Internet's first get-out-of-debt community - 122,000 members

Hi everyone. I know that some of you might have read about me trying to help a friend with her checkngo installment loan. Long story short, she had to default because of the outragious payback amount. When she defaulted, she had paid $908.32 on a 1275.00 loan. Only around $200 of the $900 had been applied to principal. Shocked

Anyway, from the beginning, she made attempts to pay extra on her installments to get it paid off sooner, as she knew that she wasn't going to be able to keep it up for the entire length of the loan (thus was the reason she wanted to pay extra while she had the extra money!) She contacted checkngo and they told her it was impossible to make extra payments...it had to be the whole payoff if extra was to be applied. She was also denied her right to revoke ACH drafts, AND, when she called to find out the daily interest rate, she was told that they could not give out that information! Confused

She filed a complaint with the SC Dept. of Consumer affairs about 45 days ago now and got a response today. In her complaint she specified that a reasonable resolution for her would be to have the entire $900 applied to the principal and to pay the additional to pay back the principal she owed. Well, First Bank of Delaware actually responded, on behalf of Checkngo, and they agreed to her terms!!! She now only owes $366.18 for repayment of the principal and the whole thing will be considered PIF! At this point I was in disbelief, because I've heard they can be a pain in the butt, so she faxed me a copy so I could see it for myself!Yep! She has it in writing!!! Laughing

Also, she was told that she CAN send the payment by money order or cashier's check, so if anyone has a loan with them and is told that that is impossible, then they are LYING to you!
They said in the letter that they are settling due to "the inconvenience and confusion we have caused Ms. XXX." They also said "We have re-trained our customer service representatives regarding the types of payments that are acceptable, emphasizing the circumstances under which at partial payments can be received." Also, "We have coached the customer service representatives as to where this information can be found in our loan servicing system so that it can be communicated to the customer accurately."
There is lots of other blah blah stuff in the letter, but the main point is that my friend got a fair deal and she is going for it!!!

Posted: Fri Oct 05, 2007 7:24 am Subject:

That's great! i am so happy for her!

Posted: Fri Oct 05, 2007 7:25 am Subject:

Awesome! I bet she is breathing a sigh of relief. Now if more people would take action like she has, these companies will finally get the message.

Posted: Fri Oct 05, 2007 7:25 am Subject:

Me, too. She has really been worried about it and terrified that she was going to get sued and her bank account was going to get frozen. What a great start to her weekend. Smile

Posted: Fri Oct 05, 2007 7:27 am Subject:

Amen to that, Tiffany. I was skeptical that her complaint was going to do any good, since this is a legal loan, but this is proof positive that these companies cannot get away with unethical practices. So if anyone else out there is struggling with them, then file, file, file those complaints!

Posted: Fri Oct 05, 2007 8:10 am Subject:

This shows that every complaint counts!!! This is great news El!

Posted: Fri Oct 05, 2007 8:14 am Subject:

I am very happy for your friend.

ladybug

Posted: Fri Oct 05, 2007 8:53 am Subject:

That's right, Volley! Every complaint DOES count. Smile

Posted: Fri Oct 05, 2007 9:01 am Subject:

Awesome news!!!

Posted: Fri Oct 05, 2007 12:10 pm Subject:

Posted: Fri Oct 05, 2007 1:12 pm Subject:

Thank you so much for the support. Smile

I have been trying to get my friend to join the forum, but I think she was embarrassed and scared at the same time. Maybe she will join, as she needs help with her credit. I told her there is NOTHING to be embarrassed about and that you are the most supportive friends that I have ever had...And, I've never even met you in person. Smile

Posted: Fri Oct 05, 2007 1:23 pm Subject:

That is so true El!!!

Tell her to join!! Smile

Posted: Fri Oct 05, 2007 7:15 pm Subject:

if and when she joins, she will never regret it. there is nothing to be ashamed of because we all are or have been in her situation. tell her to come on and join the club. sun