- Report: #279176
Complaint Review: Citi Financial - Carpentersville Illinois
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Author Confirmed
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Citi Financial
142 S. Western Ave. Carpentersville, 60110 Illinois, U.S.A.
Phone:
847-836-0338
Web:
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Citi Financial Citi Financial Screws it's customers with the "rule of 78's" Carpentersville Illinois
I requested a short term loan (gap loan) to cover my wifes medical expenses until my insurance check arrived. I borrowed $10,000.00 at 23% interest. Citi Financial broke the payments out for 60 months equaling $281.85/month payments. I made 5 payments of $281.85 for five months, sometimes $295 when I was late. I made a payment each month per the agreement.
When my insurance check arrived, I learned the payoff balance was MORE than what I borrowed ($10,035.00). A 5 month loan cost me over $1485.00 (36% interest per year). I'm no lawyer, but I believe that violates state usury laws. When I asked how it is possible to make 5 payments and owe more than I borrowed, they said my payments where late and they calculated interest using the rule of 78's.
The worst possible loan for short term financing considering its not what I asked for. I asked for a simple short term line of credit. The contract does say payments are calculated using the rule of 78's and even gives a detailed and very confusing equation on how it is calculated. It is my contension that Citi Financial mislead me and no-one in their right mind would willlingly agree to a loan of this type.
I could have crossed the parking lot and pickup a 28% line of credit at Fifth-Third Bank, but I chose Citi Financial at 23%. I expressed my anger at the situation and the Citiservant said,"maybe you should have read the contract." They are crooks and made an already difficult situation even worse. I will never use a Citigroup service or product as long as I live.
Kwfjr
algonquin, Illinois
U.S.A.
When my insurance check arrived, I learned the payoff balance was MORE than what I borrowed ($10,035.00). A 5 month loan cost me over $1485.00 (36% interest per year). I'm no lawyer, but I believe that violates state usury laws. When I asked how it is possible to make 5 payments and owe more than I borrowed, they said my payments where late and they calculated interest using the rule of 78's.
The worst possible loan for short term financing considering its not what I asked for. I asked for a simple short term line of credit. The contract does say payments are calculated using the rule of 78's and even gives a detailed and very confusing equation on how it is calculated. It is my contension that Citi Financial mislead me and no-one in their right mind would willlingly agree to a loan of this type.
I could have crossed the parking lot and pickup a 28% line of credit at Fifth-Third Bank, but I chose Citi Financial at 23%. I expressed my anger at the situation and the Citiservant said,"maybe you should have read the contract." They are crooks and made an already difficult situation even worse. I will never use a Citigroup service or product as long as I live.
Kwfjr
algonquin, Illinois
U.S.A.
1 Updates & Rebuttals
Manny
Kokomo,Indiana,
U.S.A.
Optional Products
#2UPDATE Employee
Tue, October 23, 2007
I read your post and have to conclude that that you selected some of the optional products available to you. Did you sign up for involuntary unemployment, disability, life or Home and Auto protection? If so, your check may have been $10K, but the amount financed included the premiums for those products. It may have been as high as $11,750 or so. If this was the case, the amount of your loan was not $10K but the higher amount. Therefore, after 5 months of on time payments, your payoff may have been higher than the proceeds check that you received.
