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The lending scam

watchingfromafar

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I got a load to consolidate my debts.

I had the account set up on autopay and did not look at the account thinking I would pay it off in time.

A year later I checked the loan balance and found that the principle I owed had doubled.

It turns out that the minimum payment did not even cover the interest being charged for that month.

I think this is fraudulent lending.

Congress should make it unlawful for a lender to create a payment plan that does not even cover the interest charged for that payment period.

what do you think-?
:)-
 

JackOfNoTrades

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Unless you are getting your loan from a loan shark, then even the most threadbare company is required to provide you with the terms of the loan. Which spell out your principal, interest rate, number of years, penalties, and any other fine print.
So the question is, did you read it before you signed the papers? For example, companies offer 0% interest for X number of months. As long as you pay the debt off by the required time, your interest rate stays 0%. Go one day over the life of that
debt with a balance, and you owe ALL the interest from the life of the loan.

This is why you only go to local or approved lenders (and not any of the debt relief companies you see on TV..unless your credit is completely shot).
 
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watchingfromafar

watchingfromafar

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This is why you only go to local or approved lenders (and not any of the debt relief companies you see on TV..unless your credit is completely shot).
I assumed the loan and payback period would eventually pay off the loan because I got the loan through my Wells Fargo account.

BTW: my credit score was high, at the time.
I just checked my credit score---- it is 713
:)-
 
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JackOfNoTrades

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I assumed the loan and payback period would eventually pay off the loan because I got the loan through my Wells Fargo account.

BTW: my credit score was high, at the time.
:)-
Find out if there any possibilities (without penalty) for an early payoff if you can afford it. Try to put enough money into the monthly payment to cover the monthly interest and maybe some principal (if you can afford it).
Depends on the terms of the loan. You can recover your credit score. It may take a while, but it's possible.
 

Toddsterpatriot

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I got a load to consolidate my debts.

I had the account set up on autopay and did not look at the account thinking I would pay it off in time.

A year later I checked the loan balance and found that the principle I owed had doubled.

It turns out that the minimum payment did not even cover the interest being charged for that month.

I think this is fraudulent lending.

Congress should make it unlawful for a lender to create a payment plan that does not even cover the interest charged for that payment period.

what do you think-?
:)-

A year later I checked the loan balance and found that the principle[sic] I owed had doubled.

You didn't check your loan balance for a year? You stupid.

BTW: my credit score was high, at the time.

Your interest caused your balance to double in a year. You lyin'.
 
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watchingfromafar

watchingfromafar

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Find out if there any possibilities (without penalty) for an early payoff if you can afford it. Try to put enough money into the monthly payment to cover the monthly interest and maybe some principal (if you can afford it).
Depends on the terms of the loan. You can recover your credit score. It may take a while, but it's possible.
Thank you for your advice.

I will do what you suggested

Again thanks

:)-
 

Toddsterpatriot

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Agree, I ass-um-ed I could rely on Wells Fargo to treat me fairly

No, I am not
:)-

Read your paperwork. What rate did they give you? Post it.

No, I am not

If they charged you a rate higher than the credit cards etc you consolidated, your credit score sucks.

If they charged you over 100%, it must REALLY suck. Or you made it up.
 

andaronjim

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I got a load to consolidate my debts.

I had the account set up on autopay and did not look at the account thinking I would pay it off in time.

A year later I checked the loan balance and found that the principle I owed had doubled.

It turns out that the minimum payment did not even cover the interest being charged for that month.

I think this is fraudulent lending.

Congress should make it unlawful for a lender to create a payment plan that does not even cover the interest charged for that payment period.

what do you think-?
:)-
Unless you check the loan interest for the year, you can easily be ripped off, because at 20% which a lot of consolidated loan sharks offer, many people dont understand how it works. Do you own a house? If so, get with your mortgage company see how much principle is in it and see if your mortgage can consolidate all your debt in one loan, at a much lower interest rate, for that is the best way to pay off all your debt. Just make sure you pay 1 extra month of the mortgage so you pay it down faster...
 

andaronjim

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I assumed the loan and payback period would eventually pay off the loan because I got the loan through my Wells Fargo account.

BTW: my credit score was high, at the time.
I just checked my credit score---- it is 713
:)-
Today, i use my credit cards as cash, as every year i get cash back from the use. But i always purchase what i need and can pay off at the end of the month, thus not carrying debt into the next month(where you pay fees and interest) but get a good credit rating as always paying on time....
 

andaronjim

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