ComplaintsforMogo

• Initial Complaint

  09/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I originally requested a loan in December of 21, I had just left a job and at the time couldn't make my financial needs. I applied for the loan through MoGo and there was an exceptional amount of runaround, it eventually took about a week to get approved. Once approved they ran me through the terms very quickly and ended up giving me a loan for $3,500. I began paying the loan bi-weekly for 50$ which is what I was promised throughout the term. Suddenly my payments were going up and down the lowest one I saw was 48 and the highest one I saw was 96, when complained about it they said something about a holiday it didn't make any sense and I just gave up after three different Representatives, mind you none of this is done over the phone only through chat. I have been paying this loan since that time and is an amount of $4,368 an average with a 78$ payment twice A month which is where it finally settled after a year of unexpected *** and downs. They now say I still owe $4,000 which unbelievable and very very wrong. I am now blocking the payments as asking them to re-evaluate the amount based on funds paid has gone unanswered. I won't be paying anymore as I have gone far over the agreed amount and they currently owe me 800$ in my eyes, since the agreed amount should have included any interest accrued. I want my ******

  Business response

  19/04/2024

  ************ got an interest only line of credit not a term loan. Minimum payments are interest and fees for optional services selected. We have reviewed his account and see that he was told on numerous occasions that minimum payments do not include any principal and additional payments were needed to reduce the principal balance. In the initial chat,before the line of credit was advanced, when informed about the payments the customer replied "That sounds great, I can handle that and will definitely be paying more than is required".

  The customer was also informed that their first payment would be around $59.16 but that their regular payments going forward would be around $76.83 and further informed that because interest is charged daily, the minimum payment amount will fluctuate based on the number of days between payments.When the customer inquired about the larger than usual minimum payment several emails were sent explaining that interest is charged daily so if a payment date changes due to a holiday the payment amount will change. The minimum payment for a 14 day period is $76.83 but due to the bank closure on the Canada Day holiday on July 1, 2022, the minimum payment was processed on the next business day which was Monday July 4th. The minimum payment increased accordingly based on the extra 3 days of interest of $13.25.The following minimum payment date on July 15 was for an 11 day period so the payment was only $63.57. The total amount paid for the payments on July 4th and July 15th was the same amount as 2 of the regular 14 day payments ($90.09 + $63.57 divided by 2 = $76.83). The customer's approximation of the total amount paid to date is overstated by several hundred dollars. 

  We are reaching out to the customer directly to attempt to settle this matter amicably. We will reach out to the customer at the email address associated with their MogoAccount as this is different than the email address submitted in this complaint. 

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