Anybody work in finance?? I need some advice

by Junction-Guy 29 Replies latest jw friends

  • Junction-Guy

    Ok here's the deal. Every since Amanda moved out I have been surviving on one income, and lately I have been strapped for cash. My bills are behind, my credit cards are behind, needless to say Im broke. Anyway today I received this check in the mail from HFC, the check was for $3000, and below the check was a letter stating that it is a real check, and that if you cash it, then it becomes a loan. Now I always thought that credit reports were private, however this company (HFC) which I have never done business with before, sent this in the mail to me. It makes me wonder what's going on. Im seriously thinking on cashing it, and then pre-paying my rent for 2 months, plus use some of the money to pay the first few payment, then leave the rest in my savings for emergencies. Once my rent is paid ahead, then I can have several paychecks freed up to where I can pay off the small credit cards. I realize the interest on this loan is high, however it just may jump start me enough to keep me going to the end of the year. Starting next year I plan to quit my job, cash in on my retirement, and pay off most of my bills anyway, and then move either to Ohio or Texas.

    Has anyone else ever dealt with these "surprise" checks? Besides the interest being high, what are the unkonwn consequences of this?

    How in the world does a finance company send money to people that they dont even know, without the aid of a credit bureau report? I have never given them permission to run my credit report.

    Any ideas?


  • juni

    Hi Dave,

    Yes, receive them all the time. Did you see how much interest they charge????? In some cases almost 30%!!!!!!

    Be very careful. Count the cost.


  • Junction-Guy

    Thanks, Im just wondering how they know about my credit. I could be unemployed, I could be anything, how can they send out a $3000 check without knowing who their client is or how good their credit is.

    Thanks Juni, yeah the interest is high, but im in a bind either way.


  • caligirl

    You are better off getting a second job temporarily to catch up than cashing one of those rip-off checks. Free easy money always has a catch.

  • Priest73

    I'm sure they've looked at your credit. almost anyone can (believe it or not), especially lending agents. This one sounds like predatory lending if you ask me. Be afraid. Very afraid. -t

  • Priest73

    Care to share the 'terms' of the loan?

  • Brigid

    This is predatory lending and I wish it were illegal. I think it's criminal when I drive into the poorest of the working poor neighborhoods and see "paycheck" loan places on every corner--it's exploitation of people who are down already.

    Do what you have to do, but I would be very very careful. This is very expensive money and there are cheaper monies to be had. Do you own a home that you could draw some equity out of (i.e. a HELOC--Home Equity Line of Credit? or a refinance--although, if you bought at a low rate, the rates now will kill you--but it's cheaper than 30%, I guarantee).

    Do you have friends or relatives that you could contractually borrow from at a low to no interest rate until you get on your feet again?

    Is your partner in any position whatsoever to get whatever kind of job possible just until you guys get past this hump? (barring a serious illness or a new baby, which negates minimum wage jobs by virtue of childcare costs, even a low-paying or part-time job would help).

    Take a piece of paper and a calculator. Look at how much you are taking in, vs. where your money is going. Look at all your credit card payments, and all payments that involve additional interest payments and look at what is the most expensive--(i.e. got a credit card that's costing 20% vs. a house payment that's costing you 5-6%?) Look at how you can possibly consolidate into the cheaper monies.

    Hope this helps slightly.


  • kittyeatzjdubs

    Don't do it. My mom fell for one of those and she spent over a year paying the money back to the company.

    You'd be better off getting a 2nd job like Cali said, even though it would suck.

    I hope everything gets better for you! You'll be in my thoughts. I've been broke before (think living in your car broke ). We're all here for you!

    luv, jojo

  • ballistic

    Have you thought of approaching a few regular banks or the bank who run your chequing account and asking for a $3000 loan? If they accept, you'll get a better rate. If they turn you down, you haven't lost anything.

  • sammielee24

    Read the terms and make sure you aren't locked in to a specific length of time and payments...that way, if you use it, you can pay it off at any time without penalty. As far as I know they are legal - and just like a credit card cash advance or such, they can work out for some people - you just have to be aware of what you are getting into. sammieswife.

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