Auto loan – Union Des Victimes De Letat http://uniondesvictimesdeletat.com/ Mon, 13 Jun 2022 10:35:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://uniondesvictimesdeletat.com/wp-content/uploads/2021/09/cropped-icon-32x32.png Auto loan – Union Des Victimes De Letat http://uniondesvictimesdeletat.com/ 32 32 Fidelity Bank signs MoU with Autochek Africa to complement car loan offering https://uniondesvictimesdeletat.com/fidelity-bank-signs-mou-with-autochek-africa-to-complement-car-loan-offering/ Mon, 13 Jun 2022 10:35:15 +0000 https://uniondesvictimesdeletat.com/fidelity-bank-signs-mou-with-autochek-africa-to-complement-car-loan-offering/ Fidelity Bank Ghana has signed a memorandum of understanding with Autochek Africa, an automotive technology company, to complement its auto loan program. According to Divisional Director of Retail Banking, Nana Esi Idun-Arkhurst, her company seeks to form partnerships that will create convenience for customers. “Indeed, one of our key strategies for employee banking is to […]]]>

Fidelity Bank Ghana has signed a memorandum of understanding with Autochek Africa, an automotive technology company, to complement its auto loan program.

According to Divisional Director of Retail Banking, Nana Esi Idun-Arkhurst, her company seeks to form partnerships that will create convenience for customers.

“Indeed, one of our key strategies for employee banking is to provide innovative, personalized and simplified lending solutions to customers to enable them to meet their day-to-day needs and this business fits perfectly into this. strategy,” she said.

“We have already signed partnerships with car dealers who sell new vehicles. Therefore, this partnership creates a wider range of choices for our customers as Autochek provides us with opportunities in the used market and also comes with a well-structured platform that provides easy access to our customers,” said she added.

Autochek country manager Ayodeji Olabisi said the company thoroughly investigates its car dealerships before partnering with them.

“You want to buy a car, someone tells you to come to a place but you get there and they tell you that they moved the car to another place. People get scammed every time, but with us we only deal with registered resellers and verify before they are onboarded to the Autochek platform. In addition, we have verification processes, which is why we organize workshops for our partners. We perform numerous background checks to ensure a vehicle is suitable for financing.

He further explained, “Once you see a vehicle on our platform and apply, we need basic information such as your age, where you live, your Ghana card, utility bills utilities and your bank statement”.

Harold Ansa, acting director of personal banking at Fidelity Bank, said customers who sign up for the plan get promotional rates.

“Fidelity Bank with this partnership with Autochek, we are offering promotional rates to our customers. From now until August, we will make auto loans for customers at our promotional rates when they visit one of our agents. or branches. No stringent requirements to qualify for this. However, you have to fill out a form and download the Autochek app,” he said.

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Home and auto loan EMIs set to rise! 5 banks raise lending rates after repo rate hike | New https://uniondesvictimesdeletat.com/home-and-auto-loan-emis-set-to-rise-5-banks-raise-lending-rates-after-repo-rate-hike-new/ Thu, 09 Jun 2022 08:38:53 +0000 https://uniondesvictimesdeletat.com/home-and-auto-loan-emis-set-to-rise-5-banks-raise-lending-rates-after-repo-rate-hike-new/ ICICI Bank, PNB, Bank of Baroda, Bank of India and Central Bank of India among others have increased repo related lending rates which will lead to increased EMIs for home, car, educational and other loans for new and old customers. New Delhi: Following the Reserve Bank of India’s decision to raise repo rates by 50 […]]]>

ICICI Bank, PNB, Bank of Baroda, Bank of India and Central Bank of India among others have increased repo related lending rates which will lead to increased EMIs for home, car, educational and other loans for new and old customers.

New Delhi: Following the Reserve Bank of India’s decision to raise repo rates by 50 basis points or 0.5% to 4.90% from 4.40%, a large number of public sector lenders and private, including ICICI Bank, PNB, Bank of Baroda, Bank of India, Central Bank of India, have raised lending rates. Borrowers of home, auto, personal and other loans will now have to pay higher EMIs, due to recent rate hikes on repo-linked loans.

ICICI Bank Raises External Benchmark Lending Rate (EBLR)

ICICI Bank raised the external benchmark lending rate (EBLR) by 50 basis points or 0.50% to 8.60% from 8.10% previously. The lender’s official website noted that the new rate is effective from June 8, 2022.

