loan question

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This really doesn't have much to do with homesteading but thought maybe someone else has had this exsperience.

Last year while doing quite a bit of work around here i applied for and got a small loan from a loan company. I got a check in the mail, deposited the check and used the money for projects.

My problem is i never got a bill for the loan. I have called the loan office several times and have even gone to the loan office that issued me the loan check. No one at the loan office can find any information at all on me. They are telling me there is no record at all of them giving me the loan. Everytime i have talked to them they say they'll get back to me but never do.

I am afraid that in the future this will come back to haunt me. Even though I am concerned the loan company doesn't seem to be.

Has anyone else ever had this happen to them?

Most people say i should keep quiet about it but that's not honest. I did apply for the loan so I do owe the money back, only problem is no one at the loan company seems to interested in the fact that I do owe this money to them.

-- george (bngcrview@aol.com), November 16, 2001

Answers

Hi George,

We bought a freezer years ago and we were to make $19 a mo. payments. The first payment billed to us was for $9 which we thought was odd but decided they'll get it corrected next month. The next month they billed us $19 and we thought they had it taken care of. The next month we got a check for $10 for an overpayment. I finally called and explained the whole situation. He said don't worry about it, "it's paid in full". I went through the whole thing again and he acted like I didn't know what I was talking about. I gave up and enjoyed the $9 freezer for years, never hearing another word from them. So, IMHO, if you've explained the situation to them a number of times and they can't find anything on it just enjoy. If they find it someday you can start paying it back then.

-- Anna in Iowa (countryanna54@hotmail.com), November 16, 2001.


Send copies of the documents you have with a cover letter to the loan company asking for what you want. In point of fact, you should have a lot of what you need in the documents you have (payment amount, term, place to which payments are to be made, due dates, etc.). If you deposited their check into your account, your bank should be able to provide you with a copy of the deposited item (their check to you) to include with your letter. I would recommend sending your letter certified mail with return receipt requested.

If you know your payment amount, I'd recommend you start making checks out in the appropriate amount each month and sending them to the address where you signed the loan documents originally. If they send them back or whatever, keep them so if it does come up later at least it won't show you as intentionally failing to pay and obligate you for penalties and interest beyond what was originally agreed.

Odds are that if it's a larger concern, the lender has it in the wrong file, it was miscoded or something similar. If you have any further questions on this feel free to email me with info on the lender and I'll be happy to go to bat for you. Sometimes it's just knowing the 'magic words' to say to them. ;o) I hope this helps.

-- Gary in Indiana (gk6854@aol.com), November 16, 2001.


HI Gary, I took all the paper work with me to the office they took it from me read it over, went to the computor looked for something, handed me back my paperwork said not to worry about it that they would take care of it and get back to me. almost one year later and phone calls to them and still nothing. It just seems like they're not interested at all. Someone told me it is a write off for them.

It is funny that this should happen because several years ago i was in the hospital with viral meningitis (sp) while i was checking in the hospital staff kept telling me my bill would be taken care of. When i checked out a hospital worker told me to give her a call in a few days. I never called her back but she kept calling me back saying they wanted to take care of my bill. When i finally called back they said your bill is paid in full just watch out for stray bills. I never got any. I still think that is weird. I wonder what was going on with them. The hospital bill was over $10,000.00

-- george (bngcrview@aol.com), November 16, 2001.


You could do a credit check to see if anything has surfaced about it. There's some available on-line for a fairly minimal fee.

-- Susan (smtroxel@socket.net), November 16, 2001.

There may be a chance they will find the account at some later date and want interest for the whole time you had their money. You signed a contract and you can be sure it is in their favor. Don't stop untill you get it either straightened out and are making payments or somehting in writing that you don't owe them anything and signed by someone that counts. Best of luck

-- David (bluewaterfarm@mindspring.com), November 16, 2001.


George, I'd still send copies of everything to them certified mail so you have documentation that you tried. As David said, you don't want to end up paying all of the late charges and penalties for which you might be liable. Then, if you ever hear back from them you can provide evidence of your efforts.

