know i am being ripped off but what can I do?
2 Updates & Rebuttals
Juan Pablo
atlanta,Georgia,
Please read your Loan Agreement before signing it!
#3Consumer Comment
Mon, July 21, 2014
Good day to all, I have had a loan from BC123 (& others in the past) & while each companies rules differ slightly, most are pretty much the same format. I have made the same mistake as this user in the past (w/my first loan). If you read the loan agreement within the first 2 pages you will find your payment options/renewals sections that clearly outline how to repay the loan while minimizing what you you pay in fees.
To make these loans work, you have to pay an amount "above" the minimum required payment (just like you would with a credit card). The extra funds go to principal & reduce your next loan/finance fee. Just like with any other contract read it first & understand what you're agreeing to BEFORE you agree to it. Problem is, we get so consumed with procuring the needed funds, that many overlook details and feel cheated in the end.
FloridaNative
Palm Beach Gardens,Florida,
Something doesn't sound right
#3Consumer Comment
Sun, April 20, 2014
First of all, I don't work for a payday loan company at all, but I understand financing. What you have been paying every two weeks is the interest due on the outstanding balance. It appears to be an an extremely high rate which is typical for these subprime predatory lenders.
The person that told you that you have to pay the principal first means that as long as the principal balance is outstanding the lender will keep charging you interest on the outstanding balance. You should have a contract in writing that shows exactly what the payment terms are for this loan. Look at the payoff clause in your contract to find out what you have to do to get an accurate payoff balance. Get the payoff balance and pay it off entirely. That is the only way to stop them for taking money out of your account. Make sure you get a payoff receipt after pay off so they can't continue to come after you for interest.
Then, after you have done that - you might consider changing bank accounts.
Then research your state's statutes to see if there is a limitation on interest that payday lenders can collect from you. Some states have limitations, most don't.
Only if they are violating interest rates for your area or other state statute requirements, report them to the FTC and the attorney general and sue them in small claims court.