About Loan

• [credit card] debt,
• personal loans,
• [bank] [overdraft]s
• credit facilities or lines of credit
• [corporate bond]s

• [Finance], [Personal finance], [Settlement (finance)]
• [Debt], [Consumer debt], [Debt consolidation], [Government debt]
• [Bank], [Fractional-reserve banking], [Building society]
• [FAFSA]
• [George D. Sax] and the Exchange National Bank of Chicago - Innovation of instant loans
• [Annual percentage rate] (a.k.a. [Effective annual rate])
• [Interest-only loan]
• [Student loan]
• [Payday loan]
• [Refund Anticipation Loan]
• [Federal student loan consolidation]
• [Federal Perkins Loan]
• [Stafford loan]
• [Title loan]
• [Syndicated loan]

Loan

Questions and Answers

To all Loan Lenders and those recommending a Loan Lender, why is it that we are not able to reply u via email?

Q) Especially to those recommending a loan lender to those in need, I noticed that most of them have never posted any questions before just answers and yet some claimed that they obtain the loan from here. How much have you paid and in how many payments before u obtain the loan? To Loan Lenders, why is it they you are never able to be downright honest with the whole transactions? Examples, Non Collateral Fees, Bank Transfer Charges, Bank Details and Contact Person, Company Profile, Proper Documentation for loan agreement both from your Company and the bank or IMF for that matter. And why is it that you can't provide the actual upfront payment involved in securing the loan? It's always payments after payments but the loan never seems to be delivered. And when asked for confirmation or clarification, u get angry and threatened to cancel the loan. Are all the Loan Lenders out there FOR REAL? What should I look for in a true, genuine, honest and reliable Loan Lender? Sometimes i just wonder if these loan lenders or recommenders understands english at all...???

A) Because they are all con-tricks of one sort or another .. A number are simply outright SCAMS - these are they types who advertise 'no credit checks' and 'only 3% Interest' etc (hard to believe it, but Bankrupts and morons with CCJ's REALLY BELIEVE they can get Loans at less than the base rate and/or without credit checks). These guys just demand payment 'up front' for 'application fees' and 'refundable deposits' (ha ha) .. and every time you pay them something they find another reason for you to pay more ("You have been approved and the Loan has been granted - we now have the money in our account but pay the 'Transfer Fee' ...).... after they have taken you for every penny they can, you are given some excuse why they can't make the Loan (which dosn't exist anyway) .. The rest are 'Agents' that actually DO make some attempt to find you a loan .. they still advertise unbelievable Interest Rates (eg. 8%) but they are usually honest enough to state 'Home owners only' .. you typicaly pay them £100's 'up front' and they typically find you a loan at 12 to 18% Interest secured on your house .. (or up to 60% unsecured)

Who needs a Guaranteed Loan Offer?

Q) I am Mr.John A. Macauley a private lender. I give out both private and commercial loans to both individuals and corporate business organisations at a low interest rate.Under my loan process, repayment can be made either monthly or yearly. I give out loan for: Free mortgage/loan assessment. Home Purchase Loans.. Refinance Loans.. Fixed Rates.. Adjustable Rates.. Land Development Loans.. Residential Investment Loans.. Multi-unit Loans.. Personal loans... Business loans... Auto loans... If you need more details or you wish to obtain a loan from me,you can contact me via e-mail royalheritageloaninvestment@yahoo.co.uk

A) Hi Maybe you dont understand but this is a question and answer forum and not a sales environment. Why not advertise in the proper areas and you may get the response you are expecting. You may end up getting reported on yahoo if you continue advertising. Dean

loan to pay off debts?

Q) Where did the idea of loans to pay off debts come from. How can a loan pay off a debt? You just owe the money to someone else! Also as these loans are often secured against property, they pose a real risk of you losing your house! Why on earth don't people with loans they cannot handle see organisations that sort out these problems with negotiated repayment plans like the citizens advice bureau.

