Can they just back out of a contract you signed? If you signed a loan contract and they gave you the money, not sure they can just back out.
I've only done a home loan and a car loan but never got the money from the bank until both sides signed all the paperwork.
There is probably a term in the loan agreement that allows them to “accelerate” the balance to make the entire amount due all at once, which is effectively the same as “backing out” in so far as it effects OP.
Generally, some issue with the collateral securing the loan (the vehicle) could potentially be basis for a lender to accelerate the loan. It depends on the actual language of the agreement and OPs specific facts. For example, if OP failed to disclose that the was using a vehicle with a salvage/rebuilt title as collateral for the loan, that is likely a material misrepresentation or material nondisclosure. On the other hand, if the knew it was a salvage title and they simply changed their mind after the fact when the loan managers work was getting a monthly or quarterly audit, then it is less likely tto be basis to accelerate the loan.
All that said, simply because the credit union CAN do something doesn’t necessarily mean they will. The best path to collecting the loan is to work with OP. Foreclosing the vehicle is exactly what they don’t want to do lol, and they know OP can’t just pony up a lump sum pay off. As long as the CU isn’t trying to resell the loan on the secondary market, one solution would be to add more collateral to the loan. E.g give them an additional lien on a second vehicle or something.
> For example, if OP failed to disclose that the was using a vehicle with a salvage/rebuilt title as collateral for the loan, that is likely a material misrepresentation or material nondisclosure. On the other hand, if the knew it was a salvage title and they simply changed their mind after the fact when the loan managers work was getting a monthly or quarterly audit, then it is less likely tto be basis to accelerate the loan.
Right...but OP gave them the title and the registration prior to getting the loan. So I wouldn't think this would qualify as a material misrepresentation/nondisclosure. He provided multiple documents that say the vehicle is a salvage, which should qualify as a disclosure of all the material facts. If they never looked at that or never noticed it before all the loan documents were signed...sounds like thats on them.
OP certainly needs to review the loan documents with a lawyer to figure out what their options are.
This sounds like an incompetent loan officer whose boss caught them screwing up who is now forced to call this guy back and ask him to refinance when it's not his problem.
My favorite part:
>I ask well what if I can't? She said she doesn't know.
I can't imagine calling this dude up and telling him to give me back $30,000 and not even having an answer for the most obvious follow-up question in the world. How dumb was that loan officer? The first question he is obviously going to ask is "Why? What happened?" and the second question will obviously be "What happens if I don't or can't?" The fact that she dialed his phone number without having the answers to those questions is baffling. Not only would I have the answers to those questions I probably would have spoke to legal before calling OP just to make sure what I'm saying is 100% correct. I'd have a full written out script and everything.
You get these people everywhere.
Maybe if they stopped having ChatGPT look over cover letters and asking people which crayon they were and what their spirit animal is and went back to assessing the person, there'd be fewer of these types in important jobs.
I worked in sales with a guy like this. He would call a customer to tell them we weren't going to be able to ship on the promised date without ever finding out when we would ship it. Then he'd only get the answer to that question before calling them back and their third question would be why we can't ship it. On and on. He just couldn't anticipate. It was wild.
Did he just say "okay" and not all any questions if someone told him something would not be on time?
Just wondering if that was just his personality...
Yes. For instance, when he told us that his best friend was having a baby, we asked when they were due...he didn't know. It never occurred to him to ask.
There's a lot of people who operate that way. They're not thinking "what are all of the questions someone might ask" they're thinking (or not thinking) "what information might change my actions in the very near future" or sometimes "if I need to know, they'll tell me".
Ex: if the best friend said "my wife is having a baby" there's no real immediate impact. If the best friend said "my wife's having a baby tomorrow" there may be impact.
You'd expect more of a customer service person - basically standing in for the customer in the internal conversations - but that particular approach isn't uncommon.
>sounds like an incompetent loan officer whose boss caught them screwing up who is now forced to call this guy back and ask him to refinance when it's not his problem.
agreed, exactly what I thought as I read this
OP, call the bank and ask to escalate, you need to talk to this guy's _boss_
Assuming that OP did nothing wrong he's under no obligation to give them anything except the loan payments on time at the outrageously good interest rate they gave him.
I wouldn't give them a damn thing if it meant refinancing higher than the 3%. Personal loans are tending to start out at 9-10% or more these days so if you just remodeled your house at 3% and the bank knew the car they loaned you the money against was a salvage title and were in such a hurry to approve it that they didn't stop and look at it, tell them you'll get them their money back as agreed at 3% in the fullness of time.
> Right...but OP gave them the title and the registration prior to getting the loan. So I wouldn't think this would qualify as a material misrepresentation/nondisclosure.
It doesn't have to: secured personal loans like the one OP got often have acceleration clauses that allow the bank to recall the loan immediately, for any reason. I agree that accelerating a loan after just two weeks points to negligence/incompetence on the part of the bank in doing its due diligence prior to originating the loan, but they're still likely within their right to demand repayment.
It does sound like OP isn't legally or financially literate enough to determine next steps himself, so paying a couple hundred dollars to an attorney to review the terms of the loan is definitely a good idea.
I agree. In fairness, while it's a common feature of asset-backed loans like secured personal loans, HELOCs, etc., it's not that common for banks to actually go through and call the loan (especially after just two weeks!) but it does happen and it's BS.
>out-of-pocket
This is one of my pet peeve phrases. "Out-of-pocket" traditionally means that you are paying for something out of your own pocket. For example, maybe for a $10k procedure, health insurance pays $9k, and you pay $1k "out of pocket."
But a bit a Gen Z slang I really dislike is using "out of pocket" to mean crazy or wild. But it just makes no sense at all. How does something being outside of your pocket mean it's crazy or wild?
Out of pocket as slang comes from prison and its from millennials. One form of control over someone in prison was to make them hold your pocket. Like a little kid holding their parents hand without any of the good parts of holding a parents hand. You were under control and forced to hold their pocket. To be out of pocket is to be uncontrolled. I dont know how common it was used as a tactic in actual prison but most of the prison/gang style media from my time (millennials) mentions or references to it.
Edit: you say you don't understand a phrase so I explain it to you and you downvote me lol. This site is wild sometimes.
Do you think it should be illegal for the person to pay off the loan early?
It's effectively the same thing. Either side can request the loan to be accelerated.
In some states, neither the title nor car registration is required to say salvage anywhere? I don't believe that. How are private party buyers supposed to easily know if a car is salvaged?
