Go Public Couple feel 'robbed' by 25% interest TD car loan

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Go Public Couple feel 'robbed' by 25% interest TD car loan
Topic Started: Jan 7 2014, 01:51 AM (428 Views)
Darcie	Jan 7 2014, 01:51 AM Post #1
Skeptic Posts: 31,154 Group: Member Member #714 Joined: March 30, 2010	Quote: A B.C. couple are speaking out about how they feel they were misled into a 25 per cent vehicle loan from TD, which has left them paying more than double the price of their car. “We’re paying $21,000 for the loan — then $23,000 in interest,” said Angie Hauser of Kelowna. “They’re making money off of people who have no money.” “We’ve been robbed by a bank with the help of a car dealer. I mean, that’s the only way I see it,” said her husband Enzo Gamarra. http://www.cbc.ca/news/canada/british-columbia/couple-feel-robbed-by-25-interest-td-car-loan-1.2483342?cmp=rss And what were the profits of the TD? The rich get richer, irked.gif



haili	Jan 7 2014, 02:14 AM Post #2
Gold Star Member Posts: 7,084 Group: Member Member #387 Joined: September 15, 2006	You can get a better interest rate through the car dealership than through the bank.



Dialtone	Jan 7 2014, 04:07 AM Post #3
Gold Star Member Posts: 7,190 Group: Member Member #721 Joined: April 1, 2010	The banks are not much better than loan sharks, but the couple isn't without some blame. They already declared bankruptcy due to credit card debt, so you'd think they would be more cautious about borrowing money.



heatseeker	Jan 7 2014, 04:23 AM Post #4
Veteran Member Posts: 10,320 Group: Member Member #713 Joined: March 30, 2010	Many people who are bad with money remain bad with money throughout their lives. It's telling that the TD bank branch official was astonished that TD would charge 25 per cent on any sort of loan. Prime is 3 per cent now, I believe. Helluva spread.



Darcie	Jan 7 2014, 04:24 AM Post #5
Skeptic Posts: 31,154 Group: Member Member #714 Joined: March 30, 2010	I agree with you two, what I find ludicrous is that they would believe a car salesman when he said that the interest rate would go down after a year.



reactivate	Jan 7 2014, 04:26 AM Post #6
Gold Star Member Posts: 3,897 Group: Member Member #769 Joined: May 18, 2010	Prime may be around 3% but standard unsecured loans such as credit cards etc. run up around 20% or higher. This couple, with their record, were lucky TD even considered them.



reactivate	Jan 7 2014, 04:33 AM Post #7
Gold Star Member Posts: 3,897 Group: Member Member #769 Joined: May 18, 2010	haili Jan 7 2014, 02:14 AM You can get a better interest rate through the car dealership than through the bank. Not really true. Sure, you can get some good rates (even 0%) on some cars that you don't want to buy but you have to give up the big discount that you would get if you used your own financing. All banks have a variety of loan rates depending on individual credit worthyness and how secure the loan is. Those rates run from about Prime+1% up to whatever the market will bear.



heatseeker	Jan 7 2014, 04:34 AM Post #8
Veteran Member Posts: 10,320 Group: Member Member #713 Joined: March 30, 2010	I notice there is one of those automatically generated ads on the site for unsecured car loans where 99 per cent of applicants are approved. :Hmmmfrown: It's true that I would not lend this couple a dime of my own money, but I do not have the vast apparatus of collectors, lawyers, etc. that financial institutions have.



reactivate	Jan 7 2014, 04:50 AM Post #9
Gold Star Member Posts: 3,897 Group: Member Member #769 Joined: May 18, 2010	heatseeker Jan 7 2014, 04:34 AM I notice there is one of those automatically generated ads on the site for unsecured car loans where 99 per cent of applicants are approved. :Hmmmfrown: It's true that I would not lend this couple a dime of my own money, but I do not have the vast apparatus of collectors, lawyers, etc. that financial institutions have. But the very last thing a Bank wants is to have to invoke collection procedures. What does a Bank want with a used car worth less than its outstanding loan?



heatseeker	Jan 7 2014, 04:56 AM Post #10
Veteran Member Posts: 10,320 Group: Member Member #713 Joined: March 30, 2010	True. But I imagine the threat of siccing the collector may occasionally be effective. TD recently (December) became the largest Canadian bank by asset size (mainly loans). And Ed Clark, the long time CEO, is retiring in November. This is a stretch, but I think there is a case to be made that Clark has decided to go out with a bang, and damn the consequences. Retail banking has been quite flat for a while, because most of us either lack borrowing capacity or think it prudent not to borrow. Fluffing up the old balance sheet for TD means moving into much riskier lending. The bank has apparently been buying up subprime lenders of all sorts, or subprime portfolios. I would dump TD shares. Edited by heatseeker, Jan 7 2014, 06:01 AM.



haili	Jan 8 2014, 01:05 AM Post #11
Gold Star Member Posts: 7,084 Group: Member Member #387 Joined: September 15, 2006	In my experience the car dealerships can get you better rates but like any other purchase, you have to shop around and check things out for yourself. There are such things as family rates, loyal customer discounts and special sales.



Darcie	Jan 8 2014, 03:17 AM Post #12
Skeptic Posts: 31,154 Group: Member Member #714 Joined: March 30, 2010	When I bought my last car I negotiated a 0% interest rate for purchase from GM.



Darcie	Jan 10 2014, 01:10 PM Post #13
Skeptic Posts: 31,154 Group: Member Member #714 Joined: March 30, 2010	Car buyers say dealerships duped them over TD's costly loans Quote: Several dozen Canadians who have high interest car loans from TD have contacted Go Public, claiming they were deceived by dealers into believing the interest charges would be lowered after a year. “I feel very misled and deceived,” said Ashley Franson, of Pitt Meadows, B.C., who said TD has since refused to give her a lower rate. http://www.cbc.ca/news/canada/british-columbia/car-buyers-say-dealerships-duped-them-over-td-s-costly-loans-1.2489309?cmp=rss It appears that what happened to the first couple is common practice, with the help of the TD. Shame..... Edited by Darcie, Jan 10 2014, 01:11 PM.



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