A) You argue a strong point, one that I agree with totally. By using a personal loan, or worse, a home equity loan to pay of bills, you are essentially taking an unsecured debt and making it secure (with your most prized possession, your house). Failure to make usecured payments (such as credit cards and personal loans) will merely result in hundreds of annoying phone calls and letters, and at the worst garnished wages. Failure to pay a refinanced mortgage will end in bank forclosure and homelessness. Not a very intelligent decision. You are still paying same amout that you owe (usually more, due to a higher interest rate) and now just owe someone else. The best way to deal with debt is to pay your bills on time everytime. But if this is no longer an option, I would advise seeking some sort of debt settlement company to negotiate the principle owed, instead of consumer credit counseling, which shows on your credit report as a third party agency meddling in your finances, which is nearly as bad as bankruptcy.

Loan Application?

Q) When applying for a loan, is it a plus in telling the lender you are applying for loan to consolidate other loans? Will the lender think you are already in debt or willl appreciate your transfer of loan to him/her?

A) It should not affect the outcome of their decision as a lot of people want loans to consolidate other debts, including other loans.

confused loan?

Q) Im sorta confused. I heard you can get a loan if your employed? Do they mean if your just tempary employed or are going to be getting a job in a a few weeks because how else can you repay them? I really really need a loan of 10,000 pounds but i dont start my next job for another 2months but when i start my job i can afford the repayments but im not a home owner and im 18. Im feeling sorta desperat now as its urgent i can this loan, does anyone know anywhere that would give me a loan?

A) You are on a hiding to nothing and many of the answers so far are going to give you false hope. All legitimate credit providers will 'points score' a loan application. If you meet their minimum points requirement, you'll get the wonga. If not, please close the door on your way out. High interest outfits like Beneficial Finance will have a much lower cut off point than, say, Barclays or NatWest, but they will have a cutoff point nonetheless. For a tenant the most important criteria on the points score is your employment history, and for an unsecured loan generally a minimum of three years in one job is required. While that isn't carved in stone by any means I think you are going to find that nobody is going to want to know you until you have been in your job for at least a year, and even then you would be looking at a maximum loan of £1,000 - £1,500. £10,000? For an eighteen year old who has just started work? Forget it. You'll get offers from outfits like EasyLoan and NoWorriesLoans and Wentworth - the worst of the lot - but at best they are loan sharks and at worst crooks who will take your 'arrangement fee' and then become curiously hard to contact ... My strongest recommendation is that you join a credit union. You will have to save for a minimum of three months but then generally you can borrow three times what you have on deposit. Good luck.

yes loans have offered me a loan?

Q) yes loans have offered me a loan for £2000 at £65 a month the interest is an extra £1200 this is the only sort of place were i can get a loan as i have a really bad credit rating . do you think the interest is reasianble ??? its my only option

A) Try looking at; http://www.moneysavingexpert.co.uk It has a lot of tips for people with bad credit ratings and ways to improve it.

Loan application, good or bad? 2000GBP 19.23% 1 year.?

Q) I am thinking about raising money for a small venture, the company, yes loans. They quoted on phone just over 19% interest rate, and the total to pay back is about 2300 GBP But initially they require a 50GBP admin cost to process the loan, they say in the letter and during the call, the loan is approved. Does that mean it is confirmed approved,, or that once i give them 50 quid, they then process it and could come back and say no you don't meet the standards, and they are 50 quid the richer. Also if I pay it off early, it refers to a minimum rebate rate as set by the 1983 laws, so if i pay it off after 6 months, then i pay the remaining monthly payments, 6X193pm.GBP of thereabouts, less a rebate, is that a percentage set, does anyone know what the rate is. I suppose borrowing 2k and paying back 2300 is ok for the priveldge of borrowing it, but i just wondered.btw, any people in the business, please ask boss's to quit add on promos pressure, it was too much, not professional at all!

A) Avoid this loan as if it were plague ridden. 19.23% is very expensive to start with, then they are charging you an upfront admin fee which incidentally doesn't guarantee you the loan. The loan is 'approved' subject to underwriting criteria, they have the right to turn you down at any time. Finally to add insult to injury it is a 'Rule of 78' loan, look this up on Google, moneysavingexpert.com have a good explanation. They catch you for the interest even if you pay it off early. You could probably borrow double what you require from a supermarket bank and have lower monthly repayments, invest what you don't need with ICICIBANK and have a high interest bearing nest-egg.

Loan providers???????

