The Story of George Smith
Virginian, George Smith, recently relayed this story to VaPERL:
"I am disabled and living month to month on a limited income. I realized after a year or two that I was in trouble with creditors so I quit causing my already bad credit rating to slump even lower.
"Eventually, I was so desperate for money that I let my sister talk me into taking out a loan with this company call 'Fast Auto Loans.' After all, I did own a car.
"When applying for this particular loan, the representative told me that on a $500.00 loan my first initial payment woud be only $150. He also said that the pay back scale would be lowered each month. Because I was desperate, I was hooked!
"So I recieved the loan in exchange for the title of my car. I paid on this loan for a FULL YEAR and never missed a payment. At the end of that year, I recieved a statement from 'Fast Auto Loans' charging me a renewal fee including interest which balooned the loan back up the old balance of $500 plus.
"I think I paid them close to $1000 total trying to get rid of this loan. At one point when I told this company that I could not meet my obligation for that month, they said "come on in Mr. Smith we will work with you." However, all they did was renew my loan and give me a credit increase of a $100 - putting me further in debt with them.
"I realize after that I had only added to my original mistake. Since I was still without the money I needed to live, I often thought "was it worth the risk?" I was worse off after the loan than before it.
"Fortunately, I was able to buy a few things for myself that I needed. Some of the law makers are saying no one twisted any arms to make individuals such as myself take out these loans. Although, that might have a ring of truth, I look at it as my honest attempt to meet an obligation with this company with no end in sight because I could not pay them back $500 in one lump sum. I did my best and my best wasn't enough. I don't understand why our leaders who we elected to protect us allow this type of lender to even exist knowing what their intended purpose is!
"In the end, I lost my car even though I paid back more than $1000 towards this loan of $500. They sneaked up and took it while I slept with the full backing of the laws of this state. I could not afford an attorney, so I have no car and have to depend on others to get around or the poor public transportation. Either of these situations are difficult at times.
"Again, maybe I should have thought it out more careful walked away or I should never have gotten these loans but if any one can walk a mile in my shoes and under similar circumstances not do the same, I applaud them."
George Smith