Conference 7.286::dcu

    
    When I got my auto loan, it was explained to me that the weekly
    paycheck deductions were escrowed towards the next month's payment,
    hence the lower loan rate for payroll deduction.
    
    Also, payments for loans (well, at least for my auto loan; don't know
    about the share loans) are accepted at any time - i.e., no pre-payment
    penalty.
    
    You might want to work the numbers with them to find out if your
    weekly payments are 1/4 of the monthly, or 3/13, which would explain
    the 48 versus 44 month duration.
    
    

They write up the loan as 48 months assuming monthly payments.  The weekly
deductions are escrowed, as noted; the payment being really made only monthly.

If you actually make weekly payments, at some point earlier than the original
due date the loan will be paid off.  But DCU isn't going to calculate that for
you in advance as they can only go by the payment schedule you agreed to.
As you determine the loan is near payoff, you can ask them to recalculate the
payoff amount (a good amortization program, such as Quicken, can do this
for you.)

				Steve

	It must depend on the loan as to whether or not is is applied weekly or
monthly.

	I took out a used auto loan in May and have payroll deduction and the
payments are applied weekly.  I am sure of this because I am looking at my
September statement right now and it shows the payments applied on a weekly
basis.

jp

Does it show payments applied weekly or payments deducted weekly?  If "applied"
they would show up in the section for your loan.

				Steve

> Does it show payments applied weekly or payments deducted weekly?
> If "applied" they would show up in the section for your loan.

    They use to do weekly deductions to an escrow account and then
    apply the amount once a month.

    But... it looks like they now apply weekly payments for some,
    maybe all loans.  I took out a new car loan over a year ago and
    this is how it works. My monthly statement does show weekly
    payments and shows the amount applied to the principal and interest
    EACH week.

    It really to our benefit, you end up paying off the loan sooner
    and with less interest. 

    Charly

	Like .5, my payments are applied weekly, with a breakdown of both
principal and finance charge amounts.

Good - that is indeed to your benefit.

	Steve

        For line-of-credit loans (home equity credit line, VISA,
        etc.) it seems that DCU still doesn't credit weekly
        deductions weekly.  While it may make little sense to have a
        standing deduction and payment to a new, unused line of
        credit, if one has a sizable balance it would be desirable to
        make weekly payments.

        Bob

Re: .8,

I asked the DCU about your request. Weekly deductions 
certainly does reduce the payment length and is to 
the members' benefit.

For VISA and home equity credit lines, there's no
fixed amount that the DCU can deduct weekly. The payment due
varies by the outstanding balance.

For the Fixed Home Equity loans (i.e. borrow a fixed amount
payable over a fixed period), the request does make sense; 
DCU will look into it.

Gim

re Note 955.9 by SLOAN::HOM:

> For VISA and home equity credit lines, there's no
> fixed amount that the DCU can deduct weekly. The payment due
> varies by the outstanding balance.

        Their thinking is too restricted.

        I'm not asking them to deduct the minimum payment due (or
        some weekly equivalent), I'm asking them to allow me to
        designate a fixed amount (of my choosing) to be deducted
        weekly and applied weekly towards my loan account.

        As it always is, I would still be responsible for making sure
        that the total received by the due date equals AT LEAST the
        minimum payment due.  I could do this either by making sure
        that the amount deducted equals or exceeds the minimum due,
        or by making an additional manual transfer or deposit to
        cover the balance due.

        Under today's policies, the best automatic procedure I can
        get is to have the amount deduced weekly and placed in a
        share account, and the minimum due then withdrawn monthly. 
        This has the problem that it doesn't allow me to get a
        payment credited weekly, without manual intervention, and it
        doesn't allow me to make an automatic payment greater than
        the minimum due.

        The request does make sense, if you realize what is being
        requested.

        Bob

RE: 10,

It's a good idea. I'll discuss this with Tom Ryan, the
operations manager.

FYI - I was really impressed with the feedback from the
DCU. They are really trying to be customer focused and in
this case, at the expense, in the short term, of interest
income.

Gim

Just an update to the original note:

Since writing the note, I received several calls from Tom Ryan from DCU.  He
was extrememly concerned about the 'bad' information that I received and was
anxious to make sure I had the correct information.

Basically, the DCU calculated what my monthly payments would be and divided
that amount by 4.  This is what is deducted and applied weekly.  Since I will
be making what amounts to an extra monthly payment each year and reducing the
principal amount weekly instead of monthly, my loan will be paid off at least 4
months earlier (on a 4 year loan).  I can switch to monthly payments at any time.

I felt much better after talking to him.  I'm convinced they are really sincere
about making sure their customers are satisfied.  And thanks for all the replies
posted here!!

Tom Ryan, the VP of Operations called to let me
know that the DCU is seriously looking at the suggestions made
in this note string particularly from note .10 by Bob Fleischer.

Stay tuned.

Gim

RE: Note 955.13 by SLOAN::HOM

>Tom Ryan, the VP of Operations called to let me
>know that the DCU is seriously looking at the suggestions made
>in this note string particularly from note .10 by Bob Fleischer.

Thanks for sharing this with us!  It is good to know that management
is working hard to make things betters.  It is SUCH a pleasent change
as compared to what was present in the past BOD and management (Chuck
and company).

	-mark

Another update.  

The DCU is doing some final verification on weekly deductions before
announcing availability of the program. Weekly deductions
will be available (this is from memory) for Advantage Credit line,
VISA and home equity.

The DCU has implemented exactly (because it was practical and made
sense) what was stated in .10.

>   I'm not asking them to deduct the minimum payment due (or
>   some weekly equivalent), I'm asking them to allow me to
>   designate a fixed amount (of my choosing) to be deducted
>   weekly and applied weekly towards my loan account.
>   
>   As it always is, I would still be responsible for making sure
>   that the total received by the due date equals AT LEAST the
>   minimum payment due.  I could do this either by making sure
>   that the amount deducted equals or exceeds the minimum due,
>   or by making an additional manual transfer or deposit to
>   cover the balance due.

The one caveat that the DCU wanted to stress was that the 

	member will still be responsible for making sure
	------------------------------------------------
	that the total received by the due date equals AT LEAST the
	-----------------------------------------------------------
	minimum payment due. 
	--------------------

If you would like to try out weekly deductions, contact me via email
and I'll make your the DCU gets in touch with you.

Gim