OK, first off, yes, I was suckered into this “scam” where you get a loan to pay off high interest credit cards…with a super high interest loan.
I’m just wondering how badly scammed I was. I’m just paying off (10 months early) my transcanada credit loan but I’ve noticed something funny (and I wanted to get the straight dope before I make a fuss).
I got a loan originally for $3000. On my first payment of the loan I got a receipt stating the inital amount of $3600. I thought they tagged on all the interest I would be paying right up front (since it’s a fixed loan, it’s not a revolving credit line) I thought this was just the way it was done.
Stupid me, I wasn’t really paying attention. I kept paying the “normal” amount but in the past month I got my bonus and I’m getting ready to pay the account off. Today I paid 4 months worth of the loan (with the last amount I’ll be paying next week) but I noticed that I’m paying interest on the amount I’m still owning.
So is it legal for them to charge me a $600 “interest” charge up-front and then charge me interest every month? I guess with all the paper work I signed they probably have the legal right to a kidney at this point but I’m convinced something shady happened.
Now I’m a little ticked. I just wanted to know if anyone else has this sort of loan? I couldn’t find anything on this company online, I kept getting bogus “search engine” matches through google and couldn’t find anything at all.
Thanks for any help! It’s only money at this point but it’s annoying. I think I’ll stick to credit card “loans”. At least I understand how their interest works!