My 21 yr. Old son, wanting to show his "old man" he's grown up enough to get a car loan on his own. He went to Citifinancial Services in Cumming GA to borrow $5,000. Well, they charged him 26.99%, tacked-on 869.92 in points/fees, and charged him $2,020.75 for insurance that would only cover the balance owed on the car.
I pointed out to my son, he already had insurance on the car, and this wasn't necessary, he went and showed them his proof of insurance, they told him they would cancel the policy, but his payments wouldn't change, when it clearly states on the contract his payments would be reduced from $280.84 to $152.65 upon proof of insurance. So, on a $5,000 loan, he will have paid $12,890.83 in 60 months of payments. Granted he's not the brighest blub in the pack, but to take this kind of advantage of someone is just criminal.
I'll help him secure a loan somewhere else, but I'm sure this will get rather nasty before it's all over. Just a warning to other parents to review closely your children's loans and warn them of all the sharks out there. What they done is probably not illegal, but sure is immoral. What a sham. No wonder our youth are so much in debt.
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