Letter Usury Trap: Borrow 20,000 yuan a year after the interest near million

This loan voucher shows that  service fee is counted into the loan amount  reporter Feng took 20,000 yuan, after more than a year interest rate nearly million yuan per annum 41% fell into the letter high interest trap? -Co-ordination: Wang Yingjun: Trainee reporter Xin "I borrowed 20,000 yuan from the letter from the company last year, more than 29,970 yuan a year later, light interest near 10,000 yuan, calculated down to more than 41% per annum, I suspect that I fell into the appropriate letter usury trap." "Recently, the residents of Ms. Lee to find reporters, told reporters about their own loan repayment," the timely letter said monthly 2 points 3, no other costs, repayment said there is a service charge, the real interest rate higher than the general private lending companies. It claims to be China's leading personal credit and wealth management platform, claiming to be the first in the country to introduce a model for everyone, has established branches in 30 cities nationwide, employs about 5000 people, last September the size of the borrower reached 60,000 people. Jinan Yi Letter Branch in Jinan Guangdong advertising, looking for loans customers, Ms. Li is one of them. What is the fee for a credit service? Why does Ms Lee's real interest rate on repayment be much higher than the promise of a credit loan? The reporter launched an investigation. Loan after borrowed 20,000 yuan, more than a year after the interest near million Ms. Li usually small business, the general pressure of 3 months, but the first half of last year for a full 6 months, "I have to use cash in the purchase, from the bank loans long, strict requirements, just a letter from the company often sent ads, I gave them a call, want to borrow from there," Ms. Lee said. The account manager told Ms. Li that the interest on the loan from the letter of credit was 2 cents 3 and there was no other charge. "Because my son has a job, he can provide a detailed salary certificate and so on, then he used my son's name to borrow money." "I would like to provide a copy of the House ownership certificate, you can borrow more money, but finally or only to 20,000 yuan, the Customer Manager recommended 2 years to pay off." Last June 29, Ms. Li handled the loan formalities at the letter of credit. Since July 30 last year, Ms. Li deposited 1315 Yuan into the repayment account every month. Account manager said that when the repayment of more points, lest the bank deduction annual fee, small account management fee, the letter can not get full repayment ", Ms. Li told reporters, the letter is 1299.23 yuan per month for each instalment of repayment amount. By August 30 this year, Ms. Li has paid 1299.23 yuan a month for 14 consecutive installments, with a total repayment of 18189.22 yuan. In September this year, Ms. Li thought she would not have much money anyway, and wanted to pay it off in advance. 14th, Ms. Li began to deal with early repayment procedures, 15th will pay off all the money. But when the staff told her to need more than 11,780 yuan, she really startled, "a total of 20,000 yuan to borrow, has also been more than 18,000 yuan, how still to be more than 10,000 yuan?" Ms. Li said that the client manager had mentioned that the loan was "appropriate for prepayment". In advance, Ms. Li paid a total of 29970.02 yuan, 20,000 yuan to borrow 14.5 months, light interest near 10,000 yuan, than the client manager said the monthly interest rate of 2.3%, the annual interest rate of 27.6% is much higher. "I borrowed 20,000 yuan, the money is not much, those who borrow hundreds of thousands of to advance repayment, is not more suffer, I just want to be deceived by their experience to warn everyone, must not fall into the letter of the high interest trap." The public has queried the service charge of over $7,500. On 24th, Ms. Li provided the reporter with a loan voucher (IOU) signed by her son, Xiao Liu. Note on the loan amount is 27510.32 yuan, is not what Ms. Li said the 20,000 yuan, "I call the letter 400 customer service, they said it is services, but when the loan only said 2.3% of the monthly, and did not mention that there is a service charge." Ms. Li said she later called a number of account managers in the name of the loan, and the account manager just said monthly 2 points 3, and no one offered to charge for the service. "I knew I would have to charge such a high service fee, I would not loan from the letter," Ms. Li regretted. The journalist carefully read the IOU and found no mention of any content related to service