My Daughter's Car Title Loan
This story was received by VaPERL from a concerned father. The names have been redacted for privacy's sake.
I looked at your website and [my daughter]'s story is basically the same as Ms. Opie's. [My daughter] borrowed $2200 and ended up paying the company almost $11,000 when she paid off the loan in about 10 months. Here are the basic particulars of the loan.
[My daughter] moved from my house to a townhouse with a roommate in August of 2005. As her credit rating would not allow her to borrow money elsewhere, she visited Loan Max in September and borrowed $2200 to assist in setting up her new residence. She received a statement from the company in October and paid her first monthly payment of $670. It is noted that she was paying $650 a month in interest and $670 as a payment, which in the best scenario, allowed her to decrease the principle by only $20 per month.
The following month she moved back to our house. It is noted that she did not inform the company of her change of address and did not receive another statement from them. It is also noted that the address listed on the monthly statements we received when the account was closed, listed an incorrect house number. Loan Max claims that the statements were not returned as undeliverable. Her roommate claims statements were not received at the old address either. Last month, she contacted the company to check on the outstanding balance of the loan and was told it was $3500, after paying payments of $670 per month. She then told me about the loan and her and I went to Alexandria and paid the loan off.
When I came home, I was so upset, I immediately began helping her prepare formal complaints against the company (Loan Max) which were submitted to Maryland and Virginia Government offices, that supposedly are in business to protect the consumer. Each office responded with "sorry, there is nothing we can do about this." I had pretty much given up my quest to expose these business practices, and chalked this experience up as a very expensive lesson learned by my daughter.
While surfing the net on Friday, I came across the organization Ms. Fox works with. Needless to say the fire under me was relit. I doubt very much if my daughter will get any of her money returned, but at least between your and Ms. Fox's organizations, the public will be better educated and these types of businesses will become regulated, so the "loan sharks" will eventually fade into the woodwork.