Single mom loses car using it to secure $700 title loan to pay son's dorm fee

[Liberal_in_LA]

she paid more than $1000 on a $700 loan. that should have been enough for the greedy company


Borrower Nightmares: $700 dormitory fee costs family its car



Mildred Morris, a single mother in West Virginia, lost her car after using it to secure a $700 title-loan to pay her son’s freshman college dorm fee. Amy Biegelsen/Center for Public Integrity

Morris started the process of securing a college loan to pay tuition for her son, Jonathan, to attend the American Musical and Dramatic Academy, but she was caught off guard by an unexpected and sudden $700 fee to hold a dormitory room for him.

A single mother of two in the town of Martinsburg, W.Va., 90 minutes northwest of Washington, D.C., Morris works in the technical support branch for the Coast Guard office that issues merchant seamen the equivalent of a driver’s license. Although she had a steady federal job, Morris didn’t have any savings or credit cards, and with the tough economy couldn’t scrape together the $700 fee from friends.

She did, however, own a sporty, green 2002 Pontiac Sunfire free and clear.

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It wasn’t until later that she realized how high the interest rate on her loan was — 300 percent annually.

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Many months and over $1,000 later, Morris called it quits, according to a complaint she filed with the West Virginia attorney general. The office is now investigating Fast Auto on behalf of Morris and other consumers .

http://www.iwatchnews.org/2011/07/15/5234/borrower-nightmares-700-dormitory-fee-costs-family-its-car

[blueamy66]

1. Sorry, but when you sign for a title loan

you should know what you're getting into.

I don't like title loan companies, but they serve a purpose.....and if you haven't done your research, you shouldn't use one.

[murielm99]

8. People don't know.

These companies prey on the poor, or on those with damaged credit. They feed off their desperation and ignorance.

These companies need to have severe restrictions placed on them.

[blueamy66]

10. People don't know?

It's spelled out quite blatantly on the paperwork that they sign.

I took one out once. If I couldn't pay the full amount, I'd make an interest payment and extend the loan.

I'm sorry that she lost her car, but she should have done her homework.

[Liberal_in_LA]

14. Not everyone has your large pulsating financial brain

[blueamy66]

18. Then they shouldn't go to a title loan company.

If one can read, one should be able to understand an interest rate.

But thanks for the compliment.

[CoffeeCat]

24. LOL!!

This situation isn't funny, but your post was spot on and hilarious!!

I read it aloud to my husband and he enjoyed your razor-sharp wit.

Seriously though...loansharks like that understand very well that they are taking advantage
of people. It's unfair.

[blueamy66]

27. please explain the "razor sharp wit"?

I dont' get it.

What was so funny about it? Another dig by another DU member?

You obviously can read.....I'm guessing the woman in this article could read the HUGE interest rate signs in these places.

So, what is your solution? Just let her go with the $700?

[Cherchez la Femme]

51. Psst...

that post wasn't to you.
It is not YOU who evinced razor-sharp wit.

All I saw from you was a willingness to give an unasked for lecture,
along with a sense of false self-superiority.

[exboyfil]

32. This story cuts so many ways

On the one hand some sort of usuary laws need to be in place. I recognize that this will limit access to credit for the poor, but that could stop abuses like this. West Virginia already makes this practice illegal, and, if only this lady had known this, she might have avoided collection efforts in West Virginia (a question could be what residence she put on the loan documents - the company operates in Virginia) - still they took a West Virginia title. Also most states have laws against contacting employers regarding debts, and it sounds like this was part of the harrassment process.

What she did was get a $700 loan secured by a $2,000 asset. The title company, while slime, did spend money in the loan and collection process (including going into West Virginia and taking the car out of the state).

On the other hand the poster which said she should have known better is also correct. She is a federal government worker for goodness sakes, so I would expect her to be intelligent. Her job requires reading and writing at some something like a High School level I would expect.

