Overwhelmed with personal debt, I procured a loan from the Little Loan Shop in the amount of $350.00. They deducted $105.00 (which I agreed to pay) every 2 weeks (on my pay day).
During the first payment, they debited my account at 12 a.m., on the day my payroll is posted. Unfortunately, my salary is not posted to my account until 9 a.m. This resulted in an NSF of $29.00. I called and a representative apologized but the fee could not be recinded. The date my account was to be debited was amended so that my account would be debited, the day after I am paid.
During this period, my debit card was compromised and I called the Little Loan Shop on two separate occasions, leaving messages requesting someone return my call so I could provide my new debit card information. I followed-up with 2 emails though none of my attempts to reach representatives at the Little Loan Shop were ever responded to. Due to this, I again inincurred another $29.00 NSF fee.
I finally paid off the $350.00 loan after 10 payments in the amount of $105.00 had been deducted from my account ($1050.00 to pay a $350.00 loan). A week after the last payment was debited from my account, an additional $20.00 were debited by the Little Loan Shop. I called the company and a representative explained that the $20.00 constitutes an collection fee because several weeks earlier, an attempt to debit my account had failed due to non-sufficient funds. I explained that this was incorrect and that my record clearly shows all payments due to them, were debited from my account. I also advised the representative that the incident occurred when I was forced to obtain a new check card because my old card had been compromised. I also told her that I called the Little Loan Shop on two separate occasions and also sent to emails, none of which were ever responded to or acknowledged.
The representative explained that they recently experienced a large turnover of employees due to numerous consumer complaints. She apologized but said there was nothing she could do.
Little Loan Shop answers their telephone phone if you are trying to procure a new loan or checking the status of an existent loan but "for all other calls" they are unresponsive. During this period, a representative called and left a message explaining that she was calling to obtain my personal opinion of their service, promising I would receive a "gift" if I returned her call. I called back leaving yet another message requesting that someone return my call but as usual, no one ever responded.
Little Loan Shop like all other pay day lenders are a predatory business which legally victimizes people who are desperate to obtain money. Probably because of a lack of credit or bad credit, these people have few options in obtaining loans from traditional lenders. Rather than finding the solution to their problem, they are preyed upon by pay day lenders whose charges are exorbitant and whose promises of a temporary solution are nothing more than a ruse by which to generate huge profits at the cost of the desparate.
I urge every reading this to avoid obtaining a "payday" loan. If your credit score is too low to help you obtain a personal or consumer loan from a lender, you may be able to obtain a loan using your automobile as collateral.