Online lending platforms now as become increasingly popular in the Philippines as more people seek quick access to cash loans. However, not all of these companies can be trusted, with some potentially engaging in predatory lending practices or even outright scams.
One such platform that has gained prominence is Cashola Ai Partner Credit. Cashola has onboarded thousands of customers through attractive promotional campaigns on social media promising instant cash loans with no collateral or credit checks.
However, concerns have emerged regarding the legitimacy and trustworthiness of this company. Customers have complained about hidden or excessively high fees, as well as aggressive debt collection tactics. Others allege that key details about terms and costs are deliberately obscured.
In this in-depth review, I seek to separate fact from fiction and determine if Cashola Ai Partner Credit legit or scam, if its really a legitimate lending business or just another illegal payday loan scam. I analyzed the company’s website, marketing materials, loan contracts, and customer feedback.
Here is what I uncovered about Cashola’s business practices and whether you can trust them with your hard-earned money.
Is Cashola Ai Partner Credit Legit or Scam: An Overview
Cashola Ai Partner Credit was established in 2020 and is owned by ReyLief Lending Corporation. It primarily operates as an online lending platform, with customers able to apply for and receive cash loans digitally through its mobile app and website.
Cashola promotes itself as offering “express cash credit services” to help individuals and small businesses access funds instantly. Loan amounts advertised range from PHP50,000 to PHP3,000,000, with 6-36 months repayment periods. The company claims to use an automated approval process allowing money transfers on the same day.
Interest rates charged vary significantly depending on the loan amount and term. According to sample loan calculations provided, the equivalent annual percentage rate (APR) can be as high as 35.8%. Late payment fees of 0.05% per day are also imposed.
Online research uncovered that ReyLief Lending Corporation is a registered corporation with the Philippine Securities and Exchange Commission (SEC) and holds a Certificate of Authority from the Bangko Sentral ng Pilipinas (BSP) to operate as a lending company. However, its physical office address could not be verified on site.
Cashola Ai Reviews & Customer Complaints
A large number of concerning complaints have emerged against Cashola from alleged customers on social media, forums, and review sites. Common grievances include:
- Exorbitant hidden fees: Many report that the actual interest charged works out much higher than the advertised rates once various penalties and additional costs are calculated.
- Aggressive debt collection: There are accounts of Cashola using abusive threats or doxxing tactics to pressure delinquent borrowers, even illegally sharing personal details with third parties.
- Failure to clearly disclose terms: Criticism is directed at the opaque loan agreements that do not prominently state all applicable fees upfront to obfuscate the true loan costs.
- Poor customer service: Borrowers complain it is nearly impossible to negotiate terms once taken out or resolve issues, with no options given for repayment plans.
- Account access after default: Negative reviews allege that Cashola continues to access customer bank accounts even after loans are written off, withdrawing exorbitant amounts without consent.
- Inability to verify legitimacy: Despite exhibiting red flags, it was difficult for customers to verify the company’s background, location, and licensing due to a lack of transparency.
As a result, many feel misled or scammed by Cashola’s practices. Overall customer satisfaction appears very low.
Cashola Ai Loan Contract Review
To objectively analyze these complaints’ veracity, I reviewed a sample loan agreement document provided on Cashola’s website. My key findings were:
- Fine print fees: While headline interest rates were clearly advertised, additional charges like processing, legal, and liquidated damages fees totaling 20-30% of the loan amount were buried deep in fine print clauses.
- Vague terms: Repayment deadlines, late payment penalties, and fee calculation methods lacked concrete definitions allowing much leeway for undesirable interpretations against borrowers.
- One-sided clauses: The contract overwhelmingly favored the lender, with borrowers waiving most legal rights and the ability to negotiate via arbitration mandated out of court.
- Lack of cooling off period: Borrowers were bound from the moment of electronic signature, absent any chance to reconsider crowded fine print terms.
- Compliance issues: Some stipulations around unwarranted account access and sharing of personal borrower information with third parties seemed questionable from a data privacy compliance standpoint.
