- Report: #117941
Complaint Review: Beneficial Finance - Green Bay Wisconsin
-
Author Not Confirmed
Why?
Beneficial Finance
2350 East Mason St Ste 32 Green Bay, 54302 Wisconsin, U.S.A.
Phone:
920-469-6750
Web:
N/A
Categories:
Business Rating:
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Tell us has your experience with this business or person been good?
Beneficial Finance ripoff, offer one thing, then make another offer sounding better, give you a rate bate sounding pretty good and then switch rates Green Bay Wisconsin
I got a real check in the mail for $5,001.10. All I had to do was deposit it and it would result in a loan, making it so you could get your money fast. On the back side of the letter it did say the rate would be 28.900% with payments for 60 months at $158.44.
Instead of cashing the check, I called the number on the back which put me in contact with the local office. After asking if they had anything with a lower interest rate, the gentleman, whom I was speaking to, said I was preapproved for up to $30,00.00 at the 28.900%. But, if I wanted to consider refinancing my 1ST MORTGAGE, he had a deal for me. I could pay off all my other bills and even get almost $20,00.00 extra cash for an interest rate of 8.25%. I told him my current mortgage was only at 8.00%, so why would I want to do that? He said if I made 12 consecutive on time payments, my mortgage rate would decrease by .25%. And it would continue to decrease after each continious 12 month period of on time payments. Of course this sounded great. I was getting all my other bills paid, extra cash to do as I wanted and my LOAN RATE WOULD BE DECREASING EACH YEAR.
So, of course, I gave him all my information in order to start the loan procedure. I did have 1 problem that he needed to consider. I had a silent second mortgage for $25,000.00 owed to the city. (A silent mortgage is one where no payments are made, no interest accrues, it just sits there until the house is sold) He said he had dealt with these mortgages before and there would be no problem with it. Then I was handed off to a different person who would apparently do the paperwork. I told this girl that I would like $10,000.00 as soon as possible, because my husband was looking at a very good deal on a car, but that deal ended that same week. I asked her the time line we were looking at. She said all could be accomplished within a week and if not, I could still get the $10,000.00 advanced to me.
Next thing I knew, an appraisal was done, which came back with plenty of equity for the loan. I was advanced the $10,000.00 at a rate of 23.99% since the title work was not completed. I was told everything would be ready in a few days andd I would just have to pay the 23.99% for a short time.
Next thing I knew, my mortgage rate had changed from 8.25% fixed, with it lowered every 12 months with on time payments to a 9.37% 2 year arm. The girl helping me now, said the gentleman I had talked to earlier didn't know what he was talking about and had given me a wrong rate, in telling me 8.25%. There is quite a large difference in 8.25% and a 9.37% arm. Next I was told they did not do escrow, which I had been used to. I would now have to pay my own taxes and insurance (taxes which would be due in 3 months).
My husband took ill, which was probably good and bad. It gave me some time to think about what was going on here. I called a few other financial institutions about a loan and were given much better quotes and with my escrow that I was so used to having.
The topper was today. I called to speak to THE MANAGER, whom I found was the 1ST PERSON I had spoken to, that supposedly did not know what he was talking about. I told him that I was probably going to go with another institution and asked when any payment would be due on the $10,000.00 they had already given me. I asked him since he was the manager, why he had told me 8.25% and then it was changed to 9.37%. He said he had it wrong on his sheet he had looked at. Then, he told me the rate was now going to be 10%. I didn't go any farther with that!
Next this MANAGER SAID he had a meeting and hung up on me. But the final kicker is that in the mail TODAY THE SAME DAY I TALKED TO THIS MANAGER, we got a note saying we were unapproved for the loan, but that we were approved for a smaller amount (the $10,000.00 at 23.99%).
DON'T DEAL WITH THESE PEOPLE. THEY MAKE THINGS SOUND GOOD AND THEN TRICK YOU.
Robin
Green Bay, Wisconsin
U.S.A.
