I became involved with an online cash advance company called American Web Loan. I set up payments for the loan to be paid back. It wasn’t explained to me that the payments made would not cover the principle. Every payment only covered the interest. I notified the company who then explained to me that the payments only covered the interest and that after 3 payments of interest, then the interest + an extra $30 would be taken out until the payment is paid. I borrowed $400. by the time it is paid I believe it will be close to $1000 paid. I want to know is this legal? Is American Web Loan a legal company? What recourse do I have? I have asked my bank to stop payment until I can figure out the answers to my questions.
I want to know is this legal? Is American Web Loan a legal company? What recourse do I have? I have asked my bank to stop payment until I can figure out the answers to my questions.
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I visited their website at americanwebloan.com and it is not clear where the company is actually located.
Do you have any paperwork that has a mailing address on it?
There is this curious statement on their site that says, “Please be advised that you are accepting the terms of your loan subject to the Otoe-Missouria Tribe American Web Loan Act and under the authority of the Finance Services Regulatory Commission established under the Act.”
Please post your responses and follow-up messages to me on this in the comments section below.Is American Web Loan a Legal Company? - Tommie by Steve Rhode