You never did say if you had a payment schedule with them. Do you?

-- Gary in Indiana (gk6854@aol.com), November 16, 2001.


George, Well the ex-paralegal (now full time homesteader) is coming out in me. This is what I would do:

1. Send copies of everything and a letter explaining in detail the attempts you have made at repaying the loan and send it certified mail. Be sure and pay the extra money so the green certified mail card comes back to you as proof they received it. Put in your letter that you want a reply on the status of the loan from the loan company within 10 days from the receipt of the letter. Be sure you keep copies of the letter and all attachments and staple them together with the green card when it comes back for safe keeping. Documentation in this matter will be everything!

2. If you do not recieve a reply within that 10 days, mail them copies of all the above (including the original letter and copy of the green card showing the person's signature that recieved it) along with a new letter stating that you have recieved no reply and expect one within 7 days from the date of the new letter. Again, mail all of it together certified mail (be sure and get the green card back) and save all of this.

3. If you recieve no replay or one that is too vauge, again mail them copies of everything (documentation, letters, copies of green cards, etc. -- again via certified mail with green card coming back to you) and state that since you have attempted to resolve this matter and have received no replies, that if you do not recieve a response, via certified mail from them within 7 days from the date of that letter, you will assume that the loan company is not interested in repayment of the loan from you and the loan will then be considered "paid in full" and that no derrogative information will result on your credit report in this matter.

Be sure and state clearly (in bold if necessary)that they are to send thier response to you in certified mail. This way they will have to offer proof that they did contact you in the event they claim they wrote you "several times".

Hang on to all your documentation forever! Years from now it could creep up on your credit report and this way you have proof you attempted to resolve it and they declined to respond. You can take all the documentation to the credit bureau and they will assist you in getting it taken off.

By the way, God bless you for your honesty! Not many people would take all the steps you have taken. Best of luck!

-- Karen (db0421@yahoo.com), November 17, 2001.


I grew up with a banker for a dad. I don't know about the loan you got since it wasn't through a bank but will give you somthing to think about. If the place you went has a head office I would contact them, they will have the records. Alot of times the local banks will mess things up but you always have to answer to the head office with late pmts and back intrest if it is due it will catch up with you. Even on our house loan they said everything was going just fine with the loan but I had a feeling nothing was done so I called head office and ask to talk to somone in the new loans dept and they said they had not even gotten any paper work on it so I worked with her for the title search, servey and such. I found out later the bank manager was about 2 weeks away from retiring and wasn't doing anything!! Anyway if they have a head office check with them.Hope this helps

-- Teresa (c3ranch@socket.net), November 17, 2001.

George, I can't tell you how many times this type of thing has happened to my husband and me, as well as to others we know. Sometimes I wonder how any business continues to function. It is SOOOO frustrating to try to be honest and do the right thing, and even have people get angry at you for it! We got my parents a phone and put the bill in our name years ago, as my father wouldn't have a phone, and I could never reach my mother to see if she were ok, call her on mother's day, etc. Anyway, to make a long story short, they are "snowbirds" and would have to have the phone put on vacation rates when they left the South and again when they left the North to return. One entire year and half the next, the phone company kept billing us for the snowbird rate which is almost nothing, even after they had turned the phone back on to regular service. I called every month, and finally some woman shouted at me "Just what do you want me to do???" Guess it isn't their money, so some folks just don't care! Good luck, and keep trying! Jan

-- Jan in Co (Janice12@aol.com), November 17, 2001.

I figure that money is only owed if payment is demanded. If they refuse to accept payment, then enjoy the boon. I agree, to protect yourself, send copies of the paperwork with a cover letter via certified mail, return receipt requested. Keep copies of everything you send. For extra measure, get your signature notarized.

Why doesn't this ever happen to me?????

-- Skip in Western WA (sundaycreek@gnrac.net), November 17, 2001.



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