They should be ashamed of themselves.
I saw an advertisement on TV the other day, while getting my car repaired. It was an advertisement by Cashcall.com; which offers signature loans to people with poor credit. For credibility, Gary Coleman was the spokesman, claiming that he got $5,000 wired to his checking account within days of filling out the application.
At the end of the commercial; I noticed the small print on the advertisement saying that the interest rate was 99.25%. I dropped by jaw; that had to be a typo, but it is not. Curious, I check out their website and go to the interest rates page. I certainly hope people realize what they are getting themselves into when they sign this thing.
Let’s do some of the math: a $5,075 loan (at about 60% interest). 84 payments of $254.03 each. Total repayment is over $21,000. In 7 years, you have to come up with over 4 times the original loan amount.
For a $2,600 loan the payments are a little better, because of a shorter payoff term. You only payback $9,100 on your loan. 3 1/2 year payoff. For a $1,075 loan, the repayment is about $3,500.
Amazingly, the site even says that the rates can change “without notice” - so are you basking in a 99.25% interest rate. Well, I guess they can up it to 199.25% tomorrow and double your payments on you. Cool deal!
The repayment on these loans are just shocking. I’m wondering the what default rate is; given that these are loans for people with bad credit. I guess Gary Coleman’s penalty for not repaying his debt was being the spokesman for this commercial, because who would willingly apply their name to a company like this?
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Melissa on June 21st, 2007
Ya, do not take a loan with Cashcall. I took the $5075.00 for 59% interest. I just paid mine off, but I had to take a loan from my credit union to do it. I was an idiot to take this loan. It was the most stressful thing. I had the loan for 2 months and paid $1000.00 in interest plus the actuall loan amount. If I would have kept going with it, I would have never paid it.
lorien1973 on June 21st, 2007
Absolutely brutal. Did you realize the interest rate before you took the loan or was that minimized? I’ve never been through the process, but it seems like, with a rate that high, they’d try to hide it as much as possible.
Reinhart on July 31st, 2007
This is why it is ALWAYS important to understand EVERYTHING about what you are getting yourself into.
Otherwise, you could get f***ed by these loan sharks!
The 99.25% interest means that you are going to be paying back twice as much as you borrowed: the principal plus 99.25% of the loan amount in interest. And, that’s an oversimplified estimate: you will likely pay back even more than that.
Roy on July 31st, 2007
These people need to at least use someone like cashloancity.com that doesn’t have joining or up front fees.
CORY on August 2nd, 2007
CashCall offers unsecured simple interest loans WITHOUT PREPAYMENT PENALTIES meaning you can pay the loan off at any time without being penalized. So if you can only afford the minimum payment on the loan YES you will pay back an arm and a leg for the loan. Thats why you must pay the loan off early to avoid paying back so much interest.
P.S - Reinhart you really need to learn how an Annual Percentage Rate works. Your probably a CashCall borrower who is still making the minimum monthly payment on the loan. F***IN RETARD
FYI - lorien1973
Once you are approved for the loan you have to sign for the loan online where you are presented with a Legal Binding Loan Document that clearly shows you the worst case scenario on the loan.
neeny on August 5th, 2007
Whatever happened to usary laws? This is legal loan sharking. Sure, you pay it off quickly and you don’t pay as much, but if you are in a financial bind in the first place, then you probably can’t afford to pay it off quickly.
lorien1973 on August 5th, 2007
Usury laws only apply if the person defaults. Let’s say cashcall.com’s rates are above the “legal” limit, then they could only sue for the interest up until the legal limit, not all of it. So they can charge whatever interest they want; but if the person defaults, they can only collect that maximum rate.
To a commenter above - clearly paying off the loan as quickly as possible is the best case scenario for any money you borrow.
But, let’s be honest here. Cash Call promises money in hours or days, no credit check. If people had money to pay off their loan quickly, surely they wouldn’t go to Cash Call and a 99% interest rate. They’d go to a real bank. This company is clearly preying on desperate people.
Aaron on August 9th, 2007
Everyone Reading this That needs a Loan there Hit me up at alstotter@aol.com , I work there and Can get you the Payday advance you need
Roy on August 9th, 2007
I would much rather see someone get a lower interest short term loan from cashloancity.com I did and it wasn’t too bad at all.
kathy on August 10th, 2007
Its too bad that many have fallen into the slump of borrowing money without knowing the consequences. Do your research, check your bank or credit union for possible options for your financial distress. A better option is to secure a loan with collateral such as your vehicle once its clean of all liens. A co-signer on the loan will strenghen it and possibly get you a better rate. You don’t lose anything by doing your research!