PNB raises repo-linked lending rate (RLLR)

PNB raises repo-linked lending rate (RLLR)

Punjab National Bank has increased the Repo Linked Lending Rate (RLLR) from 6.90% to 7.40% {Repo Rate (4.90%) + Markup (2.50%)}. The new rate is effective from June 9, 2022, for existing and new customers.

Bank of Baroda (BoB)

Another public lender, Bank of Baroda, has announced an increase in the lending rate linked to Baroda Repo [BRLLR] at 7.40%, with the new rate in effect from 9 June 2022. “For retail loans, the applicable BRLLR is 7.40% from 09.06.2022 (current RBI repo rate: 4.90% + surcharge-2.50%), SP0.25%,” said Bob.

Bank of India (BOI)

Bank of India has raised the Revised Repo Based Lending Rate (RBLR) to 7.75%. The bank stated on its official website: “The effective RBLR wef of 08/06/2022 is 7.75% according to the revised Repo rate (4.90%)”.

Central Bank of India

The Central Bank of India also increased its RBLR by 50 basis points. The rate hike will impact borrowers who have taken out home, car, education and other types of loans from the public sector bank.

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FCMB is offering a N30 million car loan to make it easier for Nigerians to own a vehicle https://uniondesvictimesdeletat.com/fcmb-is-offering-a-n30-million-car-loan-to-make-it-easier-for-nigerians-to-own-a-vehicle/ Mon, 30 May 2022 18:54:33 +0000 https://uniondesvictimesdeletat.com/fcmb-is-offering-a-n30-million-car-loan-to-make-it-easier-for-nigerians-to-own-a-vehicle/ To encourage and simplify the ownership of vehicles for personal use by millions of Nigerians, the First City Monument Bank (FCMB) is now offering car loans of up to N30 million at a reduced interest rate. The FCMB car loan supports the acquisition of new and used vehicles (commonly referred to as “Tokunbo”), with N500,000 […]]]>

To encourage and simplify the ownership of vehicles for personal use by millions of Nigerians, the First City Monument Bank (FCMB) is now offering car loans of up to N30 million at a reduced interest rate. The FCMB car loan supports the acquisition of new and used vehicles (commonly referred to as “Tokunbo”), with N500,000 as the minimum loan amount a customer can access for a repayment term of up to 5 years .

This confirms FCMB’s commitment to improving the social well-being of individuals and improving access to credit for a higher standard of living for families.

Commenting on the unique value proposition, the Bank’s Division Head, Personal Banking, Mr. Shamsideen Fashola said, “Owning a vehicle is one of the most exciting times in a person’s life. However, many people struggle to save for a long time to realize this dream. To bridge this gap, we’ve created a value proposition that’s flexible, convenient, and empowering individuals, families, and businesses to realize their dream of owning a vehicle. Nigerians can now finance their dream vehicle with a car loan from FCMB at a reduced interest rate with monthly or annual payment options depending on their income. We therefore urge the public, including but not limited to employees, to take advantage of this opportunity to realize their dream of owning a vehicle”.

FCMB Auto Loan allows qualified Nigerians to partially finance the purchase of new and used vehicles while spreading the repayment between one and five years. The loan, which depends on the type of vehicle to be purchased, is open to salaried individuals and self-employed Nigerians.

According to the National Bureau of Statistics (NBS), the number of registered vehicles in Nigeria is 13 million. However, vehicle ownership in the country has declined due to rising prices. This is due to foreign exchange and import problems, leading to a drastic reduction in purchasing power and a drop in sales in the automotive industry.

A not-for-profit commercial banking institution, First City Monument Bank is a member of FCMB Group Plc, led by Ladi Balogun as Group Managing Director. The Bank is committed to COVID-19 recovery, income equality and poverty reduction by easing credit constraints for the poor and small businesses. FCMB’s intervention in the automotive sector aligns with Goals 3 and 10 of the Sustainable Development Goals (SDGs), which relate to well-being and the reduction of inequalities.