Why is the son going to a $30K/yr tuition Musical Academy? I would expect with his talent he could have gotten a full ride to WVU which would have made it easier on dear old mom. Also what does he plan to do when he finishes at the Academy? Performing arts are notoriously hit or miss when it comes to finding employment. On the other hand hats off to him for being at such a prestigious school, but, he has to remember while pursuing his dreams, to consider the needs of his family. He is probably over 18 now and a man.

Also everytime I hear a story about a single parent, I have to ask where is the other parent? Why do reporters never ask that question? The son was not found under a cabbage leaf - a father is somewhere. I am sorry that I offend some with this comment, but as a good father, I resent the hell out of the sperm donors who just walk away from their obligations. This is a very talented kid who deserved a better sire (assuming his father is not dead of course - in most cases that is not the situation).

[csziggy]

36. Why blame this woman for the title loan company's usurous practices?

Those practices used to be illegal and IMO should still be. Even "legitimate" lenders are charging rates that historically were illegal - and they are being very picky about who they lend to. If you do not have a large chunk of money already, they don't really want to do business with you.

The son is probably going to the American Musical and Dramatic Academy because he is extremely talented and managed to get into one of the few slots available. For very talented people, getting into the right places for training and to make contacts is essential. Often a state university though they may offer the programs will not have the same level of training and opportunities for their students. As you say, making a living in the arts is hit or miss and a very talented young person should take all the advantages they can.

My nephew was talented enough to get into the Boston Conservatory of Music. As a result, he has made an immense number of valuable contacts and has worked and supported himself after getting his bachelors and while getting his masters. If he had gone to one of the state universities as my parents wanted, he would probably be working at minimum wage as his equally talented but less ambitious brother is stuck doing. As it is, he is teaching and doing production work and making a really good name for himself in the music business.

According to the article, the mother was working on getting loans for his tuition but the unexpected deposit for the dorm. She may live as many do totally on a non-credit basis and have little experience with getting loans. I know people like that - they are completely capable but have absolutely no idea about the best way to get a loan or the best places to go to. And banks certainly are not willing to help anyone these days.

As for your comments about her being a single parent. :wtf: Just because she is single, you are piling on? What business is it of anyone else's why she is single. For all we know, she could be a widow, could have dumped a useless husband, or could have been in any number of situations which have absolutely nothing to do with her circumstance today and which are none of our business.

[exboyfil]

37. You don't think that bringing shame back for

fathers who step out of their responsibilities would not at least have some effect? Yes it does have an impact on this story and any other story when a single parent is struggling to raise a child. They are usually women, and every man you steps up to the plate to support his own children should be putting societal pressure on those which do not. I would be proud to have this child as my son. I am not talking about putting a scarlet letter on the mom - she has done a great job with this kid under very difficult circumstances. I apologize if the father is dead, and I did put that caveat in my post, but in most cases (I have so many in my own circle even) I hear that the father is off someplace doing who knows what, but what he is not doing is supporting his child. Maybe the reporter should try to hunt him down and stick a microphone in his face and ask why he is not stepping up to the plate. That is a great story in of itself.


The family is in financial difficulty in part by his choice of a college. You are right about him having more opportunities in this academy, and it is probably the right choice for him, but the question does need to be addressed. Somehow the $30K in tuition is being taken care of, so what is the obligation for the final $700.

I said at the top of my post that this activity should be illegal, and it is illegal in West Virginia.

People need to take ownership for their lives. My post was far more sympathetic towards the mom than the other post which said she should have known what she was getting into. She had to go out of state to get this loan. At what point how can we protect individuals from themselves?

[csziggy]

38. The issue of where the father is is not part of THIS story

But since it seems to bother you so much, why don't you go hunt this woman down and harass her about her son's missing father?

The real story is why are none of the banks who got the billions in bail outs willing to help Americans who are just trying to make better lives for their children? It seems today that the only way for the average person to get a loan is to agree to absurd amounts of interest. Unless you already have money, you cannot get any kind of deal on a loan.

