In case you haven't read it we already did a lengthy post on customers who were complaining about their experience with Castle Payday. It turns out there were many other pages, all filled with more complaints against this tribal lender, which carry the same theme. That theme is to be very careful when dealing with this company.
There are a fair number of complaints against Castle Payday, scattered across a few sites. To be certain there are many more complaints against the truly low grade operators, which are companies like 500 Fast Cash, US Fast Cash and United Cash Loans. These tribal lenders provide very little in the way of help and rather than help they will charge extremely high rates on their small loans.
Unfortunately, Castle Payday is not too far off the mark from these other tribal operations. There are just a small number of decent tribal loan companies that have any chance of being rated as high quality or at least a firm that can be rated as usable.
Most of the Castle Payday complaints are in the same vein, all keying off the same theme, which is the fact that this lender has no problem for procuring customers through their marketing efforts and then letting them just pay the finance charges on the loan. And that's exactly what it is, the customer is not forced to just pay the minimum amount on the loans but it tends to be the most expedient and best option for the (many) customers of this firm which are basically broke.
There is no reason people would become customers of Castle Payday if they weren't already in a financial morass. So when these already trouble borrowers get a small loan, say for $400, then the better option on their payday is to pay just the minimum amount due which is $120 ($400 x 30% bi-weekly interest rate) rather than paying the $520 due to pay off the outstanding (the whole) loan. The "in trouble customer" will usually opt to just pay the $120 out of their paycheck rather than take the financial "hit" to pay the entire amount and close the loan. The tribal lenders (companies like Castle Payday) know this fact all too well, and don't doubt that it's part of their scheduled profit forecasts.
This whole situation leads to a bad scenario where customers of Castle Payday wind-up getting in trouble and once they get in trouble they start telling people that they know about their ill fortune. And this is where the many complaints against Native American lenders come from, and Castle Payday is no exception.
The complaint below against Castle Payday is typical of the bad outcomes that so many borrowers of tribal loans find themselves. The complaint is from August 2013...
I writing this update regarding Castle Payday Loans. When I applied for the $500 loan, I was told my total finance charge would be $175 for a total of $675 in repayment amount, and that was acceptable so that is not too bad. I was told my first payment of $175 would be the finance charge, but what they did not tell me was that I would be continually repaying that $175 every two weeks for a total of seven payments before any of the repayment money would go towards the principal amount. Once I pay the 7 payments of $175 I would have to pay 20 more repayments of $175 with only $25 of each payment going towards the principal of the loan. My total amount of money I would have to repay would be $4,725 before the loan would be paid in full. Please remember that I only borrowed $500 on the original loan. This is a strong warning to anyone considering borrowing money from this company. All I can say is borrower beware, just as the old saying goes.
So there it is. You may want $500, you may need $500, and you may desperately need $500 for whatever reason that is occurring in your life. But make sure to think this through and make sure to not just pay the minimum amounts on the loan because you can see by example what will happen.
It isn't going to be easy but if you borrow from Castle Payday make sure you have a plan to repay the money as quickly as possible. Otherwise, you'll be the next ex-customer to be on one of these complaint boards railing against the outlandish policies of paying over $4,000 in finance charges for what will then look like a very measly $500 loan.
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