I borrowed $1000 from AWL in May of 2016 and set up auto payments of $179.29 every two weeks ($359 month). They NEVER explained that the payments would go to interest only, but they did tell me there would be 7 payments.
This would amount to paying back a total of $1255. So I agreed, because I really needed the money for my daughter who was ill and out of work and had two small children. I figured it was comparable to payday loans that are high interest. When the 8th payment was taken out of my account, I called them and was told, oh no, the payments would keep going until March, 2017.
I then closed my account in November and got a new one to prevent them from taking anymore money. By then I had paid them a total of $2334 on a $1000.00 loan! They called for a few months, but I would not answer their calls. Now a year later, I received a phone call by someone claiming to be a law office (from a similar number from before) saying I was being sued by AWL but I could agree just to pay them $1300 and they would drop it.
Then they told me that if I didn't pay that I would be taken to court to get 3X that amount from me. When I tried to explain what the nasty situation was (thought I was talking to a lawyer) he accused me of being untrustworthy, and a liar! Said he didn't believe a thing I said to him! I was pretty hot and then hung up on him.
Realized it was just AWL trying a different tactic. We will see if I get any "legal" paperwork in the mail or a court summons! These loans are illegal in Virginia and I found that out, unfortunately, the hard way.
I am going to contact the OAG here in Virginia. There is no way I am paying $4000 back on a $1000 loan and now they want more!
Product or Service Mentioned: American Web Loan Loan.
Reason of review: Problems with payment.