- Report: #495637
Complaint Review: AMERILOAN - Internet
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AMERILOAN
www.ameriloan.com Internet, United States of America
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AMERILOAN is Ripping me off, barrowed 400.00 the end of June 08 and as of the 18th they have taken out 700.00 Internet
I barrowed 400.00 on 06/26/09 it was deposited into my account on 06/29/09. Well they have been taken out 120.00 every 2 weeks since 07/04/09 until 09/04/09 then they withdrew 170.00, which was the usual 120.00 plus 50.00. I looked at my account balance this am with them and they say I still owe them 455.00. Well my next payment is suppose to come out on the 18th of this month and it is 105.00 plus 55.00, so basically since I started this nightmare they have taken almost 700.00 on a 400.00 loan. I mean really are they serious. Then on top of that the pay that they have me listed isnt correct. They changed it on thier own. I have since changed my account number because I was reading that they will submit some type of check. I feel they have taken more than enough money out of my account and I 'm done.
1 Updates & Rebuttals
Robert
Wallingford,Connecticut,
U.S.A.
Your Loan is auto-renewing.
#2
Wed, September 16, 2009
What is happenening is that your loan is auto-renewing every two weeks.
The debits that were taken out of your account were for finance charges only. None of the funds were applied to your original loan amount. After a certain number of weeks they will start debiting the finance charge plus 50 to apply towards the loan amount.
So this is a breakdown of how it works:
$400 borrowed - Finance charge $30/$100 borrowed.
Week 2: $120 (Finance charge only) - $400 Loan owed.
Week 4: $120 (Finance charge only) - $400 Loan owed.
Week 6: $120 (Finance charge only) - $400 Loan owed.
Week 8: $170 ($120 Finance charge) - $50 towards loan - $355 owed.
Week 10: $160 ($105 Finance charge) - $50 towards loan - $300 owed.
Week 12: $145 ($90 Finance charge) - $50 towards loan - $250 owed.
etc., etc., etc.
These type of loans need to be paid off as quickly as possible. You usually have to contact them prior to the debit scheduled date to instruct them to take the loan amount plus finance charge otherwise it continues to auto-renew.
This should have been explained in your truth in lending paperwork you received when you applied for the loan. Or any of the other loan paperwork for that matter.
Now that you have changed your account you should prepare yourself for numerous nasty calls and possibly an attempt to garnish your wages.
Good luck.
