1 Million Dollars

Wednesday, February 12, 2014

Always Check! My shock with my credit union

So, this morning I restarted my deposits to my IRA.  I want to try to get as much in for 2013 as I can, so I have three months to go!  Remember you can deposit under last year's limit until April 15th.  After I set up my automatic transfer, I was checking out my credit union's website to see if there was anything new.  I saw that they had student loans now.  Wow, credit unions normally have better rates than anyone else and variable private loans can be found as low as 2.75%, whereas fixed rates can be found as low as 6%.  So, I try to check it out and I can't find a rate ANYWHERE.  I can find the rate for every other loan but not this one.  But, I have gotten in the groove and want to know!  I pick up my phone and call.  Go through the automated system and finally get a person and do you know what the lowest rate they had was? 9%

They say they have private student loans but charge the personal loan rate?  Why would you do that?  I asked the woman for a reason that they were so much more expensive than their competition.  And was just told that they don't do many loans so they keep the interest high.  Don't you think it might, just might, be the other way around?  Your rates are way over the norm so no one uses you.
Do they not legally classify these loans as private loans and therefore the loan is not insured by the federal government?  Oh no, they do.  So.... what is going on?  Why is a credit union price price gouging? 

I don't know if I am cranky enough to write a letter to our board about this or not.  If I do, I will report back.  However, it does make me happy I checked and not trust in their past behavior.
Never assume when it comes to money, always confirm. 

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