For some people I know who have never had a credit card or borrowed money from any place other than relatives, the only recourse they would have in a bind would be a pay day or title loan place. Banks will not even talk to them about a loan, even banks who they have had a checking account with for decades. I know this because they have asked me for help.

Why don't we ask the reporters to find out why average working people who usually live within their means cannot get small loans at reasonable rates? And not make value judgements about things that are not relevant to the real issue?

[exboyfil]

41. Dad comes up with the $700 then it is part of this story

What is harssing about asking about the father of the son. She will either give the name or she won't.

You are right about the abuse in the financial system, and I am as angry as anybody else about the situation. Growing up my family had to occassionally get loans from pawn shops so I don't know if the situation for unsecured loans is any different today. West Virginia has already made this type of loan illegal, and she had to go out of state to get the loan. Virginia should also change their law as well. West Virginia AG is looking at loan abuses, and I hope they burn the title loan company. Calling her employer is ridiculous and illegal in my state.

[KittyWampus]

39. Morris "works in the technical support branch for the Coast Guard office"

She sounds like she should be intelligent enough to understand what she was signing.

[HipChick]

40. Is she issuing CAC cards? Because there's not a lot to that..

the equivalent of drivers lic

[Odin2005]

19. Not everyone is smart enough to understand legalese.

[blueamy66]

20. Then don't sign a legal paper.

????

[Joe the Revelator]

26. This......when you sign, you guaranteeing that you understand the document....if you don't ....

Don't sign it.

[hobbit709]

11. The compassion just drips there.

Sometimes people have little choice. They company got a 43% return on their money but evidently that wasn't enough.

[blueamy66]

16. Compassion? Why?

What, she signed a legal document and knew what she would have to repay....and I am supposed to feel sorry for her?

I just got up at 4 am to put in 8 hours of OT...which I am lucky to get, even though I hate it...so I can make my next house payment. I am tired and beaten down. But, I am not dumb enought to sign for a loan with a HUGE interest rate just to put my kid in a dorm.

What is the solution? Free university for all???

[sueh]

21. Yes, free university for all is the perfect solution.

[Sherman A1]

31. Precisely

Agreed & Well Said. That is exactly the correct solution.

Making condescending remarks about those in desperate straights trying to make sure their children get a better life, however is not the right solution

[CurtEastPoint]

22. "Free university for all?" It's done in lots of places. Not here, of course.

[blueamy66]

48. But this woman's child would need free housing as well.

Come on people. If you cannot afford it, don't buy it.

[starroute]

12. It's easy to say "should," but most people are financially naive

Just as sick people can't be expected to shop around for medical bargains, a single mother trying to put her son through school can't be expected to research the details of any loan she has to take out to make that happen.

People constantly get screwed over by their own ignorance, and it's cruel to blame them for not having known better.

[WatsonT]

49. If they are not mentally sound to be held to these contracts

they shouldn't be allowed to sign any contracts.

Someone is either a ward of the state with no personal responsibilities or a free adult that is held to their agreements.

[starroute]

53. How do you translate "financially naive" into "not mentally sound"?

Or were you responding to the wrong comment?

The problem here is not one of individual responsibility but of a dysfunctional system. I see is as parallel to the current situation where contracts for everything from employment to cellphone accounts require binding arbitration in the case of any dispute, thereby cutting injured parties off from access to the courts.

It's very easy for you to say the people who sign these agreements are "free adults" who should be held to them. But somebody who has a gun to their head is not free, and somebody whose only option to being unemployed or doing without crucial services is to accept one of these contracts is not free either.

The degree of real freedom in our society is shrinking rapidly, if you hadn't noticed. And in its place we get a stack of phony freedoms -- the freedom to starve, the freedom to be homeless, the freedom to die -- if we can't or won't sign away our options.

