How can the fees charged by this company be legal?
The lady to whom I was speaking with while applying for a loan simply hung up on me while I was talking in a very nice, respectful, and cordial way to her, I think ,because she was embarrassed she was having to say the things to me she was saying just to keep her job. I was trying to get a $1,600 loan for 10 months and she was telling me the first month I would have to pay $300 and some change before I could even pay on the principal! For example she said if I paid $310 the first month $300 would be going to her company and $10 would be going to my principal . Then she told me the second month I would automatically be required to pay $700 my second month and if I paid $10 extra too ONLY $10 would go to the principal! How can that be legal? When she told me my second month I would have to pay $700 towards a 1,600 loan FOR 10 MONTHS and NONE of that would be toward principal I KINDLY asked her to repeat that because I was not understanding how a 10-month-loan of $1,600 which would be approximately $160 per month plus the interest fee would cause me $700 my second month with nothing going to the principal whatsoever. !!!!!! I asked her was it not illegal to charge more than 35 or 36% on a loan and she told me Credit Fresh charges $49 for every $100 you owe per month!! Maybe I'm wrong but I did not know that a loan company in the United States of America could charge someone $700 per month and NONE absolutely NONE of it goes toward the principal on a simple $1,600 loan for 10 months?? Also ,for the young ladie to just hang up on me made. me wonder if I was even talking to a legitimate company at all or like I said earlier perhaps she was just embarrassed that she had to say all that stuff to keep her job! I do not know for sure, but maybe the girl did not understand what she was to even trying to explain. Maybe she was a new employee telling me incorrect information but for a loan company to charge somebody $700 per month and none of it goes to the principal on a $1,600 loan for 10 months tells me immediately that there is something wrong there for sure. I don't know if you call it price gouging or just plain and simple sickening greed but something is just NOT right about that situation at all.