Loan Mart Predatory Lending

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#1

I joined for my brother because there must be something we can do to prevent these loan sharks from taking advantage of people desperate to survive. He put his 1996 pick-up (which he uses to haul junk) up as collateral against a $4,000 loan. He recently told me about it after paying on it for almost a year because his balance is now $4,700. So far he has paid $5,700 and still owes $4,700. I realize he should have never signed this agreement, but it’s too late for that. He has now given me permission to represent him as a 3rd party and my first inclination is to tell them to pick up the junky truck and buy my brother a new one. At least he’d have something to show for the next $5,000 he spends. I wonder if I would have any luck in small claims court (the contract has a clause preventing him from being part of a class action).

I realize some California legislation (AB 539) has been implemented against and title loans, but it’s my understanding this only applies to loans after Jan 1, 2020. I would be interested if anyone thinks I could take a stand on this to lower the pay back amount.

Interested in joining any action to prevent predatory loans, including Student Loans.

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#2

Hi Laura: How old is the loan and is he up against the original lender/creditor or a 3rd party collector?

#3

Loan Mart is the original lender and his first payment was made on 12/26/19. His last payment was made 11/9/20. He has accrued $5,700 in interest since then, paid Loan Mart $5,000 and nothing was applied toward principal. I have no doubt that Loan Mart knew about pending legislation when they gave him this loan.

My brother hauls junk for a living out of his old truck. He suffered brain injury in his youth and his communication/other skills are limited. He tries so hard to be self-sufficient and is reluctant to seek help from family. He only came to me after discovering he still owed $4,700 after all this time. I asked him why he would sign a loan like this (header attached) and he said he thought it was funny and called them back. The guy on the phone said it was a mistake and he would fix that for him. It would only take a short conversation with my brother to know he didn’t fully comprehend. He’s almost 65 years old, no wife or girlfriend, but he’s always helping neighbors and family. It’s heartbreaking really that he’s been conned by Yelp, a few customers and even an internet scammer who cleaned out his bank account two years ago. I asked him how he’s making these payments (we keep a close eye on charges made on the credit card my dad gave him) and he says he’s been paying $8 for each wire transfer.

I called them for an amortization schedule and put it into a spreadsheet (attached) and submitted a form to speak in his behalf. I’m ready to call them this week and any advice would be greatly appreciated. I’d rather put another old truck on a 0% 18 month credit card that my brother could pay off than pay these predators s another cent.

What actions do you have going on in San Mateo County, California? I am a member of several activist organizations and could spread your message to many who already want to Cancel Student Debt.