IN CASE YOU MISSED THESE FROM NIGERIAN TRIBUNE

FCMB offers 30 million naira car loan… FCMB offers 30 million naira car loan…

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Auto Loan Document Checklist | The bank rate https://uniondesvictimesdeletat.com/auto-loan-document-checklist-the-bank-rate/ Sun, 29 May 2022 02:23:06 +0000 https://uniondesvictimesdeletat.com/auto-loan-document-checklist-the-bank-rate/ Applying for a car loan can be a daunting task, but it doesn’t have to be. By preparing the necessary documentation in advance, you can ensure that the process goes smoothly. Commonly Used Auto Loan Documents When you apply for an auto loan, the lender may ask you to provide proof of the information you […]]]>

Applying for a car loan can be a daunting task, but it doesn’t have to be. By preparing the necessary documentation in advance, you can ensure that the process goes smoothly.

Commonly Used Auto Loan Documents

When you apply for an auto loan, the lender may ask you to provide proof of the information you provide. Here’s a quick breakdown of the main documents you’ll need and what they mean.

Proof of income and employment

When applying for a car loan, you will need to prove your income. The lender must see proof, such as a W-2, tax return, or pay stub showing your income as well as your employer’s contact information. You will still need to show proof of employment if you are self-employed, usually in the form of a tax return.

If you are not employed, you may still be able to show proof of income for car financing. You might have a partnership that earns money, such as rental income or investment income. Your lender will consider your total income, available cash, and credit history when determining your loan amount and rates.

Personal data to extract credit history

Each time you apply for a loan, you will need to provide detailed information about yourself. This information is used to pull credit reports which are then analyzed to determine if you are a good candidate for the loan and to calculate your loan rates. These details include your:

  • Name and previous names, if any.
  • Date of Birth.
  • Social Security number.
  • Address.
  • Phone number.

Proof of address

When you apply for a car loan, the lender will ask you for proof of address. This can be done using official documents with your name and address.

Usually you have to show two documents that give the lender the same information. One is usually a utility bill and the other can be a bank statement or a recently postmarked letter. Other documents you might provide include a pay stub or a copy of your lease or rental agreement if you have one.

proof of insurance

The lender wants proof that you have liability insurance and will likely require collision and comprehensive insurance since you are buying a car with a loan. This is to ensure that you will be able to repair the car in the event of an accident. Your proof of insurance must include your name, the name of the insurance company and your policy number.

Vehicle Information

In addition to all of your personal information, you will want to gather the following vehicle specific information if you have it.

  • Vehicle Identification Number (VIN).
  • Make, model, year and finish of the vehicle.
  • Current mileage.

Tips for completing an auto loan application

The time you spend completing your auto loan application will have a significant impact on your loan process and the rate you get. You must follow the following steps when completing your application.

  1. Complete the application completely and accurately. When completing your application, be sure to include all of the requested information, even if it may not seem important at first.
  2. List all sources of income you can count on. Income verification is an integral part of the auto loan application process and, as mentioned earlier, can include bank statements, W-2 forms, and pay stubs.
  3. Avoid outside financing for your down payment. It is recommended that you do not use your home equity or other loans to help fund your down payment. The lender will want to see that you have the money to buy the vehicle.
  4. Consider supplements. Decide what add-ons you want and whether you want to incorporate them into your loan. In addition to your down payment and the sale price, there are a number of additional costs that you will need to consider if you choose add-ons and do not pay for them directly.
  5. Read carefully. The auto loan agreement is a legal document, and you must read it as such before signing it.
  6. Make copies. It’s always a good idea to keep copies of all loan documents in a safe place.

Next steps

Getting a car loan is a time-consuming process, but being thorough means your application won’t be denied for a mistake. Having all your information together and getting financing before buying a car also simplifies the loan process.

Learn more

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FCMB is offering a N30 million car loan to make it easier to own a vehicle https://uniondesvictimesdeletat.com/fcmb-is-offering-a-n30-million-car-loan-to-make-it-easier-to-own-a-vehicle/ Thu, 26 May 2022 22:04:30 +0000 https://uniondesvictimesdeletat.com/fcmb-is-offering-a-n30-million-car-loan-to-make-it-easier-to-own-a-vehicle/ To encourage and simplify the ownership of vehicles for personal use by millions of Nigerians, the First City Monument Bank (FCMB) is now offering car loans of up to N30 million at a reduced interest rate. The FCMB car loan supports the acquisition of new and used vehicles (commonly referred to as “Tokunbo”), with N500,000 […]]]>

To encourage and simplify the ownership of vehicles for personal use by millions of Nigerians, the First City Monument Bank (FCMB) is now offering car loans of up to N30 million at a reduced interest rate.