charges. Ms. Li said that although the amount of loans shown on IOUs was 27,500 trillion yuan, they actually received only 20,000 yuan, "this can be found in the bank." In addition, the reporter also found that the loan voucher indicated in the monthly interest rate is 0.56%, nor 2.3%. Ms. Li, based on customer service explanations, speculates that 2.3% is not all interest rates, 0.56% of which are interest rates and the remaining service charge. However, this is only a guess, now Ms. Li can provide the IOU, repayment of the reminder letter there is no information on the standard of service charges, the amount of content, as for other materials, Yi Xin Jinan branch to the data has been sent to Beijing for the refusal to provide. High interest rate of more than 41% per annum, the trouble of prepayment? Ms Li is even more puzzled, even if the 7500 yuan service charge as interest, the real loan annual interest rate should be 27.6%, why the real annual interest rate for their loans far higher than this? "I would like to make it clear that the recent several times to find the appropriate letter, asked how the interest rate is calculated, they only said that the service charge, it seems that the service charge is not only 7500 yuan." If Ms. Li's actual repayment amount is 29970.02 yuan, the principal 20,000 yuan, the actual loan time 14.5 months calculate, may get 14.5 month's interest sum to 9970.02 yuan, monthly is 687.6 yuan, finally calculates the annual interest rate as high as 41.25%. According to Ms. Li from the appropriate letter to the "repayment of the reminder letter", if Ms. Li does not advance repayment, but the two-year expiry of the full settlement, the actual amount should be 31181.52 yuan. In other words, although Ms. Li early repayment nearly 10 months, but saved more than 200 yuan interest. Early repayment is a disadvantage, "before I had a mortgage in advance repayment, the bank is based on the actual loan of the time to calculate interest, never heard of prepayment interest is higher." Ms Li is quite puzzled. In accordance with the provisions of our law, the highest private lending rate should not exceed the bank's equivalent lending rate of 4 times times, beyond this limit, the excess of interest is not protected, the current one-year loan baseThe quasi interest rate is 6%, 4 times times 24%. Ms. Li's real lending rate is 4 times times higher than the benchmark rate of 17%. The letter said "prepayment is no longer interest" reporters on the website of the company official on the letter of credit, the characteristics of personal loans mentioned: "No need to borrow before the cost." We will not charge you any fee to provide you with good faith service until you have reached a loan relationship with the lender. "The letter does not give a description of the fees charged after the conclusion of the lending relationship." Subsequently, the reporter calls the letter 400 customer service telephone inquiries, staff told reporters, the letter of credit fee includes service charge and interest two parts, the average interest rate of about 10%, service fee of a few to 10%, the reporter asked if there is no upper and lower limits, The staff member only indicates that the audit department will determine the rate of interest and service charge based on the material submitted by each customer, and there is no upper or lower limit. And for the prepayment, customer service staff said that "prepayment only charged the month interest, for you to save the interest of each period." The reporter also to private enterprise staff, a monthly salary of about 3000 yuan and so on for the application conditions, contacted the letter of Credit Jinan branch Customer Manager Mr. Guo, he said 2.3% of the rate includes all costs, of which 0.8% is interest, 1.5% is the service charge. The reporter asked whether to repay in advance, Mr. Guo said yes, and "just pay off the remaining principal, no need to ignore the interest". Reporter and Mr. Guo learned that, teachers, doctors, civil servants and other enterprises in the establishment of staff, the loan rate of 1.6%; the loan rate for self-employed and corporate persons is 2.5%, and he made it clear that there are only three categories of loan rates for the company. What is the 41% annual coupon? Yi Xin Jinan Branch related people told reporters that the service charge is supposed to be, and it is certain that the company's staff has made all the things clear to the client, stressing that "Ms. Li has signed the contract, if there is any problem, Ms. Li herself and the company, do not need other people to intervene."