I just got a ridiculious piece of junk mail that raises some questions. I recieved a check payable to me in the amount of $1000.68 with the phrase, "Enjoy the Holidays with a guarenteed loan from Security Finance'. All I would pay would be $128.00 a month for 12 months. Whew!!! What a deal! I feel for anyone math challanged or desperate enough to fall for this.
Annual percentage rate only 87.58%!!!
How is this allowed?
On the back of the check it states: This is a solicitation for a loan. Read the attached disclosures before signing this agreement. By endorsing the back of this check and presenting it for negotiation, you accept our offer and agree to the terms of your loan agreement contained in the disclosure statement attached to the check. Attached,they do report a Finance Charge of $535.32 (to be $55.00 Auuisition charge and $480.32 Installment Acccount Handling Charge).
Is there no usury law that should apply?
What agency should govern this? I have no confidence in Texas and would like to report it to the appropriate federal agency.
Thanks for any knowledge or advice you may have.