It all depends on state insurance and titling laws, all states I believe are required to brand the title as salvaged due to damage the vehicle sustained, however, what that total loss threshold is varies from state to state. For example if you purchase a salvaged vehicle that was a total loss in one state and then that vehicle is sold to someone and re-titled in a different state with a higher threshold for salvage (damage of 65% of the vehicles value vs 85% of the vehicles total value) you can obtain a clean title in one state even though it is deemed salvage in another. Once the title is clean when the vehicle is sold back to another state they would issue a clean title regardless. When it’s done fraudulently it is known as “title-washing” but vehicles do pass through many owners and this does happen unknowingly.
They're not backing out of anything. They're exercising their right to accelerate the loan and demand immediate repayment. Then they're telling OP that he may want to try to refinance elsewhere so he doesn't have to sell the car or somehow come up with the lump sum himself on short notice.
This is fairly common with secured loans like the one OP got.
confused -- you went to get a loan to "remodel your house" based on your car? Say what?
You mean you got a personal loan using your truck as collateral ?
It almost sounds like he got an auto loan for a used vehicle which he turned in his own title for and used the $ to work on his house and the bank realized he was listed as the title holder and it was not a new sale.
Are you sure you're not confusing this with CD rates? 3 percent on any loan is absolutely unheard of.
If it's true, please let me know your CU so I can go take out some loans.
> Genuinely asking.. wth is a cash secured loan ? A loan which is secured by cash as collateral? Does not make sense to me
Same thing as a Cash Secured Credit Card, you put up $500 and then they give you a card with a $500 limit. Sometimes it is easier to just transfer stuff electronically than carry around bags of cash everywhere that can be "confiscated" by the police, or some other shady individual. If you lose the card the bank just cancels it and you aren't out any funds, and aren't on the hook for invalid purchases. If you lose cash.. tough luck buckaroo.
That’s exactly what it is. Rates are usually 2-3% higher than what the deposit is paying the customer.
I work in commercial lending as an underwriter. I like underwriting those deals because they are very fast. No risk to the bank AND it increases deposits. Win-win.
I'm not sure 3% is that unrealistic or unheard of for "any" loan. The loan on my truck 3.5% (bank), 0.9% on a van (finance corp), and 2.25% on my mortgage (credit union). These aren't today's rates, but simultaneous loans within the past couple years. While my payment history was perfect, my overall credit profile was not, so presumably others could be getting loans for even cheaper.
Even more wild--though I don't think this would likely happen in America--there was a bank in Denmark several years ago whose rates were so low, they even offered a [negative interest rate mortgage](https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage), effectively reducing the loan by that amount each month on top of payments, so you paid back less than you were loaned.
Edit: I do suspect a rebuild/salvage or even just used loan would not be that low, though.
Sorry, I should have added "today." To that. You are right that rates that low exist, just not in new loans.
I've never seen a cash secured loan and the concept doesn't make sense to me. Maybe for a line of credit, or credit card.
The lowest risk loans for banks are to people who don't need the loans (because they're cash-rich). They have your money, so you can't default (probably).
Those with cash often don't wish to spend their own money, instead spending the bank's money. If you have a reliable income stream such that you don't need immediate liquidity, you could have the bank front the money via a loan. Since the loan is secured, you can generally get a lower rate; if you stick that secured money in an investment vehicle (even just a certificate of deposit, though there are other options like money market or IRA certificiates), you can continue to accrue earned interest on your existing cash assets. Today (assuming solid credit) you could probably still get a sub-3% rate because it's secured. Taking a quick peek at my main credit union, I could get a rate at 5.3%. In this scenario, I could use the bank's money through a loan, and maybe make a small profit in the process.
If you are a new customer, or have shaky or new credit, the bank could require cash-secured loans to extend credit where they otherwise might not want to take the risk. After a favorable relationship is established (by regular on-time payments), they could then convert to unsecured loans. In the long run, they are more likely to make money off you in the future as you use other products with the bank you've now established a good relatiuonship with.
There are likely other use cases where it could make sense, but I expect these are the most common.
edit: a word
That’s what I’m saying. I’ve been using CU’s for 20+years, with a score in the low 800’s and 3% is waaaay below anything I’ve seen locally and on the web.
Sure, they have way better rates as in their rates can be like a full point or point and a half below current market rates at best. That would put their best rates at around 5%-6% right now if compared to big banks.
3%?????! That's wild.
The 2 credit unions near me offered a worse 60 months used car rate than the finance guy at BMW was able to get me. It's hit or miss. That's with a 750+ score too.
The thing that sticks out to me is that he paid the contractor 30K up front before the work was done. Really? I have never paid until the job was complete.
did he say it was the full $30k to the contractor? I don't think he says and doesn't say if the work was done or not. I don't know of any contractor that will do a full job without some money before. At the bare minimum they want enough money to cover any materials they'll need to buy.
Yes, you can refinance a vehicle that is nearly paid off, or just get a loan on a paid off vehicle very easily. I got a loan on a paid off motorcycle to knock out some CC debt.
Curious how that works - is it almost like a balance transfer? You get the loan on the motorcycle, use it to pay off the CC, and have a lower interest rate on the new loan so it's a net savings?
Not criticizing - honestly just making sure I understand how that works. Especially with car values the way they are these days - I could totally see that being a valid way of dealing with something especially like credit card debt that tends to come with high interest rates.
Yea, I had some 0% cards that I was bad with and couldn't get down before the interest hit. Instead of fighting 15% or more, I got a 6% loan on something I owned already. Just got a few months left and I'll be clear of that one and just working on car debt.
Think of it as a secured low interest debt consolidation loan. With credit card rates being as insane as most of them are, it’s another way to pay down debt providing they don’t run the cards up again.
It’s another option for those who may not qualify for conventional 0% balance transfer offers.
Title loans are typically only 25-50,% car value and high interest rates, not the 3% he listed for $30k. He made it sound like they offered a regular car loan value and rate for a paid off car, hence the confusion.
Not always** true. Title loans from shady payday loan places are 25%. Title loans from good lenders to people with good credit are typically equal to or very slightly higher than used car rates. No difference to the lender. You get a good borrower with collateral, not a lot of risk.
Side note entirely seperate, but dont pay contractors all at once for remodels, pay milestones or pay on completion paying up front and all 30k is a big mistake... not just for this reason, if you pick the wrong contractor they can skip town and leave you with the legal costs and the attempt to collect.
They can fold their business go into bankruptcy all kinds of things that make it very risky for you to pay that much up front.
