3 On Your Side

Valley woman gets loan with 209 percent interest rate

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A Valley woman was shocked when her $2,000 loan turned out to have a 209 percent interest rate. (Source: 3TV) A Valley woman was shocked when her $2,000 loan turned out to have a 209 percent interest rate. (Source: 3TV)
Indian tribes like the one that owns Q Credit do have the right to charge whatever interest rate they like. (Source: 3TV) Indian tribes like the one that owns Q Credit do have the right to charge whatever interest rate they like. (Source: 3TV)
Q Credit offers a calculator on their website and clearly states their interest rate is more than 209 percent.  (Source: 3TV) Q Credit offers a calculator on their website and clearly states their interest rate is more than 209 percent. (Source: 3TV)
(3 ON YOUR SIDE) -

The loan Joanne Halsey took out was for $2,000, but with her interest rate, she will have paid back $6,000 over the course of two years, putting her even deeper into a financial hole.

"I'm scared, I'm scared we're going to lose our home," Joanne said.

Joanne and her husband Gary are in a tough spot.

"He has no health insurance," Joanne said.

Gary has numerous health issues, and Joanne says they're doing everything they can to get him better.

"I know I'm going to lose him," Joanne said.

Joanne says they've tried, but her husband has been turned down several times for health insurance. And between doctor’s visits, hospital stays, medications and medical bills, Joanne says their bills have gotten out of control.

"We're $120,000 in medical debt," Joanne said.  

With no insurance and desperate for cash, Joanne went online and took out a $2,000 loan with a company called Q Credit.

"I just filled out the application. I had the loan the next day," Joanne said.  

Joanne says the $2,000 was automatically deposited into her bank account and Q Credit started its payback schedule by taking bi-weekly payments out of her bank account.

"Here it shows $2,000 loan, last payment $168.51," Joanne said.  

Joanne realized that if she paid $168 twice a month for two years, she will have paid back Q Credit around $8,000 all for a $2,000 loan.

Q Credit offers a calculator on their website and clearly states their interest rate is more than 209 percent. However, Joanne never saw or used the calculator. But how can a company charge such an exorbitant amount of interest?

3 On Your Side got involved and found out Q Credit is owned by an Indian Tribe called the Rosebud Sioux Tribe, based out of South Dakota.

According to their website, "Loans from Q Credit are governed by the laws of the Rosebud Sioux Tribe, not the laws of your resident state," which means they can charge whatever interest rate they want.

Joanne didn't notice that disclosure when she took out that loan for $2,000.

"You see it's dark and I didn't read that until like that the other day," Joanne said.

Joanne says she feels helpless. She took out a loan to help her and her husband and now she feels she's dug them into a deeper financial hole.

"It's been an absolute nightmare," Joanne said.

 After 3 On Your Side got involved, we got a hold of Q Credit and explained Joanne's situation. They sent us an email back, acknowledging Joanne's "..extraordinary circumstances." As a result, Joanne says Q Credit has offered her a one-time settlement of $2,038, meaning that's all she'll have to pay back.

Keep in mind that around $6,000 was wiped off her agreement. Joanne says she appreciates the offer and says she'll be more careful from now on.

"I pride myself on being very intelligent but sometimes when you don't think, and you just act. I just never dreamed anything like this would ever happen," Joanne said.

Thanks to Q Credit for getting involved and helping out. By the way, Indian tribes like the one that owns Q Credit do have the right to charge whatever interest rate they like.

[Update: Stranger pays off 209 percent loan]

Copyright 2017 KTVK (KPHO Broadcasting Corporation). All rights reserved.


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Gary HarperGary Harper is the senior consumer and investigative reporter for 3 On Your Side at KTVK-TV.

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Gary Harper
3 On Your Side

With more than 20 years of television experience, Gary has established himself as a leader in the industry when it comes to assisting viewers and resolving their consumer-related issues. His passion and enthusiasm have helped him earn an Emmy for Best Consumer Reporter from the National Academy of Television Arts and Sciences. He’s also garnered several Emmy nominations

He has negotiated resolutions with companies of all sizes, including some of the biggest corporations in the nation.

Gary has successfully recouped more than $1 million for viewers around the state, making 3 On Your Side one of the most popular segments on KTVK and the station's Web site.

He's best known for investigating and confronting unscrupulous contractors. In fact, many of his news reports have led to police investigations and jail time for those who were caught. Viewers, as well as the companies and people he investigates, regard him as consistently being thorough and fair.

Gary has been with KTVK-TV since 1997. Prior to his arrival in Phoenix, he worked for WZZM-TV in Grand Rapids, Michigan, where he was as an anchor and reporter.

Gary is from Chicago, but launched his television career in Lubbock, Texas, after earning a broadcast journalism degree from Texas Tech University. Following his graduation, he was quickly hired by KLBK-TV in Lubbock, where he enterprised and broke numerous exclusive reports. His aggressive reporting in Texas helped garner him Best Reporter by the Associated Press.

Gary has been married since 1994 and is the proud father of two sons. When he's not helping viewers, Gary is busy catching up on his favorite college and professional football teams as well as cheering on his beloved Texas Tech Red Raiders.

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