The FCMB car loan supports the acquisition of new and used vehicles (commonly referred to as “Tokunbo”), with N500,000 as the minimum loan amount a customer can access for a repayment term of up to 5 year.

This confirms FCMB’s commitment to improving the social well-being of individuals and improving access to credit for a higher standard of living for families.

Commenting on the unique value proposition, the Bank’s Division Head, Personal Banking, Mr. Shamsideen Fashola said, “Owning a vehicle is one of the most exciting times in a person’s life. However, many people struggle to save for a long time to realize this dream. To bridge this gap, we’ve created a value proposition that’s flexible, convenient, and empowering individuals, families, and businesses to realize their dream of owning a vehicle. Nigerians can now finance their dream vehicle with a car loan from FCMB at a reduced interest rate with monthly or annual payment options depending on their income. We therefore urge the public, including but not limited to employees, to take advantage of this opportunity to realize their dream of owning a vehicle”.

FCMB Auto Loan allows qualified Nigerians to partially finance the purchase of new and used vehicles while spreading the repayment between one and five years. The loan, which depends on the type of vehicle to be purchased, is open to salaried individuals and self-employed Nigerians.

According to the National Bureau of Statistics (NBS), the number of registered vehicles in Nigeria is 13 million. However, vehicle ownership in the country has declined due to rising prices. This is due to foreign exchange and import problems, leading to a drastic reduction in purchasing power and a drop in sales in the automotive industry.

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What is it and how to find one https://uniondesvictimesdeletat.com/what-is-it-and-how-to-find-one/ Thu, 26 May 2022 03:56:15 +0000 https://uniondesvictimesdeletat.com/what-is-it-and-how-to-find-one/ A private loan – financing for car buyers buying from a private owner – may be easier to obtain than traditional loans. However, lenders may charge more because a private purchase is considered riskier than buying from a reseller. What is a car loan between individuals? A car loan between individuals allows you to finance […]]]>

A private loan – financing for car buyers buying from a private owner – may be easier to obtain than traditional loans. However, lenders may charge more because a private purchase is considered riskier than buying from a reseller.

What is a car loan between individuals?

A car loan between individuals allows you to finance a vehicle sold by the owner and not by a dealer.

“Millions of retail vehicle sales occur each year, typically at lower transaction prices than would normally occur at a dealership,” says Strati Papageorge, senior vice president of automotive product management for PNC Bank. .

“These vehicles are typically older and have higher mileage, and offering financing to consumers who wish to purchase such vehicles gives them flexibility and options they might not otherwise have.”

Auto loans to individuals have some disadvantages, however. For example, they are not as widely available as loans for the purchase of new vehicles. And often they have higher interest rates.

“Due to the nature of private party sales, prices tend to be higher than what you would see if you went to a dealership,” says Papageorge. “But the trade-off for customers is usually a lower vehicle price, so they can still have an affordable payment.”

There are ways to alleviate the inconvenience associated with peer-to-peer auto loans and find a lender who will offer auto loan you can afford.

How a car loan between individuals works

Your budget and the local availability of used cars will be the main factors to consider. Fortunately, the funding process itself is quite similar to buying a new or used car from a dealership.

Create a budget

To create your shopping budget, start with your credit history and score. By checking your credit, you will have a good idea of ​​what interest rate and loan amounts you may be eligible for.

Once you know your credit status, it will be easier for you to calculate your monthly paymentdecide how much you can pay out of pocket and determine how much you will need to fund.

Choose a vehicle

After establishing your budget, find out what type of vehicle you want. Know the type, age and mileage of the car you want before approaching a lender. This will determine the type of loan you qualify for.

You can also check the cost with your own estimates from reliable sources, like Edmunds and Kelley Blue Book. These can guide you to a reliable car.

And don’t be discouraged if you can’t find exactly the make, model and finish of your dreams. Private sales are naturally limited to local inventory, so you should have a few options in mind. You might be able to use a national website to find the right car, but traveling for a test drive and buying — and handling out-of-state title transfers — can be more trouble than the car is worth.

Compare lenders

Once you know which vehicle you plan to buy, compare the prices and consult with a few potential lenders to find the loan products that best suit your needs. Compare interest rates, loan terms, monthly payments, fees and penalties.