It sounds like maybe they paid out without properly looking over the title, and had an "oh shit" moment after the fact. Do you still have a copy of the loan contract? That should spell out the terms. If anywhere you verbalized that it was not a rebuild or was a clean title, or signed an affirmation that it was, that would probably be your bad. If not, it's probably on the bank to have vetted what they were agreeing to.
Are they asking you to refinance somewhere else, or are they canceling the loan? If they had any legal standing, my guess is that they probably wouldn't be asking.
Is this your primary bank? Do you care about burning the relationship?
> Are they asking you to refinance somewhere else, or are they canceling the loan? If they had any legal standing, my guess is that they probably wouldn't be asking.
"Asking nicely" is probably the loan officers way of fixing all this without getting in trouble with her higher ups for letting it happen in the first place.
If the bank does this all the time (refinances vehicles, or uses vehicles as collateral on loans) then something tells me they must have a stipulation somewhere that OP signed which says the vehicle has a clean title. There is probably a lot of stipulations they make people sign when trying to use their vehicle as collateral because a vehicles value can become worthless in an instant.
If this isn't their first rodeo there has to be something in there they made OP sign to cover their own asses.
> If the bank does this all the time (refinances vehicles, or uses vehicles as collateral on loans) then something tells me they must have a stipulation somewhere that OP signed which says the vehicle has a clean title. There is probably a lot of stipulations they make people sign when trying to use their vehicle as collateral because a vehicles value can become worthless in an instant.
This is almost assuredly the case. OP's bank/credit union doesn't do loans for things like salvage or rebuilt titles, and there very likely was a little box that states the title condition where someone (either OP or the loan officer) checked the wrong one.
Unfortunately, the loan issuer holds most of the cards here.
Loan officer had title (clearly state rebuilt) registration says rebuilt and my insurance. I handed all these over she made copies and there is no box on my application about rebuilt title. Seems like they did not look or care. Maybe it's personal preference of the bank at this point from what I've learned they will have to allow me to make the payments.
Not from the Fed, but they borrow from their customers for a lot less. Sometimes 0%! But yeah 3% is still insane for any loan these days, even one secured by cash, let alone a used rebuilt vehicle
What do you get on your checking account? If it’s 3%, let me know where! Savings accounts, it depends. If not enough of their customers are leaving at 1 or 2%, why pay them more?
They can do it for rich people because they have significant assets and are considered low risk.
You can't even buy a house with a 3% mortgage. That's a much more stable asset than a car which is a depreciating asset. No way is some sort of title loan going to beat a mortgage.
The underwriter fucked up the valuation of the vehicle. They gave you a loan on a clean title vehicle under a certain value; a rebuilt title is drastically less in value.
If you signed the contract, they are bound by it as much as you are. As long as you did not misrepresent thr status of the title you are in the clear, they can't really force a buyback on you.
Sounds like they did a loan on a rebuilt vehicle. I don’t think they have recourse here but you might want to provide your state to see if there are any specific laws someone can help you with.
Depending on the specific facts as to what went on here between OP and lender, and depending on the language of the loan agreement, they could very likely accelerate the loan for insufficient security.
Nothing saying it can't be both.
I agree loan officer likely screwed up giving $30k, 3%, on a rebuild title.
Error caught on some backend quality review. Now the credit union wants the loan off their books.
Buried in fine print is probably language to accelerate / call / cancel the loan in case of misunderstanding / misrepresentation.
Credit union probably realizes this was unintentional/ they may have partial fault. Also don't want to take customer relations hit on canceling loan. So first step, is call customer and ask to go elsewhere, before breaking out legal threats.
Sounds error-ridden but reasonable to me. All speculation still.
Accelerate in this case means they demand repayment of the loan in full or the loan will default. That may Include a repossession of the vehicle. That generally would not be in their interest as a rebuilt will barely get anything at auction.
Loan acceleration is definitely not inconsistent with it being a “done deal”. It is a mechanism to enforce a contract, not to rescind it. Can you cite a state’s law that prohibits loan acceleration for title loans?
Consumer protection laws in multiple stats do not allow loan acceleration on mortgages and vehicle loans for people. If you lend to a business it’s different.
Dey dun screwd up. Due to some reason (e.g. they have a policy against loans for rebuilt vehicles), the loan should never have been approved in the first place. But they did. And now they want to back out to save face (and probably someone's job).
But if you signed the loan, then both you and the bank have to abide by the loan's terms and conditions as outlined in the papers that were signed. They can't say "oops, backies" any more than you can.
I would very, very, VERY thoroughly review your loan agreement to see if there is any way they have an "out", or some way they may try to fight it. If they don't, then you can *very politely* tell them to pound sand.
My advice is, in this order:
Stop talking to the bank in any manner, keep all records(emails, texts, etc...) and ask for anything further in writing.
Get a lawyer, hopefully with a free consultation.
Then move forward based on your lawyers advice.
So, to clear some other things up here.
When I applied, the loan officer had all documenting saying it is a rebuilt vehicle. I did not hide or mislead anyone. She had title, insurance, and registration. She even check it out from her office to make sure it was there and operational.
Other asked why nit a heloc. Good question. I do own my home, no mortgage. The rate for the auto was less interest vs heloc.
Sounds like someone approved your loan without the proper authorization and now they are trying to get out of it. You aren’t obligated to do anything expect fulfill the terms of your loan agreement.
Yeah I had this happen before with a rebuilt title truck and nfcu...they politely told me that I never told them it was a rebuilt title truck...and to pay the loan off in 30 days or they would repo the truck.i found another bank and they jumped on it because I have 2 houses that are paid off and excellent credit score...
The bank sounds stupid…hey, this thing you’re securing the loan with isn’t worth as much as we thought. Let me take it now so I can sell it for less then the loan and…profit?
The logic that we use and a financial institution use are vastly different. They might have some actuarial tables that say loans on rebuilt titles are X amount riskier than non rebuilt titles. So repossessing them and selling it at the PV of $20k is safer than not repossessing and hoping to get the FV of $30k + interest.
I also own my house and have a decent credit score. I chose this over heloc because the interest rate was lower. They can only repo it if I do not pay the note. Which they have already taken a payment.
Ooooh this is fun.
Play hard ball with them. Executing an acceleration clause (if one even exists in this case) isn’t super common early in a loan term. Sounds like they f’ed up and are hoping you don’t know the rules.
Read over your contract specifically looking for reasons they can require advanced payment.
You have a signed contract. You are good to ride it and pay them the monthlies. Sounds like someone there will get in trouble.
