Loan Offer Raises Questions Over Fees

A quick cash loan offer has left a borrower with higher fees than expected. The Better Business Bureau issued a consumer alert for Mobiloans.

Susan Mortensen of Omaha needed a small loan to pay some bills so she said a mailing from Mobiloan lead her to an on line sales pitch. It said, "To find out how much you can borrow just click on apply now." So Susan did and entered her bank account number as requested. Susan said, "I went on and applied just to see if I could get approved. They automatically accepted me and deposited money without ever asking me what I wanted. She got $1,200.

The Better Business Bureau reports 70 complaints about Mobiloans. The BBB issued a consumer alert. Omaha BBB President Jim Hegarty said consumers report not understanding what the loan involves and higher than expected fees. Hegarty said, "Most of the payment goes toward interest so people make payment after payment after payment the there's little change to the loan amount.

Susan estimates if she continued with he loan payments it might cost her about $2,000 above the $1,200 she borrowed. Susan said, "I accept responsibility for accepting the loan and making the payment. I just think it was shady the way they went about it."

Fact Finders found Mobiloans is connected to The Tunica-Biloxi Tribe in Louisiana. The State Of Washington where there have been complaints issued an alert stating the Tribe claims sovereign immunity and asserts it is not subject to regulation by the state.

Calls and Emails from Fact Finders to Mobiloans have not been returned for comment.

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