Not all lenders offer car loans to individuals, so confirm that the one you are interested in does. Since personal loans are usually more expensive, it’s essential to check rates and get pre-approved before you start shopping. This way you will have a good idea of ​​what you can spend and what you can expect to pay each month.

Finalize the deal

After signing the loan agreement, your lender will send a check either to you or directly to the seller. If you or the seller opts for direct deposit, make sure the seller is aware that the transfer of funds may take a few days.

The state in which the transaction takes place determines what must be done to legally transfer ownership to you. This can be found on your state’s Department of Motor Vehicles website and should be reviewed before purchasing the car.

Your lender will provide you with payment due dates and a Amortization schedule, which tells you how much money will go to interest and principal each month. If you can, opt for automatic payment. It’s a great way to make sure you pay on time without sending a check or constantly logging into an online portal. Just be sure to check that payments have been made each month.

4 reasons to consider a private loan

Although personal auto loans may charge higher rates than standard auto loans, there are some advantages:

  1. There are better vehicle offers: Selling price from private sellers tend to be lower than car dealerships. With a private auto loan, you get financing just like you would at a dealership, plus the savings a private sale is likely to offer.
  2. It can be cheaper than a personal loan: A Personal loan is likely to be more expensive because it is not guaranteed. A lender assumes more risk when there is no collateral to secure the loan if the borrower defaults.
  3. They offer flexibility: Rather than being limited to what a dealership offers, you can get the vehicle you want affordably from a private owner.
  4. There are loan options for bad credit: Even those with poor credit might be eligible for private auto loans. But like all loans offered to borrowers with bad credit, they come with higher interest rates and monthly payments as well as a higher overall cost.

Where to find car loans between individuals

Not all lenders offer auto loans to individuals, but most major financial institutions — like community banks, local credit unions, and online lenders — do.

Some lenders may require the vehicle to meet certain criteria. For example, they may require the car to be less than 10 years old with less than 100,000 miles in order to consider the buyer for a loan. This is common with any used car, whether you buy it from a dealership or a private seller.

Other lenders may have a minimum loan amount. If the vehicle you want is $6,000, but the lender doesn’t offer such small loans, you’ll need to find another lender.

Carefully review the lender’s criteria before applying for a car loan from a private party to avoid damaging your credit for a loan you don’t qualify for.

How to apply for a car loan between individuals

Once you’ve found the vehicle you want to buy from a private owner, be prepared to provide the lender with basic personal information, including:

  • Your full name, date of birth, address, social security number and contact information.
  • Employment and income information.
  • Current debt securities, such as a mortgage.

You should also have certain documents and details on hand regarding the vehicle you wish to purchase, including:

  • Make and model, model year and mileage.
  • The vehicle identification number, or VIN.
  • Deed of sale which details the purchase contract.
  • Copy of vehicle registration.
  • Copy of vehicle title.
  • A written payment estimate from the seller’s lender, if applicable.

Lenders have different requirements for the borrower and the car that will secure the loan. You should be able to find out what these requirements are before you apply.

If your credit is not good, consider delaying the purchase until you improve your credit score. Waiting a few months won’t turn your credit from bad to perfect, but it can make enough of a difference to save you money on the interest rate and monthly payments.

Alternatives to car loans between individuals

If you haven’t received approval, or can not find a private auto loan that matches the car you want to buy, there are still alternatives you can pursue to buy through a private seller.

Compare personal loans

The best alternative to a car loan between individuals would be a Personal loan. With unsecured personal loans, the lender considers your income and credit score to determine loan eligibility. The vehicle will play no role in an approval decision.

This may be a good option if:

  • The vehicle you want to buy is too old or has too many kilometres.
  • The vehicle is purchased with a salvage title.
  • The minimum loan amount is more than you want to borrow.

Although a personal loan can give you the flexibility to buy the vehicle you want, it will likely carry a higher interest rate than a private car loan and could end up costing you more.

Shop at a dealership

Dealerships may have higher prices than private sellers, but getting a loan is much easier. If you have been rejected for a private car loan, check to see if you qualify for in-house financing offered by the dealership. You may also qualify for a used car loan from a lender who previously rejected you for a private loan.

You will also have a different selection of vehicles. This may not be the ideal circumstance if you are really looking to go through a private sale, but it may be the most accessible option.

Build up your savings

If you are not in a hurry or do not have haven’t found the right private sale yet, continue to grow your savings. The more you can invest in a car, the less money you will spend overall. And if you’re looking for older, cheaper models that would not benefit from a traditional loan, you won’t need to take additional risks by financing your car with a personal loan.

