Interest accrual online pdl versus storefront pdl
Date: Fri, 10/13/2006 - 15:29
With online, what I am reading is that you borrow the principle and they deduct just interest every 2 weeks with nothing paying down the principle. With nothing ever hitting the princple how do you ever get it paid off? How is it that some here overpaid if all they have been paying is interest and not principle?
Does an online pdl only have a single interest accrual and all additional payments go to principle?
Anything to help me become less confused would be great, I'll still be dazed but I won't be dazed and confused. :D
Most state laws do not allow roll over/or interest only payments
Most state laws do not allow roll over/or interest only payments on pdls. I don't believe, at least in OH that you can just pay the interest on the pdl, you have to pay the loan in full which includes the interest fee.. Internet pdls will roll over your loan forever with nothing going toward the principal if you let them. So it is a continuous interest charge with nothing going to the principal.
so essentially the online pdl's never give you a mechanism to pa
so essentially the online pdl's never give you a mechanism to pay the principle and will just continue hitting you for interest until you contact them to get a pay off?
Exactly, and some of the internet pdls make it next to impossibl
Exactly, and some of the internet pdls make it next to impossible to contact them to pay on the principal which allows them to continuosly debit your account for the interest "roll over" fee, so eventually you have paid well over the principal and legal interest rate and have to block the debits or close your account to take back control.
The contract signed with the loan company has the date for how l
The contract signed with the loan company has the date for how long you are taking the loan. Every month the interest is charged until the due date of paying back the principal amount. In case, if a person defaults in paying back the principal amount with interests on the due date, he is going to get further charges on it till everything is paid off. Once done, you'll need the pif letter from the company.
