I made an quick loan with a company called Ameriloan for $800.00 dollars, and agreed to spread my payments out to twelve months at $240.00 per month. Now I received a letter from them saying that I have to pay off my loan in full $1040.00 ASAP or ? Is this legal? as I read the above this is not legal.
Keep in mind that I have already made four payments of $240.00 that equal $960..
The original amount was $800.00
Is this legal? what can I do? I'm 79, retired and living on pension and social security. Theres no way that I can come up with that amount of money.
I've enclosed the letter from ameriloan.
Hope I can get some help, I don't want them taking any money out of my account without me having a say so.
Lillian C Young
Every payday loan lender in South Carolina must obtain a license from the State Board of Financial Institutions. To apply, a payday loan business must have at least $25,000 in assets and provide the following information: legal name and residence of the business, location, financial responsibility, background experience, any partnerships, associations, and corporations adjacent to the licensed location. Under South Carolina law, a payday loan lender cannot lend cash advances unless the customer?s bank account has been verified. Cash advance loan lenders must post a notice that has the fees listed.
The most amount of time a payday loan lender can defer a check is 31 days. In addition, payday loan lenders in South Carolina can only lend payday loans up to $300. This amount is one of the lowest compared to other states that offer up to $500.
As with other states, the loan agreement must be signed by the customer and the lender. It should contain the name of the lender, the transaction date, the amount of the check, a statement of total fees (expressed in dollars and annual percentage rate). The agreement should give the lender authorization to defer a payday loan for up to 31 days as stated above.
The maximum amount of fees any payday lender can charge in South Carolina is 15 percent of the face amount of the check. This fee can only be imposed one time to the borrower. In South Carolina if the check is returned to the payday loan lender due to insufficient funds, closed account, or stop payment, the payday loan lender may pursue all available legal action. Under those circumstances, an additional fee up to $10 can be charged.
Hello Lillian Young
Due to payment processing issues we are no longer able to debit your account on your due date. For this reason we ask that you please set up alternative payment arrangements to repay your loan.
To settle your account in full or to set up payment arrangements on your outstanding balance of $1,040.00, please contact a customer service representative now at 1-800-362-9090. A representative may also contact you to assist in setting up an alternative payment arrangement for settling your loan balance.
We will be accepting the following payment options:
• Debit Card
• Pre-paid Card
• Money Order
• Cashier’s Check
• Personal Check
We apologize for any inconvenience this might cause, and appreciate your assistance in setting up an alternative payment arrangement.
3531 P Street NW
PO BOX 111
Miami, OK, 74355.
Monetary Loss: $1200.