The bottom line

Auto loans to individuals are a quick, relatively pain free way to buy outside of a dealership’s high-pressure environment. They are not as common, but you will still be able to find competitive options from various lenders. And since the selling prices for private purchases are lower than those charged at the dealership, you may be able to save money.

Learn more

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How to Avoid a Yo-Yo Auto Loan Scam https://uniondesvictimesdeletat.com/how-to-avoid-a-yo-yo-auto-loan-scam/ Wed, 25 May 2022 03:15:49 +0000 https://uniondesvictimesdeletat.com/how-to-avoid-a-yo-yo-auto-loan-scam/ Car loan scammers, or “yo-yo” scammers, are a serious problem in the United States. These scammers operate by offering a very low interest rate at the start of the conversation, only to increase the rate once the driver has signed the contract. This can leave consumers confused and frustrated, and often results in them paying […]]]>

Car loan scammers, or “yo-yo” scammers, are a serious problem in the United States. These scammers operate by offering a very low interest rate at the start of the conversation, only to increase the rate once the driver has signed the contract.

This can leave consumers confused and frustrated, and often results in them paying more for their car than they originally agreed. But there are a few steps you can take to avoid being tricked by a yo-yo scammer and educating yourself is key.

What is a yo-yo scam?

A yo-yo scam happens when you walk in to discuss a car loan. The dealer may offer you a car loan with a very low interest rate at the start of the conversation, usually a much lower rate than normal. The rate may sound too good to be true, and it usually is.

You’ll be asked to sign papers with the lowest rate listed, but days or even weeks later you’ll get a call or email saying the dealership can’t offer you that interest rate. They will also say that you have to renegotiate, otherwise the offer will be canceled completely.

The newly negotiated interest rate is usually much more expensive than the original loan, creating a confusing and frustrating experience. When you ask about the rate hike, chances are the dealer will say you didn’t qualify for the original interest rate, even though they initially made you believe you did.

How to avoid yo-yo financing scams

Following these four steps will help you avoid yo-yo scams.

  1. Read the fine print. Even if you think you have a good idea of ​​the potential costs of a finance contract, read the fine print. Research terms like “conditional” and what they mean if you don’t fully understand the context. If a rate or price is higher than the original quoted, ask why.
  2. Avoid excessive or unnecessary charges. It is possible for a dealer to add additional fees to your final loan amount, which will result in higher payments. If you are unsure about this, request a copy of the final documents, including add-ons, before signing anything.
  3. Don’t take a car loan until you’re ready. Many people are tempted to get their car back as soon as possible. But financing the car at the dealership can lead to increased pressure from the seller. It’s best to have the financing to pay for the vehicle in full before you even set foot in the dealership.
  4. Don’t be afraid to walk away. It’s always an option. And if you do decide to walk away from the dealership, be sure to write down what made you leave so you can keep those flags in mind for the next dealership you visit.

Ultimately, if you want to avoid yo-yo financing scams, you can always skip financing at a dealership altogether. With online lenders, you can be prequalified and find the best loan option without ever leaving your home.

What to do if you are the victim of a yo-yo scam

There are a few immediate actions you can take when a dealer tells you your financing has been declined.

Review the purchase contract

Check if the contract is a compromise of sale. If so, you may be able to return the car and receive all the money you deposited with your trade-in, if you made one.
If the dealer has already sold your trade-in vehicle, you should receive the cash amount of the sale. And if the dealership refuses to refund the amount, you should contact your state attorney general’s office immediately.

Request the rejection letter

Ask for the letter from the lender denying your auto loan application. If the dealership doesn’t provide it, you should probably pull out immediately.

See if you can get your own financing

If, of course, you want to keep the car, see if the lender will give you the door price. From there, you can see how to secure your own financing from an online lender, bank, or credit union.

How to report the scam

You can report yo-yo auto loan scams to the Federal Trade Commission (FTC) online, by phone, or by mail. When reporting, you will need to provide personal information to help authorities identify you. You can also contact your state attorney general’s office for assistance.

In line

To get started, visit the FTC’s online complaint form at ftc.gov/complaint. After providing some information about the yo-yo scam you fell victim to, you can select the “Autos” area as the category in which to report the scam. From there, select “Other” as the subject and “Auto loan, lease, or refinance” as the specific type of scam. You will then be directed to another page where you can provide more information about the scam, including the scammer’s email address, phone number, and names of people you have spoken with.