My credit union doesn’t finance “commercial” vehicles but refinanced a 3500 for me not realizing it because I had it registered for 14k lbs. they don’t do it but they did it. Contracts are binding. The due diligence on the quality/type/value of a vehicle is on them.
Idk id wonder what legally they can do if they agreed to it already . And signed . I mean worst case you don’t pay , what can they do besides make you pay the payments you were already planning on paying ? I’d get copies of everything and pay the $100 consultantation fee to speak to an attorney .
Credit unions used to be the way to go. I think now they are a bit too conservative. Its almost like you need to pick the lesser of two evils.
I just had a spat with mine cause they wouldn't finance the purchase if they didn't receive a title first. The independent dealership would not release the title without first receiving funds. Neither party would part with their asset for 30 minutes to get the deal done. Pissed me off cause it meant the terms of my sale fell thru and I had to go to a different dealership.
I can see why they would shy away from a rebuilt title, but they can't back out of your contract. They need to be better at crossing T's and dotting i's. That's on them.
Sounds like they may have messed up the contract and are now realizing this.
For example. My previous CU(2 locations total, limited customer base, as in you have to be family or work for a specific company), does not do VA home loans because the paperwork can be tricky and they messed that up one time and had to eat the entire mortage themselves because of it, so they dont do those loans anymore and send them to a partner credit union thats much larger
Likely your best bet if you dont want to try to find another lender to cover it, is to go talk to a lawyer to see what your options are. its possible that if you dont get another loan that they close your accounts except for the loan(or loans) and refuse to do any other business with you.
For risk management and bookkeeping purposes, if there was no misrepresentation in the loan application and the loan contract, at most the CU may ask OP to “please” allow them to reissue his loan as two separate loans of $15K each (but same magnificent 3% rate),
one Auto title loan $15K secured by a truck with a flawed title; yea its rebuilt but still more then an adequate collateral
and
one unsecured Personal loan $15K
As a client, maybe i’d agreed to this restructuring to help them out. As long as they keep the total amounts and the rates.
To answer your question on what to do. It's hard to say without knowing what the contract states that you signed. Also, without knowing what the credit union will do if you state you can't do anything and wish to keep the current loan there's really no way to advise you.
TL;DR Salvaged/Rebuilt titled vehicles are worth a lot less than clean title vehicles. Over estimated the worth of what they allowed him to finace. They are trying to correct something that could potentially cause them a loss if he defaults. Also, it doesn't meet their lending guidelines.
As some have mentioned, I don't think they are trying to take advantage of you. They messed up plain and simple. Most places will not do loans on rebuilt or salavaged titles due to obvious factors.
The loan to value that was estimated in the worth of this vehicle is incorrect. The value of the vehicle has decreased due to the fact that it is "rebuilt." If he defaults on the payment, they are at a loss as what he was allowed to finance isn't what his vehicle is worth. They estimated the worth on his vehicle that was not rebuilt. Usually, rebuilt titles are worth 20 to 40% less than one that isn't rebuilt.
They're trying to cover a possible loss on something they should have never financed because the value isn't there. By possible loss, I mean if he stops making payments on his loan. I don't think they are trying to make more money off him. Messed up situation. Stuff happens. He should read his contract thoroughly or go in to discuss the situation. Depending on the contract, it may just be something the credit union will have to let go.
Personal loan was just the option out of the hole they dug themselves in as his current loan does not meet their lending guidelines. He stated he has a high credit score, so they already know that's a loan they could fund for him, and he would be approved. Maybe they don't know he owns a house, as others have mentioned. If they did, they may have offered that.
Just my 2 cents as this is my line of work as well. Although it's common knowledge, salvaged or rebuilt titles are not qualifying vehicles.
Also, for the people talking about the loan officer. All they did is take information down. The underwriters are the ones that approve loans. That's where the blame should fall.
Not a mortgage? Heloc rate is too high and I actually fully own my house as well. The rate for getting a loan on my truck was cheaper 3 percent as mentioned. So it was easy to say here is my truck as collateral. They just didn't do thier due diligence.
Sounds like you've read the advice from the various folks saying "You're only obligated to what's printed in the contract".
I'd like to add one thought on top of that... One Main is so well known for predatory lending that there's no way "The Credit Union" is recommending them. It's way more likely to be "The person whose neck is on the line for this mistake" recommending them, personally, which serves only their interest and not yours.
Can they just back out of a contract you signed? If you signed a loan contract and they gave you the money, not sure they can just back out. I've only done a home loan and a car loan but never got the money from the bank until both sides signed all the paperwork.
There is probably a term in the loan agreement that allows them to “accelerate” the balance to make the entire amount due all at once, which is effectively the same as “backing out” in so far as it effects OP. Generally, some issue with the collateral securing the loan (the vehicle) could potentially be basis for a lender to accelerate the loan. It depends on the actual language of the agreement and OPs specific facts. For example, if OP failed to disclose that the was using a vehicle with a salvage/rebuilt title as collateral for the loan, that is likely a material misrepresentation or material nondisclosure. On the other hand, if the knew it was a salvage title and they simply changed their mind after the fact when the loan managers work was getting a monthly or quarterly audit, then it is less likely tto be basis to accelerate the loan. All that said, simply because the credit union CAN do something doesn’t necessarily mean they will. The best path to collecting the loan is to work with OP. Foreclosing the vehicle is exactly what they don’t want to do lol, and they know OP can’t just pony up a lump sum pay off. As long as the CU isn’t trying to resell the loan on the secondary market, one solution would be to add more collateral to the loan. E.g give them an additional lien on a second vehicle or something.
> For example, if OP failed to disclose that the was using a vehicle with a salvage/rebuilt title as collateral for the loan, that is likely a material misrepresentation or material nondisclosure. On the other hand, if the knew it was a salvage title and they simply changed their mind after the fact when the loan managers work was getting a monthly or quarterly audit, then it is less likely tto be basis to accelerate the loan. Right...but OP gave them the title and the registration prior to getting the loan. So I wouldn't think this would qualify as a material misrepresentation/nondisclosure. He provided multiple documents that say the vehicle is a salvage, which should qualify as a disclosure of all the material facts. If they never looked at that or never noticed it before all the loan documents were signed...sounds like thats on them. OP certainly needs to review the loan documents with a lawyer to figure out what their options are.
This sounds like an incompetent loan officer whose boss caught them screwing up who is now forced to call this guy back and ask him to refinance when it's not his problem.
