As you might know, I recently finalized my new auto-refi loan. While the loan was finalized, I made an additional payment to my old lender. However, the new loan-amount didn't change and the broker adjusted the pay-off down to what I owed after I made the payment.
I was under the impression that I should get a partial refund from my loan broker. They received about $750 more from the new lender than they paid to the old one. I do believe that is a lot in "fees". In addition to that, fees are not mentioned in my loan paperwork or my application. Aren't they required by law to disclose these fees (if any) upfront?
Here's the conversation I had with my CSR:
Hi xxxx,
I hope you are doing well! Meanwhile, my previous loan with my prior lender showed up online as paid out so I gave them a call to check out how much they received as pay-off. I was told that the pay-off amount was about $20,780 and that they were overpaid by about $30. So roughly, they received about $20,815 as payoff.
My new loan, however, is $21,560 which leaves a difference of about $745.
I think the fees for the new loan are $450 (loan-amount of $21,560 minus $21,400 which was the initial pay-off amount before I made the final payment plus $290 which were initially planned to be charged to my CC-account I provided).......sooooo...since my previous lender received $21,560 from my new lender, am I assuming correctly that I can expect to receive a check from you guys for about $295?
Thank you in advance for your message!
Regards,
IBroke
He replied:
IBroke,
There is NO extra money...That is why I never charged your card.
Thanks,
xxxx
I replied:
xxxx,
That doesn't make any sense.
You wanted to charge my card $290. I, however, made an additional payment to my old lender in the amount of $550. Since my additional payment clearly exceeded the amount you wanted to charge to my card, there must be money left because this additional money was neither paid to my old lender nor credited to my new loan. So what happened to it?
There is a difference of about $745 between what you received from the new lender and what you paid to my old lender. No matter how I turn the numbers - based on the initial quotes, there MUST be money left. Additional funds simply do not vanish within 7 days. Granted, you didn't charge my credit card in the amount of $290 - but in return, you paid $580 LESS to to my old lender than initially planned - due to the additional payment I made.
Honestly, I never understood why I would have to make a credit-card payment in the first place. You stated that this would be necessary due to the LTV-ratio. However, this value obviously didn't play a role when I should purchase an additional warranty. With that warranty, the LTV-ratio would have been much worse. I know exactly that the sale of these warranties are commission-based and that you have to make a living as well - but when it comes to the claim that the numbers all of a sudden "match up +/-0" after I made this payment and without the adjustment of any other factors that would make up for that, my "alarm-bells" are going off.
If you are still convinced that there is no extra money, I request a detailed break up on how, when and to whom my new loan in the amount of $21,560 was distributed. A copy of your policies regarding your customary loan closing-fees would be helpful as well so that I can double-check that in writing with your office. Unless fees are randomly set by your company, it is virtually impossible that everything turned out +/-0. I'd also like to mention that there is no fee mentioned in my paperwork (lack of disclosure of fees) so I have my doubts that it is even legal to charge any in the first place. I would have accepted the previously quoted fee of$450 - no questions asked. But a sudden increase to $745 without any prior disclosure is very questionable and will result in further investigative action on my end. Hopefully, this can be avoided.
Regards,
IBroke
So what do you guys think? Is this guy trying to get some $$ into his own pocket? Is it legal to collect and/or even increase fees without written disclosure?
I was under the impression that I should get a partial refund from my loan broker. They received about $750 more from the new lender than they paid to the old one. I do believe that is a lot in "fees". In addition to that, fees are not mentioned in my loan paperwork or my application. Aren't they required by law to disclose these fees (if any) upfront?
Here's the conversation I had with my CSR:
Hi xxxx,
I hope you are doing well! Meanwhile, my previous loan with my prior lender showed up online as paid out so I gave them a call to check out how much they received as pay-off. I was told that the pay-off amount was about $20,780 and that they were overpaid by about $30. So roughly, they received about $20,815 as payoff.
My new loan, however, is $21,560 which leaves a difference of about $745.
I think the fees for the new loan are $450 (loan-amount of $21,560 minus $21,400 which was the initial pay-off amount before I made the final payment plus $290 which were initially planned to be charged to my CC-account I provided).......sooooo...since my previous lender received $21,560 from my new lender, am I assuming correctly that I can expect to receive a check from you guys for about $295?
Thank you in advance for your message!
Regards,
IBroke
He replied:
IBroke,
There is NO extra money...That is why I never charged your card.
Thanks,
xxxx
I replied:
xxxx,
That doesn't make any sense.
You wanted to charge my card $290. I, however, made an additional payment to my old lender in the amount of $550. Since my additional payment clearly exceeded the amount you wanted to charge to my card, there must be money left because this additional money was neither paid to my old lender nor credited to my new loan. So what happened to it?
There is a difference of about $745 between what you received from the new lender and what you paid to my old lender. No matter how I turn the numbers - based on the initial quotes, there MUST be money left. Additional funds simply do not vanish within 7 days. Granted, you didn't charge my credit card in the amount of $290 - but in return, you paid $580 LESS to to my old lender than initially planned - due to the additional payment I made.
Honestly, I never understood why I would have to make a credit-card payment in the first place. You stated that this would be necessary due to the LTV-ratio. However, this value obviously didn't play a role when I should purchase an additional warranty. With that warranty, the LTV-ratio would have been much worse. I know exactly that the sale of these warranties are commission-based and that you have to make a living as well - but when it comes to the claim that the numbers all of a sudden "match up +/-0" after I made this payment and without the adjustment of any other factors that would make up for that, my "alarm-bells" are going off.
If you are still convinced that there is no extra money, I request a detailed break up on how, when and to whom my new loan in the amount of $21,560 was distributed. A copy of your policies regarding your customary loan closing-fees would be helpful as well so that I can double-check that in writing with your office. Unless fees are randomly set by your company, it is virtually impossible that everything turned out +/-0. I'd also like to mention that there is no fee mentioned in my paperwork (lack of disclosure of fees) so I have my doubts that it is even legal to charge any in the first place. I would have accepted the previously quoted fee of$450 - no questions asked. But a sudden increase to $745 without any prior disclosure is very questionable and will result in further investigative action on my end. Hopefully, this can be avoided.
Regards,
IBroke
So what do you guys think? Is this guy trying to get some $$ into his own pocket? Is it legal to collect and/or even increase fees without written disclosure?
Bankruptcy Wizard
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