American Web Loan - Warning Warning Warning!!!!

American Web Loan - bad business

American Web Loan - AWL are Scammers!!!

It seems nothing is safe when it comes to your money these days. You need to borrow just a bit of money and suddenly there are dozens of companies and “banks” offering to loan you the funds for just pennies on the dollar. Or it would seem. Of course what these banks don’t tell you is just how terrible some internet loans can be.

The Simple Paperwork

Taking out a loan isn’t simple necessarily, but it shouldn’t be as complicated as buying a house – unless your loan is a mortgage of course. But if you’re borrowing $500 and you seem to be signing something that seems too good to be true, check the fine print.

Often a bad lending company will hide any number of problems down in the fine print of your loan paperwork. This is even truer online where a “bank” can exist for just a few days before disappearing into the abyss of the internet. Read, read, read. If you don’t know every detail of the loan, don’t sign off.

And never trust what the customer service rep has told you. After all, his job is to get you to sign. Not to advise you of your legal rights.

Interest Payments

If you’ve never had a bad loan, you don’t realize right away what is happening when the money starts to disappear from your bank. The loan repayment is set up through your bank so that you don’t have to worry about late payments, etc. But you realize quickly that you do have to worry – the payments don’t seem to stop when they should.

It would seem that some online banks never actually apply the payment to the principal of the loan. Instead they just allow you to keep paying interest on the loan (at an exorbitant rate, of course) until you figure out the scam they are pulling.

What should have been a $500 loan paid off in $650 worth of payments now becomes thousands of dollars as you pay bank fees and interest month after month without ever actually tackling the loan itself.

Stopping the Cycle

If you find yourself stuck in an unethical or bad loan, you are the one who must step up to take care of business. The loan company certainly isn’t going to help – they are robbing you, why would they stop? Involve the help of a lawyer if you can, but a more direct and effective means may be to go directly to your bank.

Tell you bank what’s happened and request that the bank stop allowing the charges to your account from the company. The bank will likely assist you in this process and you may even have to change bank accounts completely before they will stop. While it may not be ideal, going through the hassles of changing account numbers should give you some blessed financial peace at last.