Click here to read other Rip Off Reports on Beneficial aka Household Finance
Instead of cashing the check, I called the number on the back which put me in contact with the local office. After asking if they had anything with a lower interest rate, the gentleman, whom I was speaking to, said I was preapproved for up to $30,00.00 at the 28.900%. But, if I wanted to consider refinancing my 1ST MORTGAGE, he had a deal for me. I could pay off all my other bills and even get almost $20,00.00 extra cash for an interest rate of 8.25%. I told him my current mortgage was only at 8.00%, so why would I want to do that? He said if I made 12 consecutive on time payments, my mortgage rate would decrease by .25%. And it would continue to decrease after each continious 12 month period of on time payments. Of course this sounded great. I was getting all my other bills paid, extra cash to do as I wanted and my LOAN RATE WOULD BE DECREASING EACH YEAR.
So, of course, I gave him all my information in order to start the loan procedure. I did have 1 problem that he needed to consider. I had a silent second mortgage for $25,000.00 owed to the city. (A silent mortgage is one where no payments are made, no interest accrues, it just sits there until the house is sold) He said he had dealt with these mortgages before and there would be no problem with it. Then I was handed off to a different person who would apparently do the paperwork. I told this girl that I would like $10,000.00 as soon as possible, because my husband was looking at a very good deal on a car, but that deal ended that same week. I asked her the time line we were looking at. She said all could be accomplished within a week and if not, I could still get the $10,000.00 advanced to me.
Next thing I knew, an appraisal was done, which came back with plenty of equity for the loan. I was advanced the $10,000.00 at a rate of 23.99% since the title work was not completed. I was told everything would be ready in a few days andd I would just have to pay the 23.99% for a short time.
Next thing I knew, my mortgage rate had changed from 8.25% fixed, with it lowered every 12 months with on time payments to a 9.37% 2 year arm. The girl helping me now, said the gentleman I had talked to earlier didn't know what he was talking about and had given me a wrong rate, in telling me 8.25%. There is quite a large difference in 8.25% and a 9.37% arm. Next I was told they did not do escrow, which I had been used to. I would now have to pay my own taxes and insurance (taxes which would be due in 3 months).
My husband took ill, which was probably good and bad. It gave me some time to think about what was going on here. I called a few other financial institutions about a loan and were given much better quotes and with my escrow that I was so used to having.
The topper was today. I called to speak to THE MANAGER, whom I found was the 1ST PERSON I had spoken to, that supposedly did not know what he was talking about. I told him that I was probably going to go with another institution and asked when any payment would be due on the $10,000.00 they had already given me. I asked him since he was the manager, why he had told me 8.25% and then it was changed to 9.37%. He said he had it wrong on his sheet he had looked at. Then, he told me the rate was now going to be 10%. I didn't go any farther with that!
Next this MANAGER SAID he had a meeting and hung up on me. But the final kicker is that in the mail TODAY THE SAME DAY I TALKED TO THIS MANAGER, we got a note saying we were unapproved for the loan, but that we were approved for a smaller amount (the $10,000.00 at 23.99%).
DON'T DEAL WITH THESE PEOPLE. THEY MAKE THINGS SOUND GOOD AND THEN TRICK YOU.
Robin
Green Bay, Wisconsin
U.S.A.
Click here to read other Rip Off Reports on Beneficial aka Household Finance
4 Updates & Rebuttals
Julie
Guthrie,Oklahoma,
U.S.A.
This is why I always say....
#2Consumer Suggestion
Fri, May 27, 2005
This is way I always say pay cash. Sure you have to make some serious sacrifices to turn things around, but geez, having to go through this would have made me batty. I saved my money and paid cash for a car. I am almost entirely debt free now. I can't stand it when I look at how much I have paid out in interest charges alone. PAY CASH. Easier said than done, but it can happen!
Steve
Corona,California,
U.S.A.
If it sounds too good to be true...