P.S. Beware of those offering you fast and easy access money. These offers come with costly strings attached to them.
jenny m on August 10th, 2007
i am having some disturbing problems with cashcall thay call every one at all times of the day and night making threating remarkes. thay get paid by consumer credit and thay still send in to my bank account for money whice i had to stop my direct deposit because of them. and thay still call. my mother is 78 years old thay call her so much she leav her phone off the hook no onr in the familey can reach her to see if she is ok. she is even thinking about getting her number changed and she had that same number as long as i can reamber.i regreat every day that i put in for that loan and the heartach thay are puting my mother threw. she dont understand thay have her thinking thay are some kind of loan sharks or something and thay are going to do something to me or her or her house, i have to heare this every day from her shes not well.
CincyGuy on August 11th, 2007
What kind of a country do we live in that legally allows a company like cashcall.com to help destroy people financially? What does it say about Americans? We are a sick, sick, society. I would like to see cashcall.com and every bank that funds these loans shut down. They should be made examples of - we need laws against this, NOW!
dave on August 15th, 2007
the article is wrong. it says ‘you have to come up with over 4 times the original loan amount’ when referring to one of the loan programs. the truth is that that situation can happen if you only make the minimum payments for the life of the loan. it is a simple interest loan and there is no prepayment penalty. you are an idiot if you take seven years to repay a $5,000 loan. most of the people who loan from cashcall are lucky they get a dime from anyone. they screwed over countless people to put themselves in a position of getting high interest rates such as these. how many people have they ripped off for them to have such a low credit score? i think of it as a form of credit karma. you get what you give (or don’t give). people don’t seem to realize how credit works. in a nutshell: pay back what you borrow and pay it back on time. duh. if the only place for you to get a loan is cashcall it’s your own fault. i don’t want to hear about single mothers or old people. maybe collections departments will find a way to quantify a pity factor so all of the unfortunate people won’t have to pay so much interest? you deserve what you get when it comes to credit, it’s no mystery. at least it shouldn’t be.
Roy on August 15th, 2007
Well put Dave! It’s about time.
cashloancity.com
lorien1973 on August 15th, 2007
the truth is that that situation can happen if you only make the minimum payments for the life of the loan.
The actual truth is (and you stated this yourself) that the people who are getting these loans are people with terrible credit who probably do not have the money to pay back more than the minimum payment, so of course they are going to be paying back the minimums on this. You are fooling yourself if you believe otherwise. A few of the commenters above also noted cashcall’s collection policies, which seem overly harsh (but justifiable I guess, because they attract defaulters) and another girl who got one of these loans not realizing what she was getting into.
I’m not defending the people who have bad credit, they are in the situation they are in and its their fault. But this company (and others, I’m sure) are predating on these people, continuing the cycle downwards by charging unreasonable interest rates to their customers.
Roy; I’m not sure if you are one to be chiming in here. Your site (cashloancity) links to another of these companies through an affiliate arrangement. You are, in essence, getting paid for these same people filling out applications and getting further into their situations as well. The site your affiliated with isn’t even up front about their interest rates; so that’s pretty shady in and of itself, don’t you think?
eleanor on August 17th, 2007
I would call that false advertizement for the simple fact they are suppost to be helping people and how is charging that much interest helping anyone but themselves
dave on August 18th, 2007
everyone that borrows from cashcall i’m sure meets a minimum residual income requirement, as with just about any loan out there. these people ’should’ be able to afford the loan, however, they do not manager their money well and will continue to put themselves in a bad position due to financial mismanagement. not due to an inability to repay the loan.
dave on August 19th, 2007
there is no company that is ‘out to help you’ other than non-profits and government programs. maybe. companies are there to make money, they could care less about you. help yourself because no one else will.
dave on August 19th, 2007
same goes for cashloancity.com they want to make money off of you and as long as they do that they could care less about you.
Gary on August 28th, 2007
Anyone here ever used cashloanbank.com? I think there’s a new wave of cash loan sites online shooting for lower interest and payments just to get more sign ups. I don’t know.
Anonymous on August 30th, 2007
there’s no pre-payment penalty.
BlogReader on September 12th, 2007
Dave get off the soapbox. I get that you have probably never been in such a situation but it does happen to folks for a variety of reasons. Some are chronic defaulters, some are cheated by business partners, etc.. I vouched for a friend in a legal matter and she defaulted. I was sued and my wages garnished. Had I been notified of the suit I could have made arraingments for payment, but I knew nothing of it until 6 months later. Considering I have several automatic monthly payments from my bank account, this has almost cost me my residence and put several of my accounts in default. We aren’t all deadbeats, as you have implied. Sometimes we are honest people who get caught in a bad situation.
dave on September 17th, 2007
blogreader - your situation sounds unfortunate but you did put yourself at risk by vouching for your friend. i don’t mean to sound like i’m on a soapbox as i have put myself in several difficult financial situations where i should have known better. i’ve had several cashcall loans, however, i read the entire document and realized this loan has to be short-term or not used at all. cashcall can and will screw you over, it’s up to you to minimize the damage. i just don’t like hearing people say they were ‘duped’ or ‘didn’t know what they were getting into.’ ignorance is no excuse, the loan document was write in front of you.
dave on September 17th, 2007
oops, the loan document was RIGHT in front of you.
