The Truth About Stated Income Loans:
There are plenty of companies that out there that do stated income personal loans. Also, many credit cards take people’s words at whatever income they throw on the application. The only thing they’ll do is pull your credit report. If your credit is good enough according to each company’s policy, you will get the loan or credit card. Side loans are only offered with mortgages or those who have mortgages with the company. It is a high 18%, but lower than the almost 30% loans for people who are not homeowners.
Just about any business that involves sales is “high pressure.” Some people couldn’t get loans anywhere else and sometimes these loans could’ve helped them if they were responsible and didn’t rack up all kinds of debt all over again.
The customer service with the company is pretty poor. It was frustrating to employees because we couldn’t even help the customers. People have to be responsible for contracts they enter into and actually read the paperwork and when it comes to mortgages…have a lawyer present. If you can afford the few hundred dollars a lawyer might charge for going to a mortgage signing with you, then you can’t afford a mortgage. The company wasn’t good at processing payments through the processing center, but if payments were mailed to the branches, they got posted right away.
I’m not sure about their credit card end of the business, but every credit card agreement I’ve “read” tells you if you are late…your interest rate is going to jump up besides getting the late fees. This practice is nothing new and not exclusive to this company.
Whenever you get a notice from your credit card company about a change in terms…READ IT. They give you the option of not accepting the terms and closing your account when the balance is paid at your current rate. Most people throw this stuff away without reading it. You also have the option of opting out of the arbritation agreement. There are a lot of customers that we have helped and they appreciate the chance they got to repair their credit rating so one day they could go to a bank.
I agree some people shouldn’t have been given loans, but those same people also know they can’t afford the loan. Defaults on loans is what drives these high rates on personal loans for people with not so great credit.
What I will say is that the company is treating the remainder of their employees pretty bad right now. Most have been terminated with a months pay plus severance. The rest are required to report to work and wait until they give instructions on closing down. Those employees will get a severance, but will not get another months free payroll like most of the employees did. They get their full paychecks while looking for work and we can’t even apply for work because they can’t even tell us an exact date of when we’ll be released.
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