Once you submit the complaint, it will be reviewed and assigned to an investigator, who will investigate the scam and possibly contact you for more information.

Phone

You can also contact the FTC by phone, Monday through Friday, 8 a.m. to 5 p.m. ET, at 877-382-4357.

To post

Finally, you can also complete and mail the FTC’s online complaint form. After you complete the form, it will be reviewed and sent to an agent for further investigation, but it may take some time for the investigator to contact you.

The bottom line

Car loan scammers are an unfortunate risk that comes with buying a vehicle, so it’s important that you do your homework before signing on the dotted line. Be sure to educate yourself on the features of these loans and ask the lenders to explain any questions you have along the way. Finally, if you think you’ve been the victim of a yo-yo scam, report it.

Learn more

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Refusal of a car loan? Here’s everything you need to know https://uniondesvictimesdeletat.com/refusal-of-a-car-loan-heres-everything-you-need-to-know/ Mon, 16 May 2022 07:00:00 +0000 https://uniondesvictimesdeletat.com/refusal-of-a-car-loan-heres-everything-you-need-to-know/ A car loan application may be rejected based on your credit history or current financial situation. But by contacting your lender and improving your finances, you can work on creating an application that won’t be turned down in the future. Why have I been refused a car loan? Lenders frequently reject applicants based on their […]]]>

A car loan application may be rejected based on your credit history or current financial situation. But by contacting your lender and improving your finances, you can work on creating an application that won’t be turned down in the future.

Why have I been refused a car loan?

Lenders frequently reject applicants based on their credit score, credit history, and overall debt load.

  • Errors in the application. You can be denied a loan because of simple errors in the application. If you miss a section or write down incorrect information, lenders may reject you without giving you the opportunity to update the incorrect details.
  • Bad credit rating. Most lenders have a minimum credit score as part of their eligibility criteria. In general, lenders want to see fair credit – a score of 620 or higher. If your credit score is below this requirement, you will be immediately denied.
  • Limited credit history. If you have a limited or no credit history, lenders will not be able to assess your ability to make future car loan payments. They may use this as a reason to decline your application.
  • Big debt. If you have a lot of debt from other loans or credit cards, your DTI ratio – or debt to income ratio – will be higher. A DTI ratio of 50% or greater is considered a red flag and may result in rejection.

What to do if you were refused a car loan

A rejection is not the end of the world. Take a few steps before reapplying to increase your chances of being approved.

Contact the lender

Contact the lender. Find out why your application was denied – lenders are required to tell you the specific reasons. If it is not sent automatically, request it within 60 days of your request, otherwise it will not fall under the Equal Credit Opportunity Act.

If it was something as simple as an application error, you can make adjustments and reapply. If it’s your credit score or other debts, you can work on improving them before reapplying.

Improve credit score

Your credit score is one of the main factors that lenders consider when applying. Take the time to improve your credit score by checking your credit report, paying off your debts on time and reducing your rate of credit utilization.

It will take a few months. If you’re in a hurry, consider other options while you work on your score. But once you’ve established a strong recent repayment history, lenders will see you as less risky.

Minimize your debt

Reducing your debt is key to attracting future lenders. Not only should you focus on paying off your current debts, but avoid taking out new loans or credit cards.

Review your budget and try to remove any unnecessary expenses before reapplying. Debt Consolidation is also a great way to minimize your debt-to-equity ratio (DTI), which lenders use to determine if you have enough money to comfortably afford another loan repayment.

Look for low credit lenders

There are lenders who accept bad credit. It could be a way to get you behind the wheel sooner rather than later.

These lenders specifically cater to drivers with low credit scores. However, compare options carefully – these lenders tend to offer much higher interest rates that could cost you thousands of dollars in the long run.

Other Options

The options don’t end with your ability to quickly improve your credit and reduce your debt, although both can certainly help.

Resellers “Buy here, pay here”

A BHPH dealership isn’t perfect, but it can be a good option if you have a low credit score and are desperate for a vehicle.

BHPH dealerships sell and finance vehicles on their lots. Credit approval standards tend to be lower and the process is much faster than traditional loans. But the interest rates are very high and there are fewer vehicles available.

