I wanted 15K. She said I could have that easily. Maybe I'd like to take a little extra for myself she asked. I said no. Maybe I'd like to add those other 3 debts "just to get them out of the way". (I’m guessing they make a commission on what you take?) I said no, just the 15K. And then she quoted me 19.98%. I was surprised. When I told her I didn't want to pay 20% and she said I could get less than that, I expected more than .02% less. I told her I wasn't interested. "Well you know" she said "Your credit card debt takes a lot longer to go down than a loan". Yes, that's true and that's why I was there but I had hoped for a much better rate. In any case my bank had refused me so my choice was pay the credit cards 20% for who knew how long or pay Citi-Financial for a fixed 5 years. After much beating myself up, I decided to go for the loan. "Wonderful" she said. "Now, since you are not a customer yet, I will have to get you to sign for a 10K loan at the non-secured 32.98% just for 48 hours to establish you as a customer and then you will come back and sign for 15.5K at 19.98%" I said "Huh??" Yes, I was told that in order for them to give me the 20% rate I would have to first sign for the 33% for 48 hours. It's standard apparently. Now, I'm thinking I'm not going to sign anything at 33%. She told me that she understood my reluctance but assured me that I was already approved to get the 20% rate and would only pay the interest for 2 days at the 33% rate. I asked for a paper stating such and she provided me with one. IF the notary, that apparently is necessary for a 20% secured loan, found nothing amiss, I'd have no problems. I knew that he wouldn't find anything wrong because I had been forthcoming in all my information but I can tell you, those were the longest 48 hours I've spent in a long time. Oh...and there are fees involved. I made the mistake of not asking for specifics. When I left on day 1 I was given $10K in various cheques to pay off 2 of my debts which I did on my way home that night.
Long story a little longer, I got the 20% rate but my loan for 15.5K will cost me 16.5K (@20%). $26 interest for the 48 hours, $220 appraisal fee and $750 for the notary who showed up and for about 10 minutes ran through the contract at a speed at which I couldn't understand a word he was saying, asked if I already had a will and power of attorney and just as quickly was gone!
I left there feeling taken and *** and quite frankly dirty.
There was a sign in the woman's office that said 'Consolidate your debts for one easy payment and lower interest rates'. Lower than what? I don't know.
How many people don't make the cut from 33 to 20 %, I wonder? Is it even true that you need to establish a "relationship" before you can get the secured rate?
What's done is done and now at least my payments are consolidated and lower but at 20% per year for 5 years, I will essentially be paying double by the time this is all over.
When I got home I expected to find the latest loan document in the envelope they gave me. It wasn't there, just, at least, that cancelled loan at 33%. I had to call for one. It's being officially notarized so I will have to wait to get it in the mail. They didn't even have a photo copy of the document I signed.
Review about: Citifinancial Loan.