[WatsonT]

54. If they can sign a contract they ought to be held to it

whether they are "naive" or not is irrelevant. Either they should be free to sign contracts and be held to their agreements, or they should be barred from signing contracts like minors.

[Indykatie]

13. No Credit Cards No Car Loan But Still Couldn't Manage to Get Loan

any other way? Hard to believe that this was the only avenue for someone with a full time job. Sad to hear stories like this but sometimes people fall prey because they simply have not planned for the unexpected and we all know that happens sooner or later.

[dkf]

17. Federal job too.

Good as gold.

[Joe the Revelator]

25. +1... you sign a contract and thats that.....who's dumb enough to do business with these companies ?

[TBF]

34. They "serve a purpose"? Yes, a completely predatory purpose.

I suppose if you like capitalism you might go for ripping off folks like that.

[Drale]

2. 700 bucks to hold a dorm?

OMG it was 150 for me at UIC here in Chicago and everything in Chicago costs more then any place else, well I guess except this.

[Liberal_in_LA]

4. Colleges nickle and dime kids to death.

[Drale]

9. Believe me I know, I just transfered to UIC

but even at other universities I thought about going to including some private ones, none of them had a housing fee of more then 200 bucks.

[murielm99]

3. I hope this poor woman gets her car back.

She has paid for it many times over.

Most people don't realize what poor or credit-damaged people go through just to get ahead or stay even. It is almost impossible to make any improvement.

So much for bootstraps.

[Ruby the Liberal]

5. It is usury and should be illegal

Hell, the mob didn't charge 300% back in their day.

This is why it is critical that Congress STFU about the Consumer Financial Protection Board (Bureau?).

[Johonny]

30. +1

[Mimosa]

6. Yikes. Fast Auto advertises on TV all the time.

I figured out those auto loans are a way to rip off the poor.

I feel for Ms. morris. Her son's going to rip her off too by not getting training in a field in which there is a strong likelihood of steady employment.

Only 10% of people who enter the entertainment industry as actors or musicians ever can support themselves with regular work. I heard this some time ago from a well known actor.

[napi21]

7. I feel so sorry for anyone who feels the only resort is to use one of

the thieving title co's. A friend of min did before she ever told me about it. She borrowed $180.00 on her Suburban (don't remember the year of the car) and she had to pay bck $250.00 in a bit less than 60 days or she'd forfeit the car. I know her car was worth well over $5,000 and I gave her hell for ding such a stupid thing. She said she simply had no choice.

[patrice]

15. Fucking vampires! I know people who got into difficulties with those. They **CAN'T** get out!

Sick shit, that!

AND there are credit cards out there almost as bad.

[dkf]

23. Kind of makes me wonder how the son is going to get though his college days.

Good grief tuition and housing is $35,000 a year.


http://www.amda.edu/scholarships-financial-aid/tuition/


FOR STUDENTS WHO BEGIN STUDY IN THE SUMMER 2011 SEMESTER
Tuition and fees (per academic year): $28,449
Housing and fees (per academic year): $6,700
Total Tuition and Housing (per academic year): $35,149

FOR STUDENTS WHO BEGIN STUDY IN THE FALL 2011 OR SPRING 2012 SEMESTER
Tuition and fees (per academic year): $29,960
Housing and fees (per academic year): $6,700
Total Tuition and Housing (per academic year): $36,660
Living Expenses
Living expenses for the year are ESTIMATED to be about $200 per week. This estimate includes the cost of food, transportation, laundry and miscellaneous living expenses. Please remember that this is an estimated average cost, and individual student expenses may be more or less than this amount depending on personal needs and living habits. Students are encouraged to make a budget for their living expenses. Students who would like additional assistance and budgeting resource materials may contact the Financial Aid Office.

Books & Supplies
Book requirements vary based on the semester and the program of study. Estimated costs for text books for the first academic year are approximately $150 to $200 for conservatory students (two-year programs) and approximately $300 for BFA students (four-year programs). Students will be provided detailed information regarding books and supplies upon acceptance.