Q) Hi, I would like a loan for 6000 pound over 5 yrs. I would say my credit rating is good/fair. I am living with my parents, employed (F.T) I missed a few payments on my Next directory account about 5 months ago, but nothing else bad. I have NO ccj's ect, and have always paid things by direct debit on time. Were is the best place to get a loan? I want a fairly good APR rate. I was considering applying for a Virgin loan, but I don't want to risk getting turned down cause Ive been told this affects credit scores. Thanks. I am using my friends account to ask this question. I am not a mummy of 2. I have No dependants. (just so you have the whole picture) Thanks.

A) Go to your bank first - they are far more likely to give you a loan than any of the other (reputable) loan companies, and you're likely to get a good rate. They might not have to do a credit test. Any other company will run a credit check on you. From what you say, your credit score sounds to be fine apart from a minor blip, but repeated credit testing will lower your score so don't get loads of quotes. Check out The Motley Fool - they have good advice on all the best deals but are responsible and tell you ways to get money without loans if possible. www.fool.co.uk

loan rates gone berserk?

Q) Look at this message I got from CAHOOT, its a scandal and surely must be illegal Your cahoot flexible loan interest rate. We have sent you an important email about your cahoot flexible loan account. Your flexible loan account interest rate has changed to 9.4% APR variable with effect from 6 December 2006 and 14.9% APR variable from 19 December 2006 This message is within cahoot.... it started at 5.9% can you believe and is now 14.9% absolute scandalous This is from their T&C's 13.2 We may change our interest rates or our day to day charges at any time for one or more of the following reasons: a. To maintain the competitiveness of our business as a whole, taking into account actual or expected changes in market conditions; b. To reflect actual or expected changes in money market interest rates; c. To ensure that our business is run prudently; d. To reflect a change in general banking practice; e. To reflect any regulatory requirements or guidance, or any change in the law or a decision or recommendation by a court or Ombudsman; f. To enable us to harmonise our banking or charging arrangements; or, g. To reflect changes in technology or in the direct costs we are required to pay others, or to take account of inflation. As per last question I have done that, told them its a scam, they answer was as follows.... oh, ps: never missed a payment Thank you for contacting cahoot in Coventry. We have undertaken a significant review of the cahoot flexible loan account, part of this analysis looked at the rates on this account against the rest of the flexible loan market and the increased costs of a flexible loan account. The cost of lending money has increased not only because of the increases in the Bank of England rate but also because of the increased risk costs on a flexible loan account. On a typical loan size of £3000 paid over 48 months, you will only pay around an extra £7.25 per month. We think the cahoot flexible loan account has some unique benefits that put you in control of your loan - take more money from your credit limit as and when you want and repay more without penalty. ...BLAH BLAH BLAH Oh, and cahoot dont offer this service anymore... they have ripped enough people off

A) sounds liek a scam to me especially since I looked over cahoots web site (England too not bad) I would fire off an email to my chaoot rep for explaination on this.

Loan Scam Alert !!!!!?

Q) There are many loan scams that are being posted in this area. One user, using the ID "chris p" is scamming loans from Nigeria. He asks for significant advance fees -- typically over £200 -- as "security" for his "loans" and also asks for your bank details. I have already filed violation notices on several of his posts. Be warned that if you contact him or any of the other scammers that post those ads you WILL lose any money you send him AND your bank account will be drained if you are foolish enough to provide your bank details to him. You have been warned! OK, Zippy, if you want to ding me for not "Asking a question," have a nut. I'll just keep posting warnings until your mouse-finger falls off! Or maybe you're just one of those dirtbag SCAMMERS? Well, hey! We hear from the scumbag scammer himself! Well, buddy, first off, your advance-fee "loans" are illegal. Then there's the issue of your "State Certified Lenders Association Nigeria" certificates -- since there's no such body in Nigeria. Cute "certificate" though! Me foolish? Maybe. American? Probably. But at least I do have a legitimate JOB unlike scam artists such as yourself. If nothing else, Sunshine, read the damn Community Guidelines and stop spamming ads on Yahoo! Answers! To put it in the British vernacular: Sod off! Hey, one more thing, scam-boy. Why is it that you don't allow e-mail or IM? Are you so afraid of being assaulted by your victims? Or are you just a two-bit scammer hiding behind a few dozen various IDs? More likely a small army of scammers working shifts at some coffee house in Lagos!

