Watch out when cashing $101 check, says local woman

BY Jacob Brooks
The Daily News
Published/Last Modified on Wednesday, September 2, 2009 8:44 AM CDT


Bogalusa resident Nelda Burns recently received a check for $101 from a finance company.

But this is one check she won’t be cashing.

It’s not a scam, it’s not against the law, but when Burns said she read the fine print, she was flabbergasted.

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The annual percentage rate for the $101 loan is 350.39 percent, according to the paperwork attached to the check.

It’s a bona fide check already signed by the loan company, but the way Burns sees it, it’s not entirely on the up and up.

“All people are going to see is that’s a check they can cash,” Burns said.

She said she took it to the DA’s Office, who told her there’s nothing they can do about it.

After that, Burns brought it by the local newspaper with the message that this is a check people should not cash unless they want an enormously high interest rate.

“I’m concerned for the people of Washington Parish,” she said, adding the elderly or handicapped may attempt to cash it without realizing what they are doing.

That said, paperwork that accompanies the check clearly states the APR and what goes along with cashing the $101.

Those who do cash the check must pay it back in four monthly payments of $46 each, totaling $184.

Even the front of the check itself provides a written warning: “Cashing this check will enroll you in a program or a loan, or will cause you to be bound to repay the loan or purchase good or services which may cost you additional money, including finance charges.”

 

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Comments

    Cholly wrote on Sep 9, 2009 12:42 PM:

    " Ed, you really need to get a hobby or something. You have absouletly no idea what you are writing about. In order for a prosecution, there needs to be a crime. Ed, you should think more POSITIVE rather than just writing ignorant comments. "

    nasdfgo wrote on Sep 3, 2009 9:46 PM:

    " Regal Loan "

    Edmond Chandler wrote on Sep 3, 2009 12:26 PM:

    " "Right on, Elizabeth" .. these "scammers" need to be identified in PRINT where possible. Those who can least afford to be scammed, ARE the victims! Also, REPORT THESE SCAMS TO LAW ENFORCEMENT FOR PROSECUTION! Thank you, Elizabeth. ONE victim is one too many! "

    Elizabeth wrote on Sep 2, 2009 9:15 PM:

    " Why not post the name of the offending finance company? That would be a real public service.

    How disappointing that you printed only part of the story.. "

    st tammany wrote on Sep 2, 2009 1:12 PM:

    " These loan sharks should be put out of business! They prey upon the desperation of those in need. They could care less if you have the means to pay it back. All companies like this should be run out of town! "

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