Legal Question in Banking Law in California

Intrest rate on cash loan
My husband and I were in a fix last April and needed money quick. My husbands co worker suggested a company that advertises on TV to get money fast.We live in California and the company is based in S. California. well we were so desprite that we called and were approved for 2500 they e-mailed us the loan papers to sign and e-mail back. They told us to get it back quick so they could get the money deposited in our account. so we glanced over it and sent it and recieved the money the next day. well we made our monthly payments and when we recently checked to see what we owed we were shocked that we still owed 3000. We inquired on the intrest rate which verbally was never told to us and it was 96% and the APR is 99.25% we put 2000. more down and have 1000 to go. That mean we will have paid 3000 in intrest on a 2500 loan. I know we were dumb to not question the intrest rate but can a company charge that much?? They are preying on the deperation of people.

Asked on 6/01/07, 12:06 pm

JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

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Re: Intrest rate on cash loan

Sadly, while they may be preying on desperation, no one forced the loan on you.

The bigger issue is whether the charges are legitimate. That may be a problem.

We would need to review the loan document and any disclosures.

Answered on 6/01/07, 12:52 pm

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