A) Its fantastic that ya warning people against all this conman who victimised others, especially those who are sympathetically cornered to a point of desperation for money. Yea money can solve alot of problems and my heart goes to those in genuine situations but do play smart. No stranger would offer to lend you money just because he likes 'dealing with honest people.'

Student Loan consolidation help?

Q) I am going to be going into a two year paralegal program starting in the fall and I am pretty sure that I got the Stafford Loan for $3,500 and I got a grant for about $900. The Paralegal program will end up costing about $11,000 so I'll need to take out a private student loan. I find all of the financial aid and loans to be very confusing but I was looking at a private loan through Chase Manhattan bank that didn't seem so bad. I was wondering about loan consolidation. Are there any banks that will consolidate federal stafford loans and a private loan together to help you have a lower monthly payment? Chase Manhattan said you cannot consolidate a federal and private loan but I was wondering if maybe another bank would do that? Or is there another smart way to go about handling your loans after graduation? I'm just trying to think of the whole picture and plan for graduating. Also, when you take out a private loan it seems like they all have the variable thing going on..why don't they offer a fixed rate? Do you try to consolidate and get a fixed rate when you're done school? Like I said before...financial aid is very confusing to me. Any help would be greatly appreciated. Thanks!

A) You'll be consolidating at the end of your education, if you struggle to pay different bills. But do not consolidate with a private company before the end of your scholarship, because you start paying interests from the day you consolidate. Good luck !

No docs loan/stated income home loans?

Q) I need some help with no docs/stated income home loans. My husband and I are in the process of getting pre-approved for a home loan. I was assigned a loan officer that asked for all documents, W-2, pay stub, bank statements, 401K. I provided him with all documents. He told me he will be using a stated loan because the fact the my husband pays child support will disqualified us. My husband credit is in the upper 700's close to 800 for the highest and mine low 700 lowest 706. Now here come the question is this loan officer trying to take advantage of us? If we provided proof of income don't we should be doing a full loan documentation? Oh and he is using my credit score vice my husband and he stated the reason child support again, we were approved already for a mortgage but the loan officer was not honest and we backed out of the deal and child supports was never an issue. I live in the San Diego, CA area. Can I make this loan officer use my husband score and full loan doc? Thx

A) Without knowing the full scenario although you described it very well I would state that it may be easier for both of you to go no doc because you dont have to verify the history of your financials. No doc loans are for the very elite FICO score persons who can qualify. Yet, be careful that you are not getting hit with rate charges because you are going No Doc. Some pro's to going No Doc are Quicker Funding Times and Closing Times over the traditional full doc. Child Support is such a stickler to banks and lenders that it can mess up the process of closing a loan. Make sure you can sit down with the loan officer or have the LO answer all your questions in regards to why it benifits you to go No Doc over Full Doc. If he/she cannot explain to you in a way that you can understand than get yourself another LO. Good luck.

Is this loan guy Chris Peter real?

Q) Here is what he sent me Hello, I am chris peter.Do you need a loan.Are you financially down?Are you in debts?Do you want to pay up your bills?I give out loans at 3% interest rate.I give out loan to personal and business loan to Business Men and women who are into Business transaction, I give out long term loan for three to five years maximum with your interest in this you can as well tell me the amount you need so that I send to you the terms and condition that is if you are realing interested in getting a loan from me, Loan is given out in Pounds and $US the maximum I give is 1,000,000 both in pounds and $US and the minimum 1,000 pounds and US$ so if really you are interested mail for more info on how the loan can be transfered to you. There is one Question i have to ask are a serious individual that we take a loan and pay back after duration with the interest, if you are honest I will trust you because I like to do business with Honest people if you are one you will get the loan IF HE IS A SCAM HE NEEDS TO BE REPORTED AND BANNED FROM THIS SITE!!!!! EVERY QUESTION ON HERE ABOUT A LOAN I SEE THE SAME CHRIS PETER

A) Professional business men do not send out letters with such poor grammar. No one is loaning money at 3%, especially for a handshake loan to a business. And money does not just drop from the sky and fall happily into your lap. If it sounds to good to be true, it usually is.

I need a 110% loan in Yen - where?

