Hello good people.
I am currently trying to help a friend of mine get his finances in order because neither his wife nor he are good with money (his words, not mine—but all evidence points toward it being accurate).
While assessing his general situation, we have come across
two high-interest loans he is currently struggling to pay off. Both these loans seemed highly dubious to me, so I decided to do some digging online—which has led me to this community.
From what I have gathered here so far, the contracts for these loans are indeed not lawful and hence do not have to be adhered to; the consensus appears to be that merely
paying back the principal is enough to fulfil one's obligations. I am, however, not firm on the legal intricacies involved, and since I do not want to give my friend incorrect advice, I thought I would start a new thread here and ask about his specific case, to be certain.
The situation is as follows: he lives in central
Florida and took out two loans, online, around Christmas last year, so roughly
twelve weeks ago. One of the loans is over
300 USD with Radiant Cash, the other over
450 USD with Lakeshore Loans.
Both of these companies are
tribal lenders, as per the legal information on their websites. ("RadiantCash Loans are offered by Ishwaaswi, LLC dba RadiantCash. Ishwaaswi, LLC is a Native American owned business created by and for the Lac Du Flambeau Band of Chippewa Indians"; "Giizis LLC dba Lakeshore Loans is a Native American owned business operating within the interior boundaries of the Lac du Flambeau reservation".)
Within the above-mentioned twelve weeks,
he has paid approximately
370 USD to Radiant Cash and
540 USD to Lakeshore Loans—so already considerably more than the principal, yet the payment plans are set to run their course for another four months, with further payments of approximately 700 and 1,000 USD respectively.
As I understand it, such exploitative interest rates as proposed by these tribal lenders are
not legal in Florida, and the
contracts therefore not binding. Before I advise my friend to follow the instructions found in
this thread, however, I would appreciate some feedback by the fine folks of this community on this specific situation.
Also, my friend has voiced
concerns that butting heads with these lenders might
affect his credit score/rating. Is that something he needs to worry about?
Thank you in advance for any advice you can offer.
–Moerges