Update on Loan Sharks

Last night I paid off a small loan for an elderly lady and closed her account at a local small lender. I asked for a print out of all of this lady's transactions, but was told it was against company policy to give out printed copies. The manager did take the time to go through the account verbally and let me write down the information. She opened her account in March of 2002 and I closed it yesterday September 2005, a period of 43 months. In that period of time, she refinanced her loan 11 times. As far as I can figure from the limited information they would give me, she "borrowed" $1103.00 and paid them $2511.00. It is unclear how much of the $1100 was borrowed to pay on the note. These people loaned $200 to a 76 year old senior citizen living exclusively on Social Security. It was supposed to be paid back in 4 months and supposed to cost her $288.00.



The following article was originally posted in July 2005:

Carlsbad Loan Sharks
Check out the NM Attorney General's web page http://www.ago.state.nm.us/divs/cons/loans/cons_loans.htmShe is warning all NM citizens about the predetory lenders in NM. This is a list of the ones in Carlsbad:

Sun Loan Co., a corporation from San Antonio TX; Liberty Finance, a corporation w/ a Carlsbad mailing address; National Mortgage Co., a corporation w/ a Carlsbad mailing address; Security Finance, a sole proprietorship owned by A.R. Briggs Carlsbad address; 1st USA Title Loans, owner - Anthony Williams Carlsbad address; Hometown Mortgage Service, owners - Rene & Cecilia Salcedo Carlsbad address; Zia Finance, a division of Security Finance - see above; World Finance, a corporation w/ a Carlsbad mailing address; Check n Go of NM, a corporation from Madison Ohio; Fast Bucks of Carlsbad, NM LLC, a corporation - lists Charles Horton, owner; Home Pro Mortgage, a sole proprietorship owner not listed manager- Oscar Caballero; Grumpys Loan Center, corporation w/ Carlsbad address; Associates Financial, no owner listed / primary contact - Mike Sandate; Your Credit, Inc, a corporation w/ Carlsbad address pc - Royal Management; Easy Money of NM, Inc., a corporation w/ a Virginia address pc - David Greenberg; Pecos Valley Mortgage, a sole proprietorship -owner, Tommy Martinez.

This is a list of most of the current loan sharks. At least if they are owned by someone from Carlsbad, the money stays in the Carlsbad economy. The ones that are owned by out of state corporations bleed the money from our economy. Carlsbad cannot afford these businesses.The AG has commercials warning you against these places. If you skip a payment at a payday loan place and don't make it up, all of the rest of your payments just go to interest. You will still owe the same amount in a year. The title loan places can take your car if you miss a payment.Think - Some of these loans cost more than 750% annual interest. No one can afford to borrow from them. Don't do it. The majority of their clients are on Social Security or minimum wage. They are taking advantage of desperate people who can least afford it.