Q) I want to buy a property, 400-500k, without any down payment - so to cover closing costs and all that, i need a loan of up to 550k. This house is purely for renting - and the capitalization should cover a yen mortgage and then some. Ok, here's what I want - loan #1 - Mortgage in yen on 75% of property value/selling price. Loan #2 - piggyback equity loan of 25% (preferably 30-35%, because then i'd need no further loan) Possible loan #3 - secured loan - buy a $20,000 new zealand bond paying 8-10% interest, use it as to pay the interest on a 2% $80,000 Yen loan. Possible loan #4 - personal loan - say 40-100k? The main asset I have is a USA credit score of over 810. So - anyone know places that do risky loans or subprime loans, like with no income check (preferably no credit check too) sort of thing? ok, 100% mortgage is more like it (the 10% would be a secured loan or personal loan, different issue). Yes, i'm american, though not living in america, and the property wouldn't be in america either. I'm interested in a (international) multi currency loan - they're fairly common in expat communities. I'm just curious if anyone knows one on the level of sub-prime or not.

A) I can explain loans inside and out, but have no idea what part of your question is. What do Yen and NZ bonds have to do with this ?? $50K in closing costs ?? Are you in Japan ?? Nobody that I know of in the US will do what you want at any interest rate. Your credit score prob doesn't mean much outside of the US. I've never heard of a 110% non owner loan, but what do I know. If there is one, someone will speak up. ********************************************* MAN oh MAN, looks like we woke up some kooks. I'm not aware of a US based subprime lender that will lend on foreign real estate 100%+ non owner. There are always people looking to lend at some rate. Realize that with any 100% loan, the lender takes ALL the risk. Have you contacted large international banks local to you ? HSBC, CHASE, ABN-AMRO, BofA, BARCLAYS, ING, etc. There are loads of int'l banks today. Just for fun,, check out www.prosper.com Personal; loans are available there. Great site!!

Looking for great Loan Officers in San Diego Looking for Employment!!?

Q) #1 Brokerage in San Diego looking for: Position: Loan Officers/Brokers In this position, you will be working with over 100 banks to match clients needs to the products best suited for them. You will have extensive training and a corporate trainer and sales trainer on site. Requirements: .. Bachelor's Degree - Preferably from an Ivy League School (No recent college graduates) .. At least 2 years of sales experience and/or history of successful sales performance in any industry preferably Fortune 500 Training - If have loan experience first year income will be higher .. Smart and Outgoing Compensation: ..First Year Earnings - 172,800 - 200,000 (with no experience in the loan industry) ..With Experience in loan industry-Average 1-3 year at the company is making 250,000-300,000 ..Top Employees earning upwards of a million per year ..800/month car allowance ..maximum of 40,000 in vacation bonus ..For every 20k in revenue you generate in net proceeds you keep 4k for yourself on top of commissions My Client offers: ..NO COLD CALLING - Leads come to you!! ..Company spends 1.5 million a month in advertising (direct mail and infomercials) ..Company can offer the best rates to their customers because they fund over a billion dollars a month in loans and can therefore offer wholesale rates ( For example: banks like Wells Fargo actually offer his company a better rate to their customers than they offer even Wells Fargo's own brokers because of the volume of loans produced) ..They can do next day docks as well - in house - loans get be funded within 1 to 2 days .. Has Contracts with hundreds of banks .. Highest overall closing rates in the country .. Highest net income for loan officers on average than any other company in the country .. All sales manager's have a Master's Degree .. Company spends 3 times as much in advertising than their competitors, 12-18 million dollars a year in advertising .. Base salary to ramp up .. $800 a month car allowance once quota is met .. Great training .. Corporate Trainer and Sales Trainer On Site .. Ratio of 1:3 for Loan Processors to Loan Officers .. Very Exclusive Leads from Infomercials, direct mailing, etc. Please email me you resume in word format to be considered.. Positions will go quick so send ASAP... Location: La Jolla Salary/Wage: $172k-300k + 800 Car Allowance Education: 4 year Degree Status: Full-time Shift: Days Location: La Jolla Salary/Wage: SIX FIGURES Education: 4 year Degree Status: Full-time Shift: Days

A) Try advertising in the San Diego newpapers or corporate magazines.

Loan officers will be held responsible for Stated Loans gone bad?

