WithU Loans Review: A Detailed Investigation Of The Lender
Let’s begin with the fact that WithU Loans is an arm of the Otoe-Missouria Tribe of Indians. This means that loans are issued based on tribal laws, which disregard federal or local laws.
The official owner is W6LS, Inc., allegedly licensed by The Otoe-Missouria Consumer Finance Services Regulatory Commission. According to their website, those who have complaints regarding regulated entities can file them at omfs[email protected] or send mail to 8151 Hwy 177, Red Rock, OK 74651.
Knowing that tribal loans often look like payday loans, with exceptionally high APRs, we wanted to check is WithU Loans legit. Keep on reading to find out.
|WithU Loans Website||Withuloans.com|
|Loan Terms||6, 9, 12 months|
|Immigration Status Considered||Yes|
|Employment Statuses Considered||Yes|
|Credit Score Range||Any score|
|Intended Use||Personal loans|
|Joint Loan Applications Accepted||No|
|Verification Documents Required||Yes|
|Minimum Credit Score||No minimum|
|Loan Purpose||Personal use|
|Supported Income Types||N/A|
|Time to Receive Loan Money||1 business day for wire transfer and direct deposit7-10 business days for a check|
|Other Requirements||18 years old, residing in a state eligible for the service|
Is WithU Loans Legit or Scam? Regulation and Security
As mentioned, WithU Loanss and their owner, W6LS, Inc., belong under tribal laws. The Otoe-Missouria Tribe of Indians is a federally recognized tribe exempted from federal and local laws. They have their own financial and other regulations, courts, and rules.
What’s concerning is the fact that the Terms and Conditions clearly indicate that by signing a loan agreement, you give up on your right to go to court and resolve the dispute in front of the judge and jury. This is quite suspicious, meaning that you cannot take the company to court in case of issues. Or you can, but the one they chose – Southern Plains Court of Indian Offenses.
With this in mind, let’s continue our WithU Loans review and see what else is suspicious.
WithU Loans Pros & Cons
Like any loan and lender, WithU Loans has its own set of pros and cons. We’ll list them for you to make it easier to decide.
- The loan is approved within one business day
- The loan amount goes up to $2,500
- Those with bad credit or no credit history can also apply
- No collateral is required
- Signup is relatively easy
- The company belongs under tribal laws
- Federal laws don’t apply
- T&C force waiving the right to go to court
- The site has a low trust score and signs of malware and spam
- There are a lot of bad customer reviews
- Basic terms, such as APR, are not disclosed before registration
Basically, you should summarize – are you that desperate that you need quick cash and you will risk it all with a tribal lender and unknown loan terms, or will you try and get a loan from a more trusted source?
What fees does WithU Loans charge?
First and foremost, WithU Loans is relatively obscure when it comes to fees. Everything is said to be agreed upon signing a loan agreement. This is not good for borrowers, as they need to provide their personal details and request a contract just to see the terms.
Furthermore, the example shown on the website shows an APR of 597.35%, which is exceptionally high. The average US APR for personal loans with traditional lenders, such as banks, is around 35% for those with the lowest credit score. In fact, even payday loans, a well-known scam, have an average APR of 391%.
Does WithU Loans Charge an Origination Fee?
The origination fee is a fee covering the costs of processing the loan. It’s an administrative fee for all the work needed before the borrower is approved or denied. However, WithU Loans has never mentioned this fee, so we’re unsure if they charge any.
Does WithU Loans Charge a Late Fee?
A late fee is a fee that should be paid if you’re late with the repayment of any loan installment. It’s charged for each installment separately. In an example we’re given, WithU Loans states to charge a $20 late fee.
We cannot be sure whether this is the maximum amount or just an average. Once again, customers must submit their loan request before knowing all the terms.
Does WithU Loans Charge Prepayment Fees?
A prepayment fee is charged in case the borrower repays the loan before the loan term ends. Since the lender loses all interest due to this time, it has the right to charge a prepayment fee. However, WithU Loans didn’t bother much to disclose whether or not it’s possible to repay the loan earlier and what the terms are.
Is WithU Loans Reputable?
If you check WithU Loans reviews with BBB and other consumer protection sites, you will see that the word reputable doesn’t apply here. Namely, customers say they were prompted to pay weekly installments of almost 50% of the borrowed sum for the next six months. Additionally, some of them were pre-approved, only to find out they would not get the money.
Some comments indicate that customers’ funds were only used for interest and never towards the principle of the loan, which is why the amount was never repaid in total. Even after the life of a loan, charges keep coming.
Finally, the Washington State Department of Financial Institutions has received complaints regarding WithU Loans and has classified the lender as unlicensed.
WithU Loans Summary
Let’s briefly summarize everything we know.
- WithU Loans belongs to W6LS, Inc., a tribal-regulated company.
- The site has numerous negative reviews and a low trust score.
- Basic terms such as APR and other fees are not specifically listed.
- The T&C force customers to give up their right to go to court.
With everything being said, we believe that applying for a traditional loan with a bank or a credit union is a way better choice. If you have a bad credit score or no score at all, turning to friends and family is a better choice than being involved with a scam such as WithU Loans.