If it looks too good to be true...
Read more: Local, Business
MARQUETTE COUNTY -- In these tough economic conditions, people are turning everywhere for help...even online companies that offer cash advance loans.
In December, Kimberly Rahn of Sawyer needed some cash fast, so she turned to her computer for help.
"I wanted to pay off my phone so I checked with all those other companies online and all I was able to get was $200,” said Kimberly, “so I went with this 500FastCash because they weren't going to check any of my credit. My credit is horrible."
Kimberly is referring to 500FastCash.com, an online payday business. They gave her a loan of $200 to pay the phone bill. But then, according to Kimberly, they started to take out more and more money from her bank account.
"I'm so far in debt, I don't need this,” Kimberly said. “You know I'm about $8,000 in debt and I just can't afford to keep paying this company. Right now they've taken out $290 from me, and my original loan is for only $200."
Kimberly says they told her she would have to pay $580 for her $200 loan. 500FastCash declined to comment for this story.
The Michigan Attorney General's office says before you agree to anything, do your homework first. Google the business or check with the Better Business Bureau.
At Check and Cash in Marquette, they say their customers always know what they're agreeing to.
"We do have a fee chart posted and it is on our contract that says what they're going to be paying back on their due date," said Trish Morcom with Check and Cash.
As for Kimberly, she says she didn't think she'd have to pay a service fee when she signed up and she doesn't remember seeing a contract. A hard lesson she admits, and that she doesn't want anyone else to make.
