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yehong

Is there alternative to Prestige Finance?

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I've read so many negative reviews and horror stories about them after I googled them up recently. Is there a better alternative to them for people who are in existing bankruptcy?

 

I have heard in reviews that they charge unclaimed interest if a vehicle is refinanced or sold or traded half way from the original term duration? Is it legal?

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If they use the "rule of 78s" to calculate interest it is legal as far as I know.  But I do not know personally what method they use, because I always turned them down as one of my lenders.

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Read the contract to see if there is a prepayment penalty.

 

 

You won’t likely get a prime lender during BK. And I would bet most of the complaints are from people who got behind on their payments.

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11 minutes ago, tiggerlgh said:

Read the contract to see if there is a prepayment penalty.

 

 

You won’t likely get a prime lender during BK. And I would bet most of the complaints are from people who got behind on their payments.

Sample the first 10 or 20 here.  That's the theme.

 

https://www.consumeraffairs.com/finance/prestige_finiancial_ut.html

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So I did sampling and except for one review, all were negative.  I will review the contract and get back but I remember was told by finance manager of no pre payment penalty. 

So there are no other lenders that offer loans to people who are in bankruptcy and also have good customer service?

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So I did sampling and except for one review, all were negative.  I will review the contract and get back but I remember was told by finance manager of no pre payment penalty. 
So there are no other lenders that offer loans to people who are in bankruptcy and also have good customer service?

We are not saying they are a good company at all. But what I was pointing out was most complaints are from people behind on their payments. I.e. “How dare they charge me fees or call me because I am late, etc.” You will probably have a better experience if you keep it current. Plus you or you friend never want t be late post BK.

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On 3/31/2019 at 2:24 AM, yehong said:

So I did sampling and except for one review, all were negative.  I will review the contract and get back but I remember was told by finance manager of no pre payment penalty. 

So there are no other lenders that offer loans to people who are in bankruptcy and also have good customer service?

There are plenty of lenders out there, but the question is going to be whether you are the one doing the leg work or whether you are relying on the dealership to arrange financing. 

 

NEVER make a decision based upon an oral 'assurance' from finance people.  If it is NOT in the contract you signed (and which you had an opportunity to read prior to signing), then it doesn't matter WHAT the finance manager told you.  They are trying to get you out the door and off their lot.  They will promise you the sun and the moon.  But if you don't read the contract you are entering into, that is on you, not them. 

 

Someone who files BK is, by nature, an elevated risk and a prime candidate for less-than-prime lending.  However, this is where your small local lender that you SHOULD be maintaining a relationship with comes into play...you SHOULD have taken steps to work on financing beforehand.  Failure to do so leaves you at the risk of a poor deal, which is precisely what it seems happened here. 

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Posted (edited)

After reviewing the contract, I see following :

 

Quote

Prepayment: If you pay early, you will not have to pay a penalty. 

Does that mean if the loan is paid off early or if car is sold half way or if it's refinanced, there won't be any "unclaimed interest" for the remainder of the payments that the lender would require to pay?

 

Edited by yehong

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And I am not understanding this clause:

 

Quote

HOW LATE OR EARLY PAYMENTS CHANGE WHAT YOU MUST PAY. ..... If you do not make timely all payments in at least the correct amount, you will have to pay more Finance Charge....

 

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2 hours ago, yehong said:

And I am not understanding this clause:

 

 

That means if you pay late or make partial payments you will be charged additional interest.

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3 hours ago, MarvBear said:

That means if you pay late or make partial payments you will be charged additional interest.

What I meant to say was say if a payment arrives late due to any reason, will the lender charge additional interest on that payment only and for the days it was late Or the total balance would go up? And will they prorate rate monthly interest and charge for the days it was late or how will they calculate interest?

Is this a common clause? Because I've never seen it with mortgages or with my previous auto loans or auto leases as far as I remember. They all usually charged late fees. 

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There will likely be late fees as well. Most auto loans are daily interest therefore you pay late you owe more interest plus (interest is added on every day) after x days a late fee as well.

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8 minutes ago, tiggerlgh said:

There will likely be late fees as well. Most auto loans are daily interest therefore you pay late you owe more interest plus (interest is added on every day) after x days a late fee as well.

If this is a common clause for most auto loans, then I don't have concerns. I would be concerned if only this lender did that. 

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10 hours ago, yehong said:

If this is a common clause for most auto loans, then I don't have concerns. I would be concerned if only this lender did that. 

Yes.

 

 

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Posted (edited)

Question. Once Ch13 is paid off/discharged, would it be possible to get re-financing from other lenders that don't charge excessive interest rates? I had asked this question to a Credit Union and they said they will approve a loan but 12 months after the discharge. 

Edited by yehong

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34 minutes ago, yehong said:

Question. Once Ch13 is paid off/discharged, would it be possible to get re-financing from other lenders that don't charge excessive interest rates? I had asked this question to a Credit Union and they said they will approve a loan but 12 months after the discharge. 

You should have more options at that point.

 

What is your current interest rate?  Plenty of people here have gotten car loans after BK, and hopefully some will post the rates that they were able to get.

 

"Excessive interest" is a relative term.

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6 hours ago, yehong said:

20.7% or in simple words 21%. 

That's ugly...  but keep some perspective.  While that interest rate is in credit card territory, many people are under the weight of much larger balances -- and even higher rates.

 

You can minimize the damage in the immediate term by paying as much extra as you can toward the principal.  While you are doing that, research refinance options, requirements, etc., so you are ready to pull the trigger on a better option as soon as one is available to you.

 

This might be a setback, but it isn't a million dollar mistake.  Clean it up as efficiently as you can, learn and move on.  

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Sounds like a plan to me, thanks @cv91915!
 

 

Also, an off topic but related to my situation. I applied for "secured" credit cards last night with City and CapitalOne and both got declined. I was thinking about rebuilding my credit and scores so not sure if there's any other option that I should try. I am surprised that the credit card companies had zero risk with secured credit card but they still didn't approve it.  

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Better question for the credit forum. Need more background on you. Are you currently in BK13? What’s your score:baddies?

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Active ch13, got at least 2 more years to go. Credit score TU: 647 checked about two weeks ago. Every baddies that you can think of is in ch13 except for repos. Current on mortgage. City and CapitalOne were amongst the accounts listed in ch13 so that might be the reason for their denial. 

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1 hour ago, yehong said:

 I am surprised that the credit card companies had zero risk with secured credit card but they still didn't approve it.  

They DO NOT have 'zero risk.' That collateral is an asset that needs to potentially be protected if you got sued and lost.  As such, if an applicant is in such a tenuous position as to be a litigation risk, it makes business sense to reject them as a client, even with a secured and collateralized credit product.

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At some point as you go up the scale with an individual's credit risk, an account going delinquent at some point is practically certain.  

 

The cost of servicing delinquent accounts is high. 

 

The fact that there is a security deposit doesn't do anything to compensate the issuer for higher servicing costs, and no one is in the subprime card business to lose money (not even Marla Blow).

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Some lenders will not take the risk of extending credit to a consumer in an ongoing BK.  I got taught a lesson about that many years ago when trying to help a consumer.

 

My analyst told me NO, If they were to extend credit to a currently BK consumer, there is the possibility that this extension of new credit could jeopardize the prior creditor's claims, thereby opening this new creditor to litigation, and they want no part of that.

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