Q) This question is posed to mortgage industry professionals (consumers can chime in also). There is a new required document for stated loans coming to the industry. It is a Predisclosure Questionaire form that must be signed by the originator and borrower that basically says: *The income you are stating is what you trully make *You understand the terms of the loan and your broker explianed to you thoroughly (and so on). This form will then be used after the loan closes for the Lender to call the Borrower and verify the info they initially gave. If the loan goes EPD the borrower will be called again and the questionaire will be re-evaluated. If anything is false the LOAN OFFICER will be buying back the loan. Whether you've stated $1 more than what they make or more, it is still that. Stated. A statement, no matter wage earner or self employed. Otherwise you would have taken them full document so please do not get up on your high horse. Has anyone else heard this?

A) I've heard the gov't is going to come down hard on the mortgage brokers - but not on banks. Hmmm....sounds fishy. Stated income is stated income regardless of what institution got the loan for you. It is clear that the banking industry has paid off many politicians so they will be excluded from just about all of the mortgage legislation going around right now. Another sad situation in a nation that continues to spiral downward. Stated income loans have always been a bit shady but a good loan officer will know to back up their numbers with documentation - even if that documentation never leaves the file.

5800.00 loan at 14.50 interest got in 2002 still it is 4800.00 what happened?

Q) in 2002 Igot a loan from the credit union for 6500.00 at 10% car loan later on the same day I got unsecured loan for 5800.00 at 14.50 interest . car loan was 210.00 monthly on un secured loan 165.09 per month.both loans were being paid on the same day so that I could'nt be behind other wise my car could be repossesed. in september this year the car was paid off.Then I wanted to buy a house I chequed my credit report and found out that my unsecured loan was closed and charged off in 2002 in December and my house loan was denied from the bank of America because of that closed and charged off account..I contacted the credit union and I was informed that it was amistake and they will contact the credit report and will take 90 days.to correct the error .The balance on this loan is 4865.00 what happened to all the money I have been paying since 2002. .Did they put all my payments on interest for 40 months is that regal.? The judge wants all the payments paid on that account

A) Is it a mistake that the account reports charged off??? Or is the balance a mistake?? 14.5 is a high rate. If you paid the minimum, most of it went towards interest. The bank can give you a statement showing how much of your payment went to principal and how much to interest. My car was 8K at 14%. My car note is $237 for the first year I paid just that. On my 1 year anniversary less than $400 had come off the principal. I now pay more. I paid it yesterday and of the $237, $92 went to interest. I paid $300 and requested the overage go to principal.

Terrible Student Loan Consolidation Rates.?

Q) Calling All Finance Majors....... I have 6 student loans (federal) for about $60K total balance. One of my loans has an interest rate of 2.8% FIXED. Everything else is a variable rate, presently at ~6.8%. If I consolidate all loans, I'll end up with about a 5.875% fixed rate. If I don't include the 2.8% loan in the consolidation, I'll end up with two loans, the one at 2.8% fixed rate and the consolidated loan which will become a fixed rate at ~6.8%. The question - I want to preserve the 2.8% part of my student loan with a separate payment BUT I don't like the 6.8% consolidated fixed loan rate. Are there other alternatives to the rates offered by loan consolidation companies that offer less than a 6.8% rate? What have you smart gals/guys done to beat these over inflated rates??? Thanks for all advice.

A) What I did ? I kept my low-interest loan (2,9%) I consolidate my 3 other loans. (5,9% instead of 7,2%) Good luck !

Study: Blacks pay higher auto loan rates As if we didnt know this already?