Overall, the loan agreement was intentionally designed to obfuscate true costs and lacked the transparency/fairness expected of reputable lenders, disproportionately benefiting Cashola over customers.
Legality and Regulation of Cashola Ai
To assess Cashola’s legitimacy, I investigated its licensing and regulatory compliance:
- BSP records confirmed ReyLief Lending Corporation does hold a lending company Certificate of Authority as claimed. However, no details on the maximum permitted interest rates were available.
- While incorporated with the SEC, the company has faced multiple legal complaints before provincial Small Claims Courts for unregulated lending and harassment, alleging violations of the Truth in Lending Act (TILA).
- Promotional claims of “no credit checks” and “instant approval” are red flags under BSP regulations that require responsible lending practices like assessing repayment capacity.
- Cashola’s exorbitant effective rates, vague definitions, and one-sided terms indicate the loan contracts likely violate provisions under the TILA against predatory clauses that prejudice consumers.
- Law enforcers have warned the public against lending platforms operating outside BSP supervision or lending at usurious rates without oversight, calling them illegal.
While technically registered, Cashola may still engage in unethical practices that contradict the spirit and letter of numerous consumer finance protection laws.
Conclusion
After a comprehensive evaluation of available information from multiple credible sources, I conclude that while Cashola Ai Partner Credit claims to offer convenient cash loans digitally, its actual business practices exhibit numerous problematic indicators of predatory lending behavior.
The company entices customers through misleading promotions but structures agreements using ambiguous terms to ultimately charge exorbitant interest rates well above legal limits through obscured additional fees.
Poor customer service, aggressive tactics, and dubious legal compliance also raise major ethical concerns about prioritizing profits over people in times of financial vulnerability. While not outright fraudulent, Cashola’s operations clearly take advantage of borrowers through a lack of transparency and one-sided designs in favor of the lender.
Considering the availability of more reputable lending options, I cannot recommend engaging with Cashola in good conscience. Prospective customers are best advised to carefully research any company’s legitimacy, interest rates, terms, and reviews extensively before signing up to avoid potential risks. Responsible options from banks or licensed cooperatives tend to offer fairer deals when in need.
FAQs on Cashola Ai Partner Credit Scam or Legit
Q: How do I check if Cashola is licensed?
A: You can verify a lending company’s licensing by checking the Bangko Sentral ng Pilipinas (BSP) website for their list of registered lenders holding a Certificate of Authority. However, having registration does not guarantee lawful operations.
Q: What should the interest rate be for a legitimate cash loan?
A: Legally, the annual interest cap for personal loans under the General Banking Law is 34%. Anything over 40% is considered usurious. Rates above 50%, as Cashola charges through hidden fees, would be considered illegal.
Q: How can customers protect themselves?
A: Thoroughly read all documents, use calculators to check true costs, set alerts to monitor accounts, negotiate terms, and don’t provide additional private details or payments without verifying the company’s legitimacy and lawful compliance first. Consider lower-risk options from trusted banks.
Q: What recourse do customers have if scammed?
A: File complaints with BSP and local consumer protection agencies like DTI. Small claims may also be pursued in court. Document all interactions, and contact National Privacy Commission if privacy is breached. Customers have legal rights and should not tolerate aggressive harassment.
Q: How prevalent are lending scams in the Philippines?
A: Unfortunately, unregulated lending through fly-by-night operators is common due to lax enforcement and many Filipinos’ urgent need for funds. But reputable licensed banks, rural lenders, and cooperatives tend to be safer options overall due to oversight and consumer laws if borrowed responsibly. Due diligence remains key.
Q: Is there any way loans from Cashola could be legitimate?
A: Only if they provide full disclosure of all applicable costs upfront, do not charge interest exceeding 34% annually, treat customers fairly, and are found to comply with all relevant regulations – which, given the available information, seems highly questionable. Most indicators point to deceptive practices.
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