I receive your newsletter and love
it. Very helpful!
Recently, I have taken out a debt
consolidation loan. The time from application for the loan to closing on the
loan was 3 months. The consolidation loan included preprinted checks
made out to each of my creditors (5) with the total balance owed at
the application time.
The problem was that during the 3
months before closing, I had been paying the minimum payment. So, when
the loan closed and the checks were issued, the check amount was
higher than the actual balance.
I have received credit checks from
all but one of the creditors for the difference. I have sent
2 letters to the customer service address requesting the account be
closed and a check be issued.
It has been 2 months with no
response from the creditor. I have received 2 statements showing the
credit. What is the next step to getting the money back?
They owe me $179.00; too much money
to walk away from. What is very upsetting to me is that, if I owed
them money, I would have to pay late fees, interest and get marks on
my credit report.
Thanks for writing! I love your
They should be required to pay you a
late fee! I doubt that will ever happen, but maybe someday a law
can be added to the books that would require late fees due the
consumer in this situation.
I certainly have been in similar
situations. By making an overpayment to any creditor, you create a
credit balance. That credit balance must be returned to you. You
asked for a check twice, and they haven't sent it.
Here's what I would do...
1) I'd call
and speak to a customer service rep to see what's going on with the
check. Maybe they sent it and the "check is in the mail."
2) If I still didn't receive the
check, I'd use the credit card for my normal shopping, groceries,
etc. Once I spent $179, I'd stop. If I went over $179, I'd pay them
the difference and never use the card again.
3) Here's a technique you can try if
you don't mind more hassle. I would do it because I'm also
interested in finding out the results of creative financial
techniques and telling everyone what happened. If I had credit
checks issued on that credit line, I'd write myself a check for $179
and deposit it into my personal checking account.
There a few
possible complications with this plan: The first is if they have already sent you
a check for $179, then it would be a cash advance and subject to cash
The second complication would be that
even if they haven't issued you the check, they may
still try to charge you a cash advance fee, even though it's your
money! In fact, I bet they would charge you the fee. After writing
the check, if I received a statement that the $179 brings my balance
to zero, but I had a balance because they charged me a cash advance
fee, I'd call the bank and ask to have the fee waived. They'd
probably argue and say it's still a cash advance to which I would
reply, "It's not an 'advance' against my credit line because
it's not a loan, it's my own money!" If they still didn't waive
the fee, I'd formally dispute the charge. I don't know if you want to
make a mountain out of a molehill; however, it is an option.
4) Same as (3) but use the card at an
ATM or do a cash-advance at a bank.
Please let me know the outcome of