Q) WASHINGTON - Blacks have been charged higher auto loan rates than other auto buyers, federal research says. But the gap in loan rates could narrow, and possibly disappear, as the result of recently concluded lawsuits. ADVERTISEMENT Blacks paid a typical auto loan rate of 7 percent for new cars, compared with a rate of 5 percent for whites in 2004, according to a consumer organization's analysis of the Federal Reserve Survey of Consumer Finances. That was the most recent survey available. And blacks were more likely than auto buyers in general to have auto loan rates higher than 15 percent. For used car loans, 27 percent of blacks who buy cars were charged interest rates of 15 percent or more. Blacks were three times as likely as whites — 27 percent to 9 percent — to have auto loan rates at least that high, according to the report released Monday. Hispanics were paying a typical rate of 5.5 percent for new car loans, while 19 percent of Hispanics had loans for used cars over 15 percent, the analysis found. Lenders' suggested quote rates are based largely on the buyer's credit history, but auto dealers often raise the rate higher than that risk-related rate without discussing the rate with the customer, consumer advocates said. And they question the causes of those rate differences. "It's hard to believe that any differences in creditworthiness explain all of these rate gaps," said Stephen Brobeck, executive director of the Consumer Federation of America. "They size you up, the car salesmen and finance and interest guys. They must think African-Americans are more vulnerable to a markup." But a series of legal actions against auto finance firms seeking fair treatment for minorities could help solve that problem. "We had 11 lawsuits, the last of the cases settled last month," said Stuart Rossman of the National Consumer Law Center. "We reached a settlement with each of the finance firms. Our cases involved discrimination. We believe the terms of the settlements will eliminate discrimination." The first of the lawsuits was filed in 1998 in Nashville, Tenn., against General Motors Acceptance Corporation and was settled in 2004. The last settlement became final in April. The effects of those legal actions may not be known for some time, however. The National Auto Dealers Association questioned what accounts for the rate differences, but encouraged auto buyers to do their homework before going to buy a car. "The question that still is unanswered is why," said David Hyatt, a spokesman for the dealer's association. "People should do their homework and shop around. It speeds up the transaction, makes for a smoother transaction and is more likely to result in a satisfied buyer." Hyatt said an organization supported by the auto dealers, Americans Well Informed on Automobile Retailing Economics (AWARE), offers tips to potential car buyers. Chris Stinebert, president and chief executive of the American Financial Services Association, said his group is interested in educating consumers. "AFSA and its members believe there is no place for discrimination in the vehicle financing system," he said. The lawsuit settlements against auto finance companies call for caps on dealer markups, opportunities for blacks and Hispanics to get loans with no markups within the next few years, more information about interest rate terms and consumer education for minorities. "The lower markup caps have leveled the playing field," Rossman said. Consumer advocates say prospective auto buyers should call their bank or credit union for a rate quote to expect on an auto loan. That could protect them from unfair markups. Other ways to hold down costs. _Make all loan payments on time. _Buy a used car, or a less expensive new car. _Take out a loan over a shorter time. The survey of 4,519, including 605 blacks, was analyzed by Catherine Montalto, a consumer specialist at Ohio State University for the Consumer Federation of America. The survey was conducted between May and December of 2004.

A) That is why they wont vote for any Republicans too. African Americans know what being discriminated is really like, they haven't ever really been given a fair shake. My neighbors that bought a home were charged over $20,000 dollars more than the House even listed for because of this. This is just another way to keep them from prospering in our Country and I think it is counter productive personally.

Loan question?

Q) a few years back my mother decided to do a cash call loan without consulting anyone. She's paying the minimum payments and it will take her 30 years to pay the loan off. Her loan is 10,000 at 39%APR and her payments are about $325. Is it true that if she puts about $200 more a month on her payments the loan will be paid off at a much quicker time. A few years as opposed to 30 years. The loan caculators online say paying $475 a month would get it paid off in just 3 years, but they are for auto loans and i don't know if there is a difference. Thanks for any advice. No, she does not own a home, but her car will be paid off in a month so she will have about $250 more to put towards the loan each month. I'm trying to convince her that this would be better than trying to take out a new lower interest loan that she probably won't qualify for anyways. I wan't to make sure that the loan calculators are basically correct before I try.

A) If your mom continues paying 325 a month for the remaining of the 30 years, she will end up paying approximately 117,000 for a 10,000 loan. If she pays about 475.76 a month, she would pay her 10,000 debt in 3 years. If your mom owns a home, and has some equity in the house, please advise her to go to her local bank and ask for a line of credit. Normally the minimum amount for a line of credit is 10,000. For a 10k loan at about let's say at 8.5% (depending on credit) to pay off in 15y, her payment would be about 98.58. If she does own a home with equity and has more debt, she could consider refinancing, but I wouldn't suggest refinancing just for 10,000 cash out because the closing costs could be very high depending of the loan amount. I hope your mom can make higher payments so she could get out of this loan. I can't beliave somebody would pay so much in interest.