#3Consumer Suggestion
Thu, May 26, 2005
...it probably is. We have all been told that many times in life, right? I've been a loan officer for several years now and I see this "bait and switch" sales tactic everyday. I respond to their loan inquiry on Lending Tree, Lower My Bills, Loan Web, etc and help them create a new home loan that accomplishes their goals. The lenders, media, the internet, etc. has whipped everyone up into a "low rate" frenzy. These low rates are reserved for the highest rated loan scenarios as defined by Fannie Mae. It is not just the homeowner credit score that earns the great low rate, it is also the CRITERIA OF THIS PARTICULAR LOAN that earns the low rate and payments. Example: Homeowners "A" have 700+ FICO scores, never any late payments of any kind, great work history, plenty of income, low debt ratios, etc. No debt consolidation. They want to refinance their home mortgage just to get a better rate. The loan-to-value is 70%. Today, May 26, 2005 they would get a 5.7% rate on a 30 year fixed rate mortgage without paying any points. Easy deal. If they are taking some cash out to pay bills, add about .25% to the rate. If they get the loan to value up to 80% add another .25%. If their FICO scores were in the low 600's add at least another full 1%. You see? Stop being so "rate driven" and LISTEN CAREFULLY to what the loan officer is saying and asking. ASK questions back to confirm what you are being told and why. If the person on the other end of the phone sounds like a "used car salesman", then that what he was probably doing last week. Now he is a "loan officer". He is TELLING YOU WHAT YOU WANT TO HEAR. Now, on the other hand, if the professional you are speaking with takes the time to take a full credit application, ask you about your home, its value, your other liquid assets, your jobs, your income, your credit history-GOOD and BAD, and really listens to what you want to accomplish. He offers money saving suggestions or alternatives if there is something better available. He KNOWS his products thoroughly, and listens to you. Who would you rather have handle your single largest financial transaction? The guy who really has a thorough understanding of your loan request or the guy who was selling 1989 Hyundais last week? Remember....if it sounds tood to be true, especially in a home loan, it ALWAYS is.
Steve
Corona,California,
U.S.A.
If it sounds too good to be true...
#4Consumer Suggestion
Thu, May 26, 2005
...it probably is. We have all been told that many times in life, right? I've been a loan officer for several years now and I see this "bait and switch" sales tactic everyday. I respond to their loan inquiry on Lending Tree, Lower My Bills, Loan Web, etc and help them create a new home loan that accomplishes their goals. The lenders, media, the internet, etc. has whipped everyone up into a "low rate" frenzy. These low rates are reserved for the highest rated loan scenarios as defined by Fannie Mae. It is not just the homeowner credit score that earns the great low rate, it is also the CRITERIA OF THIS PARTICULAR LOAN that earns the low rate and payments. Example: Homeowners "A" have 700+ FICO scores, never any late payments of any kind, great work history, plenty of income, low debt ratios, etc. No debt consolidation. They want to refinance their home mortgage just to get a better rate. The loan-to-value is 70%. Today, May 26, 2005 they would get a 5.7% rate on a 30 year fixed rate mortgage without paying any points. Easy deal. If they are taking some cash out to pay bills, add about .25% to the rate. If they get the loan to value up to 80% add another .25%. If their FICO scores were in the low 600's add at least another full 1%. You see? Stop being so "rate driven" and LISTEN CAREFULLY to what the loan officer is saying and asking. ASK questions back to confirm what you are being told and why. If the person on the other end of the phone sounds like a "used car salesman", then that what he was probably doing last week. Now he is a "loan officer". He is TELLING YOU WHAT YOU WANT TO HEAR. Now, on the other hand, if the professional you are speaking with takes the time to take a full credit application, ask you about your home, its value, your other liquid assets, your jobs, your income, your credit history-GOOD and BAD, and really listens to what you want to accomplish. He offers money saving suggestions or alternatives if there is something better available. He KNOWS his products thoroughly, and listens to you. Who would you rather have handle your single largest financial transaction? The guy who really has a thorough understanding of your loan request or the guy who was selling 1989 Hyundais last week? Remember....if it sounds tood to be true, especially in a home loan, it ALWAYS is.
Don
Connellsville,Pennsylvania,
U.S.A.
Not Uncommon
#5UPDATE Employee
Wed, May 25, 2005
Your situation is not uncommon. As an employee in a loan sales office, it was their job to get your attention and make you interested in a mortgage loan. The truth is, there is no way for any representative to quote you a guaranteed rate or any other loan term until it is final approved. Factors such as loan to value percentage, debt to income ratio, disposable income, and credit qualifications are what determine how your loan is priced. It sounds like the sales office was forced to make the loan to 100% of your equity for consolidation purposes (which increases the rate due to higher credit risk), and change it to an ARM for to lower the inital payments just to budget the deal, due to less income than expected. What you need to realize is that no quote, offer, rate, term, or payment is legally binding until the contract is signed; and no proposal is in any form a commitment to lend. It clearly sounds like this deal was not the best option for you, and you realized that soon enough. Its unfortunate that some managers and employees do not value honesty and integrity as a part of their everyday business.
