Posted by Mike Glover on July 21, 2005, 10:24 pm
Ughhhhhhh, I feel I'm being scammed by a large bank. I'm 52, and have had
many loans, I've always paid off my loans early, and didn't like the tone of
being threatened I might be turned into the collection agency. My FICO
score is something like 740, so I'm no deadbeat. Guess I hold too many
CC's, otherwise my score would be higher.
I got a student loan back in Jan. of this year. The first payment was due
April 1, 2005. So, at the end of Feb, I tore the payment stub for April
out, and mailed in payment plus $15 extra for principle only. In March, I
mailed Aprils payment with payment stub for May, plus an extra $15 for
principle only. In April I tore Junes payment out, plus an extra $15. In
May, I tore out Julys payment stub plus an extra $15. In June, I didn't
mail any payment, and July was already paid for.
Today, I get a letter from the bank telling me I'm overdue and behind
because they didn't receive Julys payment. What the heck, I paid it back on
May 27th. I call them and this is the response I get. I owe them for July
($84 + late charge). They said the payment I made back in Feb, they applied
it towards principle only. I asked them why would they apply towards
principle, when in fact I mailed them Aprils coupon out of the book. They
told me I'm not allowed to pay in advance more than one month.
Ok, now before I fire off a copy of my loan paper along with my cancelled
checks to the States Attorney General, I would like to know what the general
consensus for something like this is.
Here's some language in my papers:
Terms of Repayment: I will make consecutive monthly payments of principal
and interest on the due dates shown on my monthly statement or in my coupon
book until all disbursements are made and I have paid all the principal and
interest and other charges I may owe under the terms of this Promissory
Note.
Right to Prepay: I have the right to prepay all or any part of the
outstanding Total Loan Amount of this Promissory Note at any time without
penalty. Prepayment of less than all of the outstanding balance of this
Promissory Note will not reduce the amount of my monthly payments or
postpone the due date of monthly payments, but will reduce the number of
payments I must make. In any event, I will not be entitled to a refund of
any part of the interest or finance charge already paid.
Posted by Mike Glover on July 21, 2005, 10:36 pm
"Mike Glover" wrote
> My FICO
> score is something like 740, so I'm no deadbeat.
I jsut found on my loan papers, my score is 791, if that makes any
difference.
Posted by Bob Ward on July 21, 2005, 11:08 pm
wrote:
>"Mike Glover" wrote
>> My FICO
>> score is something like 740, so I'm no deadbeat.
>I jsut found on my loan papers, my score is 791, if that makes any
>difference.
Oh, yeah - that changes the prepayment question totally!
Idiot!
Posted by v on July 25, 2005, 6:21 pm
On Fri, 22 Jul 2005 02:36:45 GMT, someone wrote:
>I jsut found on my loan papers, my score is 791, if that makes any
>difference.
Uhhh, how would that change the terms of your contract? Does it say
"But people whose scores are above 790 can do as they like"?
Irrelevant. Probably an attempted bragging too.
Reply to NG only - this e.mail address goes to a kill file.
Posted by Bob Ward on July 21, 2005, 11:06 pm
wrote:
>Ughhhhhhh, I feel I'm being scammed by a large bank. I'm 52, and have had
>many loans, I've always paid off my loans early, and didn't like the tone of
>being threatened I might be turned into the collection agency. My FICO
>score is something like 740, so I'm no deadbeat. Guess I hold too many
>CC's, otherwise my score would be higher.
>I got a student loan back in Jan. of this year. The first payment was due
>April 1, 2005. So, at the end of Feb, I tore the payment stub for April
>out, and mailed in payment plus $15 extra for principle only. In March, I
>mailed Aprils payment with payment stub for May, plus an extra $15 for
>principle only. In April I tore Junes payment out, plus an extra $15. In
>May, I tore out Julys payment stub plus an extra $15. In June, I didn't
>mail any payment, and July was already paid for.
>Today, I get a letter from the bank telling me I'm overdue and behind
>because they didn't receive Julys payment. What the heck, I paid it back on
>May 27th. I call them and this is the response I get. I owe them for July
>($84 + late charge). They said the payment I made back in Feb, they applied
>it towards principle only. I asked them why would they apply towards
>principle, when in fact I mailed them Aprils coupon out of the book. They
>told me I'm not allowed to pay in advance more than one month.
>Ok, now before I fire off a copy of my loan paper along with my cancelled
>checks to the States Attorney General, I would like to know what the general
>consensus for something like this is.
>Here's some language in my papers:
>Terms of Repayment: I will make consecutive monthly payments of principal
>and interest on the due dates shown on my monthly statement or in my coupon
>book until all disbursements are made and I have paid all the principal and
>interest and other charges I may owe under the terms of this Promissory
>Note.
>Right to Prepay: I have the right to prepay all or any part of the
>outstanding Total Loan Amount of this Promissory Note at any time without
>penalty. Prepayment of less than all of the outstanding balance of this
>Promissory Note will not reduce the amount of my monthly payments or
>postpone the due date of monthly payments, but will reduce the number of
>payments I must make. In any event, I will not be entitled to a refund of
>any part of the interest or finance charge already paid.
The terms you quoted spell it out quite clearly... "Prepayment of less
than all of the outstanding balance of this Promissory Note will not
reduce the amount of my monthly payments or postpone the due date of
monthly payments, but will reduce the number of payments I must make.
In any event, I will not be entitled to a refund of any part of the
interest or finance charge already paid."
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> score is something like 740, so I'm no deadbeat.