Sketchy Financial Product of the Day: OctoLoan (Endorsed by Octomom!!!)
Sigh. The Internet has no shortage of short-term loan companies eager to bleed people dry with astronomical interest rates, but this new website really takes the cake with its rather comical ‘celebrity’ endorsement: Nadya Suleman, aka Octomom, hawking OctoLoan.
Some background here: Nadya Suleman is the California woman (in)famous for giving birth to octuplets (that would be eight babies) in 2009 via in vitro fertilization. She already had six kids and was receiving public assistance, and it seemed like half the country (and every media outlet) freaked out about the unemployed mother and her brood of 14 kids. Fast forward to 2012, and Ms. Suleman has gone to some creative lengths to support herself and her family. In March, she posed semi-nude for a UK magazine (no I will not provide a link to the pictures!). In April, she filed an emergency “bare bones” Chapter 7 bankruptcy petition to stave off foreclosure, but the petition was dismissed when she failed to file the rest of her paperwork. Then in May she shot a one-woman porn video (Google it if you must, but seriously, you can’t unsee that).
Now, in June, she’s endorsing a company called OctoLoan. The tagline? “When you’re financially alone — OctoLoan.” Groan. On Twitter (@octoloan), this outfit bills itself as a “trusted option compared to credit card late fees and overdraft charges.” But c’mon, OctoLoan isn’t even a lender.
The operator of this website is not a lender nor broker, agent or representative to lenders. We do not make cash advances or credit decisions. Advertising on or though this website does not constitute an offer or solicitation to lend money to you.
So who are these people, and how can you trust them with your bank account information? You can’t. Don’t trust the Internet, people, and don’t trust an endorsement from Octomom. Actually, don’t trust any celebrity’s endorsement when it comes to your money. I’m talking to you, Montel Williams.
Like the MoneyMutual.com site that Montel promotes, OctoLoan promises some astronomical interest rates:
“A representative annual percentage rate (APR) example is as follows, rates vary by state, applicant information and lenders: A loan of $100.00 for 14 days could cost $25.00 in fees. The total amount to payback could be $125.00 with an APR of 651.79%.”
Gee, sounds like a bargain.
For more information about short-term loans, including interest rate caps and licensing requirements, visit the Minnesota Department of Commerce or Minnesota Attorney General’s Office. If you’re in dire straits financially, get thee to a non-profit financial counselor or consumer bankruptcy attorney. Consultations are free, confidential and non-judgmental.