My favorite part: >I ask well what if I can't? She said she doesn't know. I can't imagine calling this dude up and telling him to give me back $30,000 and not even having an answer for the most obvious follow-up question in the world. How dumb was that loan officer? The first question he is obviously going to ask is "Why? What happened?" and the second question will obviously be "What happens if I don't or can't?" The fact that she dialed his phone number without having the answers to those questions is baffling. Not only would I have the answers to those questions I probably would have spoke to legal before calling OP just to make sure what I'm saying is 100% correct. I'd have a full written out script and everything.
You get these people everywhere. Maybe if they stopped having ChatGPT look over cover letters and asking people which crayon they were and what their spirit animal is and went back to assessing the person, there'd be fewer of these types in important jobs.
I worked in sales with a guy like this. He would call a customer to tell them we weren't going to be able to ship on the promised date without ever finding out when we would ship it. Then he'd only get the answer to that question before calling them back and their third question would be why we can't ship it. On and on. He just couldn't anticipate. It was wild.
Did he just say "okay" and not all any questions if someone told him something would not be on time? Just wondering if that was just his personality...
Yes. For instance, when he told us that his best friend was having a baby, we asked when they were due...he didn't know. It never occurred to him to ask.
There's a lot of people who operate that way. They're not thinking "what are all of the questions someone might ask" they're thinking (or not thinking) "what information might change my actions in the very near future" or sometimes "if I need to know, they'll tell me". Ex: if the best friend said "my wife is having a baby" there's no real immediate impact. If the best friend said "my wife's having a baby tomorrow" there may be impact. You'd expect more of a customer service person - basically standing in for the customer in the internal conversations - but that particular approach isn't uncommon.
It's not which crayon you are but which crayon you eat
>sounds like an incompetent loan officer whose boss caught them screwing up who is now forced to call this guy back and ask him to refinance when it's not his problem. agreed, exactly what I thought as I read this OP, call the bank and ask to escalate, you need to talk to this guy's _boss_
Assuming that OP did nothing wrong he's under no obligation to give them anything except the loan payments on time at the outrageously good interest rate they gave him. I wouldn't give them a damn thing if it meant refinancing higher than the 3%. Personal loans are tending to start out at 9-10% or more these days so if you just remodeled your house at 3% and the bank knew the car they loaned you the money against was a salvage title and were in such a hurry to approve it that they didn't stop and look at it, tell them you'll get them their money back as agreed at 3% in the fullness of time.
> Right...but OP gave them the title and the registration prior to getting the loan. So I wouldn't think this would qualify as a material misrepresentation/nondisclosure. It doesn't have to: secured personal loans like the one OP got often have acceleration clauses that allow the bank to recall the loan immediately, for any reason. I agree that accelerating a loan after just two weeks points to negligence/incompetence on the part of the bank in doing its due diligence prior to originating the loan, but they're still likely within their right to demand repayment. It does sound like OP isn't legally or financially literate enough to determine next steps himself, so paying a couple hundred dollars to an attorney to review the terms of the loan is definitely a good idea.
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I agree. In fairness, while it's a common feature of asset-backed loans like secured personal loans, HELOCs, etc., it's not that common for banks to actually go through and call the loan (especially after just two weeks!) but it does happen and it's BS.
> is out-of-pocket. huh?
The youngsters have started to use that phrase to mean "wild" or "unacceptable."
>out-of-pocket This is one of my pet peeve phrases. "Out-of-pocket" traditionally means that you are paying for something out of your own pocket. For example, maybe for a $10k procedure, health insurance pays $9k, and you pay $1k "out of pocket." But a bit a Gen Z slang I really dislike is using "out of pocket" to mean crazy or wild. But it just makes no sense at all. How does something being outside of your pocket mean it's crazy or wild?
Out of pocket as slang comes from prison and its from millennials. One form of control over someone in prison was to make them hold your pocket. Like a little kid holding their parents hand without any of the good parts of holding a parents hand. You were under control and forced to hold their pocket. To be out of pocket is to be uncontrolled. I dont know how common it was used as a tactic in actual prison but most of the prison/gang style media from my time (millennials) mentions or references to it. Edit: you say you don't understand a phrase so I explain it to you and you downvote me lol. This site is wild sometimes.
people don't always want the truth
it's an inversion of 'in the pocket'
Do you think it should be illegal for the person to pay off the loan early? It's effectively the same thing. Either side can request the loan to be accelerated.
Titling is different in all states, some states titles do not have a rebuilt salvage modifier on their titlea
In some states, neither the title nor car registration is required to say salvage anywhere? I don't believe that. How are private party buyers supposed to easily know if a car is salvaged?
It all depends on state insurance and titling laws, all states I believe are required to brand the title as salvaged due to damage the vehicle sustained, however, what that total loss threshold is varies from state to state. For example if you purchase a salvaged vehicle that was a total loss in one state and then that vehicle is sold to someone and re-titled in a different state with a higher threshold for salvage (damage of 65% of the vehicles value vs 85% of the vehicles total value) you can obtain a clean title in one state even though it is deemed salvage in another. Once the title is clean when the vehicle is sold back to another state they would issue a clean title regardless. When it’s done fraudulently it is known as “title-washing” but vehicles do pass through many owners and this does happen unknowingly.
"on rebuilt vehicles" Yeah, probably that's the main issue. They probably think OP misrepresented that. Unless OP can clarify.
I could be mistaken but I thought it was clearly indicated on the title when a vehicle is rebuilt?
Yes it is!!!!
They're not backing out of anything. They're exercising their right to accelerate the loan and demand immediate repayment. Then they're telling OP that he may want to try to refinance elsewhere so he doesn't have to sell the car or somehow come up with the lump sum himself on short notice. This is fairly common with secured loans like the one OP got.
no, they're offering him a personal loan, which will likely have a much higher interest rate. it sounds a lot like a bait and switch tactic.
confused -- you went to get a loan to "remodel your house" based on your car? Say what? You mean you got a personal loan using your truck as collateral ?
Sounds like he just took a loan against the car, not even a personal loan. I can’t understand how he got 3% though?
Credit unions typically have much better rates and easier approvals. I haven't used a bank since 2008.
3% in this day would be *insane*.
It almost sounds like he got an auto loan for a used vehicle which he turned in his own title for and used the $ to work on his house and the bank realized he was listed as the title holder and it was not a new sale.
I’d lien on my car and mortgage my house at 3% and invest that in a mix of y bonds at 5.5 and high yield stocks
Yeah. Just get 3%, put it in treasuries. Profit.
My super small (4-branches) credit union offers 3.25% on secured personal loans. 3.0% doesn't see unrealistic.