Nancy on September 24th, 2007
I am considering getting a Cash Call loan. If someone can answer these questions, I would appreciate it. After getting a loan for 2600, if I paid it back in 5 months, would what it cost me per month? Also, can someone guarantee me that if ALL payments were made on time, I or my reference would NOT receive any collection or reminder calls.
I would appreciate any comments from previous Cash Call customers. I am somewhat leary of this company after reading things on the internet, but have trouble distinguishing the complaints from customers who paid on a timely basis and those that haven’t? Also does anyone recomment another personal loan company (not a payday loan company) other than Cash Call that may have a more positive reputation? Thanks!
justine on November 15th, 2007
I also agree that cashcall is a rip off once that I signed up for the loan then I started reading online about the APR as the guy was on the phone I told him I no longer wanted the loan and he was trying to make me believe that because a couple of the papers was already electronically signed that I had to continue I got harrassed for weeks after I didn’t finish the loan process. They tried to bully me into it.
Melanie Fowler on November 17th, 2007
Unbelievable. Some of the responses to the “Cash Call” interest rates are disgusting. Obviously some of the comments, such as the ones referring to people who have to take out a cash call loan as “getting what they deserve” and “ripping people off”, come from ignorant individuals who have no concept of the struggle to survive that hits millions of Americans every day. Obviously, these very judgemental people have not had to experience making very little money (especially in comparison to the cost of living these days), having very few resources, and having very large bills (like rent, mortgage, electricity, food, car payments, child care, school loans, insurance,etc…)to pay. Poverty does not just affect people without jobs people, it also affects people with 2-3 jobs that pay decent wages. Wake up people. The middle class is obsolete. There are very few in society today who have the luxery of just “deciding” whether or not a credit card bill is going to be paid. The “choice” usually is not one at all-Food and shelter, or the credit holders? You place the blame anywhere you like, but the truth is this: most of us are struggling to survive and will do whatever it takes to do that. Your ignorant comments placing blame on the people who cannot pay back the money borrowed because they were not fortunate enough to be born priveledged and one of the “lucky few” are rediculous. It is you who continue to endorse these sick and twisted credit companies and oppress others who are not as advantaged as you. You can tell yourself all you like that you have “earned” your status in life due to hard work and good moral character, but you would be lying to yourself. Millions of people, I guarantee, work 10 times harder than you, are 10 times smarter than you, and have much more perseverance and strength than you do. So, please continue with your ignorant comments and keep trying to oppress the less fortunate, and they will show you who the stronger and more intelligent person is.
Think Cash: A New Low in Short Term Loans: Read it at Lorien1973.Com on November 20th, 2007
[…] few months back, I saw a commercial from Cash Call which offered short term loans to those with bad credit. The interest rate on these loans were […]
Lynn on January 5th, 2008
Does anyone know of a loan site similar to cashcall or thinkcash but does not rip you off like they do?
Eric on January 23rd, 2008
I’m not sure if anyone has discussed this yet but to those of you who believe only older people or those with poor credit get these loans, guess again. I pulled out a 5,075 loan with a 59% interest almost a year ago. I found out today I can pay it off with a loan from a conventional lender with an interest rate less than a 1/3 of what it is now. I pulled the loan when I was 21. Younger people don’t have established credit and those of us who survive on our own without the help of our parents get pulled into this trap not necessarily because we are not educated on the terms of the loan but because the banks and credit unions will not loan to us due to our lack of credit. It has nothing to do with being poor either. I myself am way above the margin of what people my age earn but due to my single staus and young age, I am basically starting out from nothing. I will buy Cash Call one day, fire everyone and burn the place down.
Roger JAMES on January 28th, 2008
I need to borrow some money at least 5,000 I am disabled vetrain I had to weight two and one half years before I got paid if you no of any one that will make a loan to some one with bad credit at a fair rate of instress the only reason i runed my credit was because of my helth
Rubix on February 2nd, 2008
I am involved with them right now. I was hoping to have enough money from my income taxes to pay them back, but unfortunately, that’s not the case this month. Now I think I’m going to have to keep going with the monthly payments. At this rate, I’ll be stuck for LIFE!!! I was desperate when I took out the loan and now I’m even more desperate to get out of it…I don’t know what to do! I’m a single mom who is caring for my mom and my sisters kids, this money could be applied to rent, food…but instead…I feel like I’m being robbed every month! I wish someone could help me out of this!
