Title Loans Predatory by Nature: Calls for action to ban

My name is Leland. I'm a 44 year old Husband and Father of a 4 month old son and 6 year old daughter. I'm a mortgage broker and I've been hit by the recession pretty bad. I needed to take out a title loan to help my wife make ends meet. I have used Cash-2-Go in the past and paid them off no problems. I used them again this past year and here is where there is call for concern. If this is happening to me, it's happening to others.

I took out a title loan with CASH-2-GO under a set of lending rules that this company was operating under. I was very familiar with. I have always paid my loan off before it was ever due, and using the company’s current rules of interest application, before the interest was applied and thereby avoiding paying the interest. I paid the entire note off and a processing fee. I have repeated the cycle several times before paying the note off.

Well just recently, the company decided to change its policy about how interest is applied to its current loans in order to make more money. This is what Cassandra, the manager told me. I came in to pay my loan off and renew it as usual, and Cassandra told me that as of Jan 1st, my loan was not renewable even if I paid it off. Well I was concerned and upset that I would not be able to pay the loan back as I had scheduled when I took out this loan. This changes everything and doesn't seem even legal. Is it?

Well, I came in month later, (Oct 6 2009) to make my payment and renew my loan. My new emergency hardship plan for repayment was to gradually reduce the note size by 50% to pay it off by Jan 1st. Surprise for me; CASH-2-GO had decided that it would enforce its new policy as of Oct 1st 2009! They notified no one, sent no documentation to anyone. Cassandra to her credit admitted that she told me Jan before they changed it Oct, but also admitted to not sending notifications to any customers by mail or phone of the policy change. Monthly statements that normally go out stopped going out and Cassandra said she was on vacation and that's why customers' were not notified. I talked to corporate office manager that day and expressed my concern and intention to report this behavior. She granted me and extension until November 1st. I will not be able to pay off the entire note, and I cannot afford to let the interest at 300% APR be tacked on to the loan amount and have the interest on that begin to accrue. Before you blink, an $1800 title loan will turn into $4000-$5000 and then Cash-2-Go will want come and take my vehicle which is worth $10000-$12000 street value.

So, my financial future hangs in the balance of wily nilly title loan company that decided they we not making enough money and taking enough titles. In my world, new lending rules apply to new loans and new customers; I don't think they are allowed to change the LENDING TERMS on current loans or customers. I DON'T THINK IT'S LEGAL AND I THINK THE ATTORNEY GENERAL SHOULD SCRUTINIZE THESE PRACTICES. If President Obama's administration is serious about cracking down on predatory loans and lending practices, they might want to start with these types of companies. People who are desperate and have nowhere else to turn, have to trust to these companies and all the legal fine text and be subjected to their whims? Doesn't seem just.

We need the public to shine the light of the media on these villains. When times get tough, these predators come out of the wood work. This is a Call for Action!