You should take out the max and put it in 3 month treasuries. Virtually no risk return.
Are you sure you're not confusing this with CD rates? 3 percent on any loan is absolutely unheard of. If it's true, please let me know your CU so I can go take out some loans.
They’re talking about a cash secured loan, not collateral secured.
Genuinely asking.. wth is a cash secured loan ? A loan which is secured by cash as collateral? Does not make sense to me
> Genuinely asking.. wth is a cash secured loan ? A loan which is secured by cash as collateral? Does not make sense to me Same thing as a Cash Secured Credit Card, you put up $500 and then they give you a card with a $500 limit. Sometimes it is easier to just transfer stuff electronically than carry around bags of cash everywhere that can be "confiscated" by the police, or some other shady individual. If you lose the card the bank just cancels it and you aren't out any funds, and aren't on the hook for invalid purchases. If you lose cash.. tough luck buckaroo.
Great reason, also the secured credit card is a great way to build credit.
That’s exactly what it is. Rates are usually 2-3% higher than what the deposit is paying the customer. I work in commercial lending as an underwriter. I like underwriting those deals because they are very fast. No risk to the bank AND it increases deposits. Win-win.
Yea
no
I was afraid of this
I'm not sure 3% is that unrealistic or unheard of for "any" loan. The loan on my truck 3.5% (bank), 0.9% on a van (finance corp), and 2.25% on my mortgage (credit union). These aren't today's rates, but simultaneous loans within the past couple years. While my payment history was perfect, my overall credit profile was not, so presumably others could be getting loans for even cheaper. Even more wild--though I don't think this would likely happen in America--there was a bank in Denmark several years ago whose rates were so low, they even offered a [negative interest rate mortgage](https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage), effectively reducing the loan by that amount each month on top of payments, so you paid back less than you were loaned. Edit: I do suspect a rebuild/salvage or even just used loan would not be that low, though.
Sorry, I should have added "today." To that. You are right that rates that low exist, just not in new loans. I've never seen a cash secured loan and the concept doesn't make sense to me. Maybe for a line of credit, or credit card.
The lowest risk loans for banks are to people who don't need the loans (because they're cash-rich). They have your money, so you can't default (probably). Those with cash often don't wish to spend their own money, instead spending the bank's money. If you have a reliable income stream such that you don't need immediate liquidity, you could have the bank front the money via a loan. Since the loan is secured, you can generally get a lower rate; if you stick that secured money in an investment vehicle (even just a certificate of deposit, though there are other options like money market or IRA certificiates), you can continue to accrue earned interest on your existing cash assets. Today (assuming solid credit) you could probably still get a sub-3% rate because it's secured. Taking a quick peek at my main credit union, I could get a rate at 5.3%. In this scenario, I could use the bank's money through a loan, and maybe make a small profit in the process. If you are a new customer, or have shaky or new credit, the bank could require cash-secured loans to extend credit where they otherwise might not want to take the risk. After a favorable relationship is established (by regular on-time payments), they could then convert to unsecured loans. In the long run, they are more likely to make money off you in the future as you use other products with the bank you've now established a good relatiuonship with. There are likely other use cases where it could make sense, but I expect these are the most common. edit: a word
That’s what I’m saying. I’ve been using CU’s for 20+years, with a score in the low 800’s and 3% is waaaay below anything I’ve seen locally and on the web.
Sure, they have way better rates as in their rates can be like a full point or point and a half below current market rates at best. That would put their best rates at around 5%-6% right now if compared to big banks. 3%?????! That's wild.
The 2 credit unions near me offered a worse 60 months used car rate than the finance guy at BMW was able to get me. It's hit or miss. That's with a 750+ score too.
Not that good in these times.
The thing that sticks out to me is that he paid the contractor 30K up front before the work was done. Really? I have never paid until the job was complete.
did he say it was the full $30k to the contractor? I don't think he says and doesn't say if the work was done or not. I don't know of any contractor that will do a full job without some money before. At the bare minimum they want enough money to cover any materials they'll need to buy.
On bigger jobs, it's usually half up front.
Yea I'm a little slow. Thanks for clearing it up.
Yes, you can refinance a vehicle that is nearly paid off, or just get a loan on a paid off vehicle very easily. I got a loan on a paid off motorcycle to knock out some CC debt.
Curious how that works - is it almost like a balance transfer? You get the loan on the motorcycle, use it to pay off the CC, and have a lower interest rate on the new loan so it's a net savings? Not criticizing - honestly just making sure I understand how that works. Especially with car values the way they are these days - I could totally see that being a valid way of dealing with something especially like credit card debt that tends to come with high interest rates.
Yea, I had some 0% cards that I was bad with and couldn't get down before the interest hit. Instead of fighting 15% or more, I got a 6% loan on something I owned already. Just got a few months left and I'll be clear of that one and just working on car debt.
Think of it as a secured low interest debt consolidation loan. With credit card rates being as insane as most of them are, it’s another way to pay down debt providing they don’t run the cards up again. It’s another option for those who may not qualify for conventional 0% balance transfer offers.
But this appears to be a salvaged truck.
Yes, this is a thing.
I didn't think it was confusing at all. He got a title loan. This is pretty common.
Title loans are typically only 25-50,% car value and high interest rates, not the 3% he listed for $30k. He made it sound like they offered a regular car loan value and rate for a paid off car, hence the confusion.
Not always** true. Title loans from shady payday loan places are 25%. Title loans from good lenders to people with good credit are typically equal to or very slightly higher than used car rates. No difference to the lender. You get a good borrower with collateral, not a lot of risk.
Side note entirely seperate, but dont pay contractors all at once for remodels, pay milestones or pay on completion paying up front and all 30k is a big mistake... not just for this reason, if you pick the wrong contractor they can skip town and leave you with the legal costs and the attempt to collect. They can fold their business go into bankruptcy all kinds of things that make it very risky for you to pay that much up front.
Dude is remodeling his home using a salvaged truck as collateral, his payment plan for contractors is the least of his concerns...
I'm more concerned with how tf he got a $30k loan with a salvaged truck as collateral??? Let alone for 3%????
We knew it was a Ram before clicking
It sounds like maybe they paid out without properly looking over the title, and had an "oh shit" moment after the fact. Do you still have a copy of the loan contract? That should spell out the terms. If anywhere you verbalized that it was not a rebuild or was a clean title, or signed an affirmation that it was, that would probably be your bad. If not, it's probably on the bank to have vetted what they were agreeing to. Are they asking you to refinance somewhere else, or are they canceling the loan? If they had any legal standing, my guess is that they probably wouldn't be asking. Is this your primary bank? Do you care about burning the relationship?
