I'm no financial wiz, but I was contacted by WFF to see if I could use a loan. They call all the time, over and over. This time I said OK what do you have? I went in to the Burbank office and they said they sould give me a loan for $11,400 if I re-fi'ed a car with them and they over-valued the car to create phantom equity. I don't love GMAC so I said I would look at the numbers. HOLY SHIT!!! To get the $11,400 they want anywhere from $510 per month over 6.6 years to $752 per month over 3 years. HERE'S THE TRUTH: Using the APR calculators at FairIssac, LendingTree and BankRate.com, and they all agreed, the $510 deal over 5.5 years garnered $22,260 in interest (just interest) and equated to a cool 50% interest rate. The $752 deal repayed over 3 years equated to (bend over) 68.5%. Quite usury, don't you think? When I inquired about the loans interest rate, they responded "we don't like to think in terms of interest rate". I cound see why. Even though they would fake the secured vehicles value, it would have been effectively a secured loan. I recommend if contacted by WFF to simply hang up, or in the alternative, run like hell. I'm not even sure it's legal in California. Heres a better picture:
Wells fargo financial offer
Loan amount: $11,400.00
Loan interest
pymt duration (mo.) interest repay rate
510.00 66 (5.5 yrs) 22,260.00 33,660.00 50.00%
752.00 36 (3 yrs) 15,672.00 27,072.00 68.50%
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