Sara on February 12th, 2008
I have had this loan and thankfully my taxes this year was enough to pay off the loan. Don’t Don’t Don’t do it if you are thinking about it. Borrow the money from Friends, family just don’t take a loan with a 99.99% interest rate. I paid on it for 15 months $254 that’s $3304 not to mention the $75 up front fee and still had to pay $5100 to pay the loan off in full.
erik on February 22nd, 2008
I have had a loan with tem for over 2 years. I originally borrowed 2500 but 2 years later my balance is only at 2450 so you make the call whether or not I am being ripped off. Everytime I up my payments to get a little ahead they raise their interest rates, which apparently they can do individualy based on your state of residence. This company is nothing more than a legal version of borrowing money from the mob. They just ruin your life even worse. I would gladly let them break my legs to get out from under them but they would rather ruin my life instead. I have sold my car and moved to a crappy apartment in the ghetto just to survive mainly because of them. And yes they do target and prey on people who really don’t need to be getting these loans. I myself had no choice. It was either get it and have heat and food for my kids or go without. No one would even look at me for a loan after my divorce. All you high and mighty bastards who say its our own fault for being in this situation should try walking in my shoes for just 1 day. I guarantee you won’t make it through, might even be institutionalized after you have to get your pretty little hands dirty and do an honest days work. You make me sick. Try making an honest person of yourself instead of putting others down to feel better. When you wake up tomorrow look in the mirror and ask yourself if you are proud of the person who you are. for those of you who won’t lie to yourself you might not like what you see.
Cash Call Follow-Up Post: Read it at Lorien1973.Com on February 22nd, 2008
[…] This comment came in today and deserved its own post. I can’t vouch for its accuracy; but it’s not unimaginable, that’s for sure: I have had a loan with tem for over 2 years. I originally borrowed 2500 but 2 years later my balance is only at 2450 so you make the call whether or not I am being ripped off. Everytime I up my payments to get a little ahead they raise their interest rates, which apparently they can do individualy based on your state of residence. This company is nothing more than a legal version of borrowing money from the mob. They just ruin your life even worse. I would gladly let them break my legs to get out from under them but they would rather ruin my life instead. I have sold my car and moved to a crappy apartment in the ghetto just to survive mainly because of them. And yes they do target and prey on people who really don’t need to be getting these loans. I myself had no choice. It was either get it and have heat and food for my kids or go without. No one would even look at me for a loan after my divorce. All you high and mighty bastards who say its our own fault for being in this situation should try walking in my shoes for just 1 day. I guarantee you won’t make it through, might even be institutionalized after you have to get your pretty little hands dirty and do an honest days work. You make me sick. Try making an honest person of yourself instead of putting others down to feel better. When you wake up tomorrow look in the mirror and ask yourself if you are proud of the person who you are. for those of you who won’t lie to yourself you might not like what you see. […]
Mrs.B on February 29th, 2008
It is sad that companies like these are allowed to operate and pray on the needy. It doesn’t have anything to do with bad credit. Everybody goes through something at some point in there lives.So for the ones that think their s### don’t stink, you need to take a look at yourself because what goes up must come down and then you will find yourself in the same situation.
Al on March 9th, 2008
What the hell do they think we are? A bunch of dummies or fools! The Federal Govenment should get after these jerks because their interest and etc. is way way too high. I’d be damn if I fell for it!
Ms C on March 19th, 2008
I have truly been frightened out of applying for a loan. Thank all of you!
holsey on April 9th, 2008
I need an attorney in MI, someone like the guy who sued cashcall in CA…
Amanda on April 21st, 2008
I just want to say thanks to everyone for putting this useful information out there. I DID NOT take out a loan because of all the messages left for this company. THANKS!!!!!!
Amanda on April 21st, 2008
I just want to say thanks to everyone for putting this useful information out there. I DID NOT take out a loan because of all the messages left for this company. THANKS!!!!!!
This was a lifesaver.
michell on July 7th, 2008
my ex-husband stole $30k out of all of our accounts and then left me with all the bills. When i got the divorce i slowly worked to pay all of those bills. Now, 6 years later my credit is in a shambles. I took the last $5k that I had and bought a fixer-upper house. Whith the economy the way it is i have lost my other 2 jobs and must live on a parttime waitress salary. The guys that think they have all the answers should see what it is like to live so far down the economic food chain. I have to get that loan or I will not be able to pay my property taxes.Then, I will lose my home.