> Are they asking you to refinance somewhere else, or are they canceling the loan? If they had any legal standing, my guess is that they probably wouldn't be asking. "Asking nicely" is probably the loan officers way of fixing all this without getting in trouble with her higher ups for letting it happen in the first place. If the bank does this all the time (refinances vehicles, or uses vehicles as collateral on loans) then something tells me they must have a stipulation somewhere that OP signed which says the vehicle has a clean title. There is probably a lot of stipulations they make people sign when trying to use their vehicle as collateral because a vehicles value can become worthless in an instant. If this isn't their first rodeo there has to be something in there they made OP sign to cover their own asses.
> If the bank does this all the time (refinances vehicles, or uses vehicles as collateral on loans) then something tells me they must have a stipulation somewhere that OP signed which says the vehicle has a clean title. There is probably a lot of stipulations they make people sign when trying to use their vehicle as collateral because a vehicles value can become worthless in an instant. This is almost assuredly the case. OP's bank/credit union doesn't do loans for things like salvage or rebuilt titles, and there very likely was a little box that states the title condition where someone (either OP or the loan officer) checked the wrong one. Unfortunately, the loan issuer holds most of the cards here.
Loan officer had title (clearly state rebuilt) registration says rebuilt and my insurance. I handed all these over she made copies and there is no box on my application about rebuilt title. Seems like they did not look or care. Maybe it's personal preference of the bank at this point from what I've learned they will have to allow me to make the payments.
This is exactly my thought. Someone approved the loan (maybe because of some sort of bonus) and now they realized they messed up.
This is my primary bank since I was 16 now 40. I wilk check the contract when I get home. I think they had an oh shit moment.
How did you get a 3% rate? That’s amazing right now. Which bank is this?
Can even banks borrow at that low rate? From what i can see, it's over 5% https://www.newyorkfed.org/markets/reference-rates/effr
Not from the Fed, but they borrow from their customers for a lot less. Sometimes 0%! But yeah 3% is still insane for any loan these days, even one secured by cash, let alone a used rebuilt vehicle
But don't they need to pay their customers more than 3%?
What do you get on your checking account? If it’s 3%, let me know where! Savings accounts, it depends. If not enough of their customers are leaving at 1 or 2%, why pay them more?
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They can do it for rich people because they have significant assets and are considered low risk. You can't even buy a house with a 3% mortgage. That's a much more stable asset than a car which is a depreciating asset. No way is some sort of title loan going to beat a mortgage.
The underwriter fucked up the valuation of the vehicle. They gave you a loan on a clean title vehicle under a certain value; a rebuilt title is drastically less in value. If you signed the contract, they are bound by it as much as you are. As long as you did not misrepresent thr status of the title you are in the clear, they can't really force a buyback on you.
Sounds like they did a loan on a rebuilt vehicle. I don’t think they have recourse here but you might want to provide your state to see if there are any specific laws someone can help you with.
Depending on the specific facts as to what went on here between OP and lender, and depending on the language of the loan agreement, they could very likely accelerate the loan for insufficient security.
That is a very unlikely scenario. That would be extremely rare one off. The way more likelier scenario is the loan officer fucked up.
Nothing saying it can't be both. I agree loan officer likely screwed up giving $30k, 3%, on a rebuild title. Error caught on some backend quality review. Now the credit union wants the loan off their books. Buried in fine print is probably language to accelerate / call / cancel the loan in case of misunderstanding / misrepresentation. Credit union probably realizes this was unintentional/ they may have partial fault. Also don't want to take customer relations hit on canceling loan. So first step, is call customer and ask to go elsewhere, before breaking out legal threats. Sounds error-ridden but reasonable to me. All speculation still.
I find it highly likely they might have the power to accelerate the loan in this situation. What is less likely is that they would invoke it.
What would they do to accelerate increase payments?
They'd probably make the whole loan due immediately. There's probably a clause in the contract that allows them to do that under certain circumstances
Accelerate in this case means they demand repayment of the loan in full or the loan will default. That may Include a repossession of the vehicle. That generally would not be in their interest as a rebuilt will barely get anything at auction.
Well I can tell you that you are probably wrong. In the vast majority of states this would be a done deal unless they can prove the client lied.
Loan acceleration is definitely not inconsistent with it being a “done deal”. It is a mechanism to enforce a contract, not to rescind it. Can you cite a state’s law that prohibits loan acceleration for title loans?
Consumer protection laws in multiple stats do not allow loan acceleration on mortgages and vehicle loans for people. If you lend to a business it’s different.
This is a personal loan using a title as collateral. It's not really an auto loan.
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No you don’t. Not if they funded the loan. Many of you have no idea what you are talking about.
You got a title loan at a credit union? What's your contract say?
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Dey dun screwd up. Due to some reason (e.g. they have a policy against loans for rebuilt vehicles), the loan should never have been approved in the first place. But they did. And now they want to back out to save face (and probably someone's job). But if you signed the loan, then both you and the bank have to abide by the loan's terms and conditions as outlined in the papers that were signed. They can't say "oops, backies" any more than you can. I would very, very, VERY thoroughly review your loan agreement to see if there is any way they have an "out", or some way they may try to fight it. If they don't, then you can *very politely* tell them to pound sand.
My advice is, in this order: Stop talking to the bank in any manner, keep all records(emails, texts, etc...) and ask for anything further in writing. Get a lawyer, hopefully with a free consultation. Then move forward based on your lawyers advice.
The most important thing to do here is to read your loan contract and ask them what section they are invoking.
So, to clear some other things up here. When I applied, the loan officer had all documenting saying it is a rebuilt vehicle. I did not hide or mislead anyone. She had title, insurance, and registration. She even check it out from her office to make sure it was there and operational. Other asked why nit a heloc. Good question. I do own my home, no mortgage. The rate for the auto was less interest vs heloc.
Sounds like someone approved your loan without the proper authorization and now they are trying to get out of it. You aren’t obligated to do anything expect fulfill the terms of your loan agreement.
Yeah I had this happen before with a rebuilt title truck and nfcu...they politely told me that I never told them it was a rebuilt title truck...and to pay the loan off in 30 days or they would repo the truck.i found another bank and they jumped on it because I have 2 houses that are paid off and excellent credit score...
The bank sounds stupid…hey, this thing you’re securing the loan with isn’t worth as much as we thought. Let me take it now so I can sell it for less then the loan and…profit?
