There aren't a whole lot of tribal lenders that I like, but one of them that I do appreciate is Red Mountain Loans. Or should I say I tolerate them, because this isn't exactly the best tribal lending company around, yet they are not nearly as bad as some of the truly unethical operators. Their lending program has some flexibility, they have terms that can last for up to 16 weeks which isn't terrible.
At the same time realize that the truly excellent lenders that are tribally-based can provide loans of up to one year or longer, so when I say that Red Mountain Loans is alright, it's truly just alright and not a recommendation.
Tribal lending is a business that doesn't run on thin margins, it runs on extremely heavy margins. And those heavy margins are you (or the consumer that you may know, like your friend, mother, sister, co-worker, cousin) being tricked into paying lots of unnecessarily fees.
That's why when I say that a company is "alright" or "okay" in this business it really can be translated as them not being good enough to use as a consumer.
Even the 'good' companies in Native American lending, which I often chalk up as being Mobiloans, Plain Green Cash and RadiantCash, are very expensive when compared to other online lenders that are state licensed, traditional banks that issue some unsecured debts and physical lending store locations which are also licensed (and regulated) by the state financial regulators. So all of the Native American lenders have to be viewed as an expensive option.
Red Mountain Loans falls into the middle ground of these tribal loan shops. The company charges more interest and fees than quite a few of the good lenders, but at the same time there are even more tribal loan companies (especially the tribal payday operators) who charge substantially more money than Red Mountain. And that's no surprise, right? If I tell you that you are eligible for a 14 day loan or a debt contract that lasts for 16 weeks, which do you think would carry the more costly rate? Not too much logic to say that it would be the 14 day 'debt' product.
Here's the thing, is 14 days even fit the definition of a loan? I don't think it does, not in my book anyway, because a loan means the use of some other entities economic resource, but having the loan for only 14 days (a few hundred hours) means that you (the consumer) never really had time to utilize the funds in any meaningful way. The funds are due back to the lender so quickly that it nullifies the benefit of your receiving the funds in the first place.
Consumers aren't always happy with tribal lenders, whether they are installment companies or payday shops, and below is one of those unhappy customers back from 2012, where they weren't too happy about their experience with Red Mountain Loans...
I got approved for the loan which turns out to be the bad thing in the end. They told me to prove I was able to pay the loan back and in order to do that they had to see a bunch of my financial information. Then they wanted me to go get a cash card to be able to repay the debt. I said that's fine, I head over to CVS and get one of those Green Dot cards. After that, I ask how do I get this loan. I know this isn't a joke so the customer rep went on and on about how they are legit. I asked him why I need get a this card and why he can't just check my information like they do at other lenders, this isn't the first time I've gotten a loan. The guy said it's against the law to get into my checking account now. Anyway, I was a total dummy and did it like he said, got the Green Dot card. Then I called them back and read him the numbers off the back of the card, still being stupid. Finally he tells me to hold on, and don't use card. The story goes on and on these guys are just a joke, no reason to go through all this trouble for just a little loan. Things are pretty bad these days when it's so hard to even get a tiny amount.
Alright, so that review doesn't make you want to run out and get a loan at Red Mountain Loans. Just like so many other Native American lenders it sounds like this company was affected by the changes that so many banks instituted where it's not that easy (and sometimes not available at all) to use their ACH electronic funds transfer method. Most of the big tribal lenders have been blocked to some degree from these normally free services. Obviously this was the case here where the customer was disgusted at the fact that he had to go buy the Green Dot card and wait on the phone, nothing about this lending process was simple.
That used to be the calling card for all tribal lenders, that they had very few restrictions on who could get a loan and the loan application was super simple. Now things have changed and funding these high cost loans is no longer an easy transaction.
No reason to consider Red Mountain Loans for your next loan, as there are so many other better tribal lending options out there. A few of those better lenders include Plain Green Loans, Superior Funding, Mobiloans and Spotloan. I also like Clear Creek Lending and to a certain extent the new payday lender RadiantCash. All of these lenders offer what I consider to be better terms, better time frames to repay and higher dollar amounts to borrow.
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