[murielm99]

28. College, if not now, will soon be for the rich only.

My three are early thirties/late twenties. They all had scholarships and good deals. But they still have large student loans. We helped as much as possible. I don't imagine this woman can help even as much as we did.

Community colleges are the answer. Many people can do two years at a local college, as long as they keep up grades good enough to transfer to a four year school. Others simply have to go to school part time, or drop out periodically to save up money.

[exboyfil]

33. This is a $30K/yr. exclusive academy

To even get into the academy he probably had the talent to get a free ride to WVU or other state university. I expect they gave him a very attractive financial package to attend.

You would be surprised in what is happening with community colleges at least in my state. Our local community college charges $4500/year in tuition and fees for two 16 hour semesters. The comparable local state university charges $7400/year. While you have commuting/housing considerations, the spread is not that big for adding a fifth year to your education (you cannot do two years at a community college in Engineering or Science and hope to graduate in four years - many of the second year courses are not even offered at the community college and the Freshman courses do not have the rigor of the University equivalent).

For me it is even starker. It is 2 miles to the university and 11.5 miles to the community college. Assuming you travel to the community college 120 times/year, then you are talking about a difference of over $1100 assuming $.50/mile. Our next door neighbor's son goes to the community college, and I frankly cannot understand it.

My youngest is already planning on staying home for her undergraduate as she tries to save every dime she can for medical school. We are blessed to have the university so close.

Community colleges can make sense in some cases. I took five classes from one while in High School, and our local High School offers about 10 community college classes at the High School which is nice. One of the offerings is non-Calculus based Physics I and II which will be perfect for the younger daughter as she thinks about medical school.

[murielm99]

35. My daughter attended a prestigious conservatory

as an undergrad. She had a trustee's scholarship, and a few other small scholarships, or she would not have been able to go there. She attended another prestigious program for grad school.

It still costs money that has to come from somewhere. By her senior year, we were helping her brother too, and she had to borrow ten thousand dollars just to finish the school year.

Community college does not cost that much here. There is one close to us, and everyone in my family has looked into the costs and taken classes there. No one in my family attended full time. But it does work out to a considerable savings here. And that school does have some scholarships as well as a good financial aid plans.

Two of my children ended up doing better at private colleges. The youngest one got the most help at a state school. Families simply have to shop for the best programs and financial packages. I know what we discovered when we did our homework.

I went back to school myself when I was in my fifties. I looked for a good program that was affordable. I found out later that I might have been able to do better at another school.

I can only speak from our experience.

[Liberal_in_LA]

29. Hope the son gets a student job ASAP. If mom can't come up with $700 or even keep up

payments on the loan, she's not going to be able to help him.

[aikoaiko]

42. Please forgive the ignorance, is it really that difficult to get a credit when you have a steady job

...and haven't declared bankruptcy?

[dflprincess]

43. All that financial "reform" that was passed - but

not a thing done about usury.

There used to be laws about this sort of thing.

[tammywammy]

44. Interesting to note title loans are illegal in her state, West Virginia, she drove to Virginia

to get one.

[hfojvt]

45. wow, it's a tough night here for loan shark victims

let them eat contracts
caveat emptor
laissez faire
personal responsibility

[jcboon]

46. I don't believe some of the stuff I'm reading on this thread

The lady got beaten up by a bully and you personal responsibility people go all Ayn Rand on her.
If she had been raped would you say she shouldn't have dressed like that or walked in that part of town?
Democrats? Really?

[blueamy66]

47. REALLY? You're comparing a sane woman

signing a legal contract to repay a loan with rape?

REALLY???

[WatsonT]

50. She agreed to it

how is that like rape?

[lumberjack_jeff]

52. This story illustrates everything that is wrong with education, not banks.

No savings, so take a 300% apr loan on your car to get your son into a dorm at drama school.

Where to start?