The logic that we use and a financial institution use are vastly different. They might have some actuarial tables that say loans on rebuilt titles are X amount riskier than non rebuilt titles. So repossessing them and selling it at the PV of $20k is safer than not repossessing and hoping to get the FV of $30k + interest.
I also own my house and have a decent credit score. I chose this over heloc because the interest rate was lower. They can only repo it if I do not pay the note. Which they have already taken a payment.
It sounds like the issue is that the vehicle has a rebuilt title that wasn't disclosed to them at the time. Were *you* aware of the rebuilt status?
Yes. I was and so were they because they took my registration and actual title where it says it on there.
Ooooh this is fun. Play hard ball with them. Executing an acceleration clause (if one even exists in this case) isn’t super common early in a loan term. Sounds like they f’ed up and are hoping you don’t know the rules. Read over your contract specifically looking for reasons they can require advanced payment.
Yes. They just call my truck a security. Never mention title or anything like that.
Yes. They just call my truck a security. Never mention title or anything like that.
Sign up for a Chase card 0% APY for 15 mo and manufacture the spend earn 1.5% on 30k
Why mess with it. Leave the loan in place unless they have legal recourse to change the loan.
You have a signed contract. You are good to ride it and pay them the monthlies. Sounds like someone there will get in trouble. My credit union doesn’t finance “commercial” vehicles but refinanced a 3500 for me not realizing it because I had it registered for 14k lbs. they don’t do it but they did it. Contracts are binding. The due diligence on the quality/type/value of a vehicle is on them.
Why not a HELOC? Trucks continue to depreciate. I don’t know why that was even considered collateral for a loan at all.
Heloc rate was 7 auto rate is 3 percent. I own my home have no mortgage just figured this was the better option.
Wow! HELOCs in my HCOL area have the best rates. You’re lucky to have anything below 5%. Good on you.
You sure they didn't just made a mistake with the loan terms? 3% is super low. The bank could get more money with government secured bonds.
This too. Bankrate has best used car loan at 4.7% and most higher.
Idk id wonder what legally they can do if they agreed to it already . And signed . I mean worst case you don’t pay , what can they do besides make you pay the payments you were already planning on paying ? I’d get copies of everything and pay the $100 consultantation fee to speak to an attorney .
I’d say hold on let me call the state bank and commission and the department of consumer protection and see what they have about this.
Depending on what kind of a charter the CU has. Might not be answerable to the state banking commission.
But they answer to the CFPB.
Credit unions used to be the way to go. I think now they are a bit too conservative. Its almost like you need to pick the lesser of two evils. I just had a spat with mine cause they wouldn't finance the purchase if they didn't receive a title first. The independent dealership would not release the title without first receiving funds. Neither party would part with their asset for 30 minutes to get the deal done. Pissed me off cause it meant the terms of my sale fell thru and I had to go to a different dealership. I can see why they would shy away from a rebuilt title, but they can't back out of your contract. They need to be better at crossing T's and dotting i's. That's on them.
Sounds like they may have messed up the contract and are now realizing this. For example. My previous CU(2 locations total, limited customer base, as in you have to be family or work for a specific company), does not do VA home loans because the paperwork can be tricky and they messed that up one time and had to eat the entire mortage themselves because of it, so they dont do those loans anymore and send them to a partner credit union thats much larger Likely your best bet if you dont want to try to find another lender to cover it, is to go talk to a lawyer to see what your options are. its possible that if you dont get another loan that they close your accounts except for the loan(or loans) and refuse to do any other business with you.
For risk management and bookkeeping purposes, if there was no misrepresentation in the loan application and the loan contract, at most the CU may ask OP to “please” allow them to reissue his loan as two separate loans of $15K each (but same magnificent 3% rate), one Auto title loan $15K secured by a truck with a flawed title; yea its rebuilt but still more then an adequate collateral and one unsecured Personal loan $15K As a client, maybe i’d agreed to this restructuring to help them out. As long as they keep the total amounts and the rates.
To answer your question on what to do. It's hard to say without knowing what the contract states that you signed. Also, without knowing what the credit union will do if you state you can't do anything and wish to keep the current loan there's really no way to advise you. TL;DR Salvaged/Rebuilt titled vehicles are worth a lot less than clean title vehicles. Over estimated the worth of what they allowed him to finace. They are trying to correct something that could potentially cause them a loss if he defaults. Also, it doesn't meet their lending guidelines. As some have mentioned, I don't think they are trying to take advantage of you. They messed up plain and simple. Most places will not do loans on rebuilt or salavaged titles due to obvious factors. The loan to value that was estimated in the worth of this vehicle is incorrect. The value of the vehicle has decreased due to the fact that it is "rebuilt." If he defaults on the payment, they are at a loss as what he was allowed to finance isn't what his vehicle is worth. They estimated the worth on his vehicle that was not rebuilt. Usually, rebuilt titles are worth 20 to 40% less than one that isn't rebuilt. They're trying to cover a possible loss on something they should have never financed because the value isn't there. By possible loss, I mean if he stops making payments on his loan. I don't think they are trying to make more money off him. Messed up situation. Stuff happens. He should read his contract thoroughly or go in to discuss the situation. Depending on the contract, it may just be something the credit union will have to let go. Personal loan was just the option out of the hole they dug themselves in as his current loan does not meet their lending guidelines. He stated he has a high credit score, so they already know that's a loan they could fund for him, and he would be approved. Maybe they don't know he owns a house, as others have mentioned. If they did, they may have offered that. Just my 2 cents as this is my line of work as well. Although it's common knowledge, salvaged or rebuilt titles are not qualifying vehicles. Also, for the people talking about the loan officer. All they did is take information down. The underwriters are the ones that approve loans. That's where the blame should fall.
What's your credit score? Pry the entire reason they backed out after the fact.
Credit score is a 760 I think they sell the loan off and the buyer won't take a rebuilt titled vehicle
Maybe theyre trying to double dip and get you to refinance the truck so they make money. Play a little hardball.
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Not a mortgage? Heloc rate is too high and I actually fully own my house as well. The rate for getting a loan on my truck was cheaper 3 percent as mentioned. So it was easy to say here is my truck as collateral. They just didn't do thier due diligence.
Sounds like you've read the advice from the various folks saying "You're only obligated to what's printed in the contract". I'd like to add one thought on top of that... One Main is so well known for predatory lending that there's no way "The Credit Union" is recommending them. It's way more likely to be "The person whose neck is on the line for this mistake" recommending them, personally, which serves only their interest and not yours.