Conference 7.286::dcu

28.0. "a new car loan" by COOKIE::DOUCETTE (Chuck Doucette) Wed May 13 1987 18:12

	I am in the middle of a bad experience with DCU that I thought
I'd share with the people of this notes file.

	I am trying to refinance a new car loan. Originally my rate was 12.99%
(almost 13% - i.e. outrageous) through GECC (General Electric Credit
Corporation). DCU offers 9.00% for a 3 year payoff (which is the only reason I
put up with all of the hassle I've been through).

	I applied for the loan a few times (twice for just me, once w/ mom
as a cosigner, finally w/ dad as a cosigner). I find it hard to believe
that they didn't have any faith in my stability as an employee at Digital
(as if I would get laid off). I won't go into their reasons for declining
me. Let it suffice to say that I know many others who got their first
car loan from another bank with no trouble.

	Finally, after my father agreed to cosign, they have accepted
my application and have given me the loan. Now, if only we could
resolve the payoff to GECC (my previous creditor). I was told
to stop making payments to GECC because if I made 6 payments,
I would no longer be eligible for a new car loan. A used car is
defined as a car w/ 6 payments or more (>= 6 months old) and
at least 7500 miles. While I waited for DCU to finish processing
my application and produce a check, GECC sent my account
to the collection department. In the last week I received
a certified letter warning me that I was almost in default of the loan.
DCU finally mailed my payoff to GECC a over a week ago.
GECC still hasn't received it. If they do not receive it by Friday,
DCU will stop payment on the check and start again.
I found out something today that I couldn't believe. They
sent my check via US mail, not certified or registered.
i.e. it could be lost or stolen, and DCU would be out 12K;
or, it might be addressed improperly, or never be picked up.
DCU would never know.

	What do you bet that a) I'll be charged a stop payment fee,
and b) I'll pay the cost of federal expressing the new checks
if it doesn't get there soon?

	I am anxious to fill out the recent poll asking about DCU
service (they'll get very bad marks).

Chuck

    
    When I bought my new car 3 yrs ago, I asked around my group where
    I should go for a loan. Most of the people recommended Worker's
    Credit Union. I checked out DCU and my bank for rates and finally
    settled on Worker's. It has been the most painless loan ever. They
    took the application over the phone and wanted me to sign it either
    by mail or in person. (I did it in person). The check was ready
    within a few days. I had to go in person produce my driver's license
    to pick it up. I recommended it to a friend a few years later. It
    is still the most painless experience.
                                          

    Don't count on your car loan to stay at 9.00% for very long.  Got my
    loan last Nov. and just got a notice yesterday that the rate is going up
    to 9.50% starting in Sept.


    George

    Are all of DCU's rates variable?  Their rates don't sound as good
    as I thought if they are all variable rates.
    

    The rates are variable, but your monthly payment stays the same.
    They change the remaining number of payments, rather than the amount
    of each payment, when there's a rate change.
    
    My 90% new car loan just went from 10.25% to 10.75%.  Did all of
    the loans get bumped up by 1/2 a percentage point?
    
    Did the initial rates for new car loans (i.e., the rate that you
    are quoted when you sign on the dotted line) also increase?