Complaint Review: LoanMart - Van Nuys California

The Supreme Court of the United States eliminated all usury laws in the United States in 1978 meaning that anyone could charge exhorbitant fees for any type of loan - both secured and unsecured.  Even though technically an auto title loan is secured, the value of the collateral is iffy at best and decreases over time.  They have to rely on the borrower to make the payments and generally - like you're trying to do here - they try to weasel out of the loan.  Even a state like California recognizes the fact that there are people like you with no ability to access traditional institutions for a loan, so the state allows companies like to exist.  They won't be banned and no petition will change that.  

Let's face some uncomfortable facts for you: 

1.  You're complaining about an institution with its outrageous interest rates.  So who is the arbiter to what exactly is an outrageous interest rate?  You??  Me?? Actually, the marketplace does.  If no one goes to Loanmart to obtain a title loan, then they're forced to either go out of business, or lower their rates.  Either way, rates are governed by demand for such loans, and the ability of borrowers to repay the debt.  You contributed to this situation.

2.  If a petition to eventually lower rates would have happened, the likelihood is that you would never get the loan in the first place because a business like this would not to do business in California.  The number of deadbeats in California is staggering, along with the number of homeless.  You'd likely be in a worse spot than you are this very minute.  Remember that emergency payment you had to make?  Doesn't happen because the loan doesn't happen.  How about rent today?  Doesn't happen either for the same reson.  You would likely be facing homelessness right now, if you weren't by this point anyway.

Perhaps it's time for another job?  Getting hours cut when there are plentiful jobs available and rising wages, seems like it's a good time for a change.  You may also have to consider moving out of California to a state that's more affordable?  As others have suggested, your current lifestyle habits and situation are part of the problem here; yes you exascerbated the problem by opting to get an auto title loan.  But once you obtained that loan, you have to comply with the terms, no matter what.  Complaining 5 months after you received the loan...is not the time to complain.

If you want to shut companies like this down, you don't need a petition.  You just need to NOT borrow the money.

You aren't an innocent borrower.  You knew EXACTLY what you were doing. You put up your friends car to get a Title loan because you could not get a loan through more regular means.  The interest rates were disclosed to you as that is a FEDERAL requirement, but like many  you chose to ignore them because you felt you needed the money.  It was only after a while when your "sub prime" ways appear and you feel you have paid enough so you don't "think" you should have to pay any more or think the company should just allow you change the contract and pay what ever you want.  In the "real" world it doesn't work that way. You signed a legal agreement that said you would make a certain payment for a certain time. There was nothing in that agreement that said you only had to pay when you could, or for only as long as you felt you needed to.

The person I feel really sorry for in this situation is your friend, as if you fail to make the payments as YOU agreed to, your friend is going to be the one who suffers when they reposess their car.

 Nobody forced you to take this loan. To consummate this loan, you had to sign a contract which detailed the terms. Did you even read it? You agreed to the terms of this loan. The fact you cannot pay it back is not their fault. It is yours and represents financial illiteracy. You cannot borrow your way to prosperity!