Be careful of LS "Financing"

[grsthegreat]

No question you need to be careful when dealing with banks. Here, banks are all over the place with respect to “early termination” of CD’s.

Some make you forfeit past interest. Some make you forfeit past interest plus some principal. The amounts seem to be different per bank.

The documents you sign are not written to help you understand - but they do spell out the penalties if you find the right section.

MoKelly

here in idaho its 3 months interest fee for early CD cashing out. but who in their right mind would lock up money for 60 months for 0.25% interest.

 

[MoKelly]

here in idaho its 3 months interest fee for early CD cashing out. but who in their right mind would lock up money for 60 months for 0.25% interest.

If the penalty is only 3 months interest at 0.25%, it really doesn’t matter.

MoKelly

 

[Frankenkubota]

Well the 'legal scammers' have their cohort of attorneys to word their contracts in such a way that an unsuspecting individual or small business will feel confident in signing the agreement. They 'cover their butt' , using the excuse "the contract clearly states....."
I truly wonder how many people even read the fine print let alone fully understand it.

Regarding reading the fine print. For some reason, that bothers me. Not so much that i gotta grab my ankles and do it but...... we got no choice. What irritates me is we have a system, a culture ....that both allows and requires that you sign a bunch of documents that no one understands. (one group completely understands) Of course we all know, you are not supposed to understand them and we also know if you don't sign or click you are toast.

Get a FHA mortgage and count the legal documents you sign, completely oblivious. Every time you click,I accept, you may have given away your first born. The small print on the tv commercials and the guy on the radio that can read the disclaimers 1000 MPH! Please!

It's insulting that we have to do it and worse, it's insulting that we put up with it. Keeps the legal profession busy.

Thanks again councilor!

 

[Tinhack]

here in idaho its 3 months interest fee for early CD cashing out. but who in their right mind would lock up money for 60 months for 0.25% interest.

That could be a substantial amount. The alternative is a skimpy 0.10% standard savings account. :confused2:

And for those of you complaining about the "contracts"; Remember YOU are the ones that hired the lawmakers who are typically lawyers. What would you expect?