If you’re dealing with financial trouble or bad credit as a result of your dealings with American Web Loan, then rest assured you’re not the only one. AWL has trapped many borrowers in dangerous loan terms that have led to damage to their credit and financial health.
We’ll cover what exactly American Web Loan does, how they go about collecting payments, and what you need to know if you’ve got a loan from them.
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What is American Web Loan?
American Web Loan (AWL) is a lender that specializes in providing short-term consumer loans. The company is based in Stillwater, Oklahoma, and they’ve been in business since 2010. 1
AWL is a tribal lending entity that’s wholly owned by the Otoe-Missouria Tribe of Indians. As such, the company is subject to tribal law. 2 They currently operate in all states except Arkansas, Connecticut, Georgia, New York, Vermont, and Virginia.
You may see American Web Loan on your credit report as an active loan, charge-off, or collection account. If they transferred or sold your debt to a third-party debt collection agency, then American Web Loan collections may appear on your credit report under a different company’s name.
What types of loans does American Web Loan offer?
American Web Loan offers short-term personal loans with extremely high interest rates. For example, borrowers have reported paying over double their loan amount in interest within the first month of repayment.
Loans with interest rates like this are often considered “predatory,” and we recommend avoiding them, even if you’re in a financial bind and need money fast. They just aren’t worth the risk.
Does American Web Loan offer payday loans?
AWL claims they’re not a payday loan provider because their loans have a repayment period of 6, 9, or 12 months (as opposed to the term being fixed to your payday cycle). 3 However, loans from AWL have many of the same risks and disadvantages of payday loans, and their longer repayment terms may make them even more expensive.
Does American Web Loan collect debts?
No, AWL doesn’t collect debts and they’re not considered a debt collector subject to the rules and restrictions set out in the Fair Debt Collection Practices Act (FDCPA). Some misinformed sources claim that American Web Loan is a debt collection agency, but they’re actually a creditor.
American Web Loan may appear on your credit report as an installment loan, and they may contact you to ask for payments you owe them directly. However, there’s no evidence that they collect debts on behalf of any other creditors.
Is American Web Loan a scam?
No, AWL isn’t a scam. They’re a legitimate business that holds a lending license. 4 However, American Web Loan is a short-term loan provider known for charging outrageous interest fees, and many consumers have filed complaints against them stating that they became trapped in debt because they weren’t properly informed about the terms and conditions of their loan. 5
With that said, it’s possible that scammers may contact you claiming to represent American Web Loan and ask you to pay them money. Never send money or provide personal information to anyone asking you to pay a debt until you’ve confirmed you actually owe it. To do so, contact AWL directly using the contact information below.
How to stop American Web Loan from hurting your credit
If you see a derogatory mark on your credit report from American Web Loan or an account that doesn’t belong to you, you should take steps to stop them from hurting your credit.
Begin by disputing the item on your credit report, which you can do by sending a letter to the relevant credit bureau:
You can also try asking American Web Loan to remove negative items from your credit history in one of two ways:
- Pay for delete: Use a pay-for-delete letter template to offer payment in exchange for the removal of negative marks. You can also use pay for delete as part of a debt settlement agreement.
- Goodwill deletion: Use a goodwill letter template to ask AWL to remove negative marks out of kindness. This is less likely to work, but it’s worth a shot.
How to deal with American Web Loan fraud and identity theft
If American Web Loan has sent you notifications or asked you to make payments on a loan you never took out, it’s crucial that you take action immediately to protect your credit, finances, and identity.
Start by taking these steps:
- File a police report.
- File an identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov.
- Contact Experian, Equifax, or TransUnion (the three main credit bureaus) to have a fraud alert placed on your credit reports. You only need to contact one of these companies, and they’ll notify the other two.
- Notify American Web Loan that your identity was stolen and that you didn’t take out a loan with them. They may ask you to provide supporting documentation, like a copy of your identity theft report and police report.
Identity theft can be scary, especially when someone has taken out a large, high-interest loan from a company like American Web Loan and you see the balance increasing by extortionate amounts. But don’t worry, and don’t feel pressured into paying. You’ll be safe as long as you follow the steps outlined above.