Co-signed car loan

A co-signed auto loan is when you still bear full responsibility for the monthly payments but someone else is backing your loan. As with a joint auto loan, your credit history and the credit history of your co-signer will be considered during the application process. It increases your chances of approval and can mean more favorable interest rates and terms.

Solidarity car loans

A joint car loan is when you and someone else – usually a partner or spouse – share equal responsibility for a car loan. The lender will consider both income and credit scores when making an approval decision. A joint application may also result in a lower interest rate and the possibility of taking out a larger loan due to the additional income.

The bottom line

If you have been refused, take a step back. Your lender must provide a letter stating why you were rejected.

And as with everything in finance, preparation is key. The next time you apply, do your research, monitor your credit score, and reduce your total debt. This will help ensure your application is the best it can be when you submit it to a lender.

Learn more

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CFPB Blog: Stop overcharging car loan add-ons | Sheppard Mullin Richter & Hampton LLP https://uniondesvictimesdeletat.com/cfpb-blog-stop-overcharging-car-loan-add-ons-sheppard-mullin-richter-hampton-llp/ Fri, 13 May 2022 07:00:00 +0000 https://uniondesvictimesdeletat.com/cfpb-blog-stop-overcharging-car-loan-add-ons-sheppard-mullin-richter-hampton-llp/ On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent and competitive auto loan market” by drawing attention to the complementary products for which auto dealers and finance companies “often charge to consumers all payments for any additions”. -on lump sum products at the origin of the car loan, […]]]>

On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent and competitive auto loan market” by drawing attention to the complementary products for which auto dealers and finance companies “often charge to consumers all payments for any additions”. -on lump sum products at the origin of the car loan, and they generally include the cost of the lump sum as part of the total vehicle finance agreement. CFPB reviewers focused on how managers handle these add-on product fees when the loan ends before the potential benefits of the add-on product end.

The CFPB notes that its recent Oversight Highlights Reports indicate that examiners found repairers engaged in unfair practices by failing to seek reimbursement from third-party administrators for “unearned” costs after the consumer was no longer in possession of the vehicle. Reviewers have also found that some repairers engage in unfair acts or practices by miscalculating extended warranty products or other product refunds after repossession and attempting to collect incorrectly calculated deficiency balances.

Put into practice : This blog post represents the latest in a series of public warnings from the CFPB that it is closely monitoring the conduct of the auto industry, particularly with regard to ensuring affordable credit, maintenance and compliant collection and fair competition (we recently discussed the CFPB’s latest look at auto finance companies in previous blog posts here and here). Auto finance companies should be aware of these warnings and consider taking steps to implement some of the best practices in this blog before they are subject to supervisory review or enforcement action.

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Upstart seeks to expand indirect auto lending business in Q2 and go national in Q3 https://uniondesvictimesdeletat.com/upstart-seeks-to-expand-indirect-auto-lending-business-in-q2-and-go-national-in-q3/ Wed, 11 May 2022 14:13:34 +0000 https://uniondesvictimesdeletat.com/upstart-seeks-to-expand-indirect-auto-lending-business-in-q2-and-go-national-in-q3/ Girouard reported Monday that Upstart facilitated the refinancing of more than 11,000 auto loans in the first quarter, nearly double the amount it processed in 2021. It also more than doubled the rate at which applicants for refi have been approved. He said the company launched its first AI model for auto refinance, partially trained […]]]>

Girouard reported Monday that Upstart facilitated the refinancing of more than 11,000 auto loans in the first quarter, nearly double the amount it processed in 2021. It also more than doubled the rate at which applicants for refi have been approved.

He said the company launched its first AI model for auto refinance, partially trained by Upstart’s own auto loan performance data. He described it as the beginning of the process of building the model Upstart sees as a core competitive advantage.

Borrowers who refinance auto loans through Upstart as of Jan. 1 have saved an average of $4,800 over the life of the loan, the company said.

Upstart, whose main business is currently personal loans, does not seek to be a lender itself. It makes money by routing offers to lenders who trust the company’s AI to check borrowers’ creditworthiness — and potentially help them win back customers whose risk has been misunderstood by a credit model. traditional subscription. Girouard said 11 of the company’s 57 lending partners in the first quarter had no minimum FICO score requirement.

Upstart’s underwriting decisions often require no human intervention. The company’s automated approval rate for all loan applications rose to 74% in the first quarter from 71% a year earlier.

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