Express Currency (Currency Capital) buyer beware

   / Express Currency (Currency Capital) buyer beware #1  

jk96

Veteran Member
Joined
Nov 23, 2006
Messages
2,141
Location
Missouri
Tractor
Kubota L6060
Working on purchasing a trackloader as discussed in my earlier thread "Economy PTO & Creeper". I found a loader prior to the one I am looking at now on machinery trader and clicked on the finance tab that they include on all of their listings. Figuring a 2nd quote on financing would not hurt. My rate from the dealer through CNH financing was 5.9%. When you click the finance tab it takes you to a page for "Express" which I later found out is through "Currency Capital" Currency Capital - Equipment Financing - Lending - Technology You will find this company when clicking the finance tab on all of the major sites such as machinery trader, tractor house, auction time, etc.

2018-08-29 (2).png

Seeing they are the advertised lender for all of the major equipment sights I assumed they would be reputable. A few clicks and couple of forms to fill out and I quickly had an email from their Rep John. Below is the email correspondence. His in red, mine in blue.

Jeremy,
I received your finance inquiry for the 2015 New Holland C238 through MachineryTrader.com.
How long of a term are you seeking? OR Are you still looking for financing?
We can structure anywhere from 12-72 months.
Thanks,

John Brozovic
currency
Account Executive
O: (310) 909-5042


Hi John,
thanks for the reply. I did not complete the form as I received a call while working on it that the machine did not have the features listed. I may be looking for financing if I can find what I'm looking for.
Jeremy


Hi Jeremy,
Thanks for getting back to me on this. I have sent another application out to this email through the website DocuSign for your convenience. We do soft pulls on the credit, so securing an approval will not cost you anything.
We can also work with any private party seller or dealership, so securing your approval is typically the first step in the process. If you have any questions you can reach me here or at my direct line 310-909-5042.
Thanks




At this point I filled out the app in order to get approval and a finance rate to compare to my rate of 5.9% from the dealer through CNH.



Jeremy,
Congratulations you are approved for the $45,000! Here are the options we have currently;

0% Down, up to 66 Months, 6.10% Interest
10% Down, up to 72 Months, 4.96% Interest

Both programs are principle only, so you can pay them off anytime without any penalty. Additional fees would include one of the following;

$340 for documentation fees if the transaction is from a registered dealer/equipment vendor
OR
$435 for documentation fees if the transaction is from a private party seller



Would want to do the 10% down plan and either 60 or 72. Thanks John. Will let you know if needed.
Jeremy




After emailing again and informing I wanted to finance the $45,000 at 4.96% for 72 months I received the following docusign contract via email asking me to sign and complete for the financing. Red flag immediately when I noticed the payment amount of $842 for 72 months and nowhere could I find an interest rate listed in the documents.

2018-08-29.png

Running a loan calc the payments should have been around $726. Below are the followup emails.



Hi John,
the numbers are not adding up to me on the term length vs payment amount at 4.9%. Can you verify this is listed correctly on the document? Looks like it list 72 month term with a payment amount of $842.38. That should be more in line with a 60 month term at 4.9%. By my calculations a 72 month term would be closer to a payment of $726.
Jeremy


Jeremy,
Correct the payments are off. 72 months on 45,245.29 at 4.9% should be 815.35 a month. Here's how I got that;

Monthly Payment x Term Length = Total Payback going full term

815.35 x 72 = 58,705.20

Total Payback Finance Amount = Interest Paid

58,705.20 45,245.29 = 13,459.91

Interest Paid / Number of Years = Interest Per Year Paid

13,459.91 / 6 = 2,243.31

Interest Per Year Paid / Finance Amount = Annual Interest Rate

2,243.31 / 45,245.29 = 4.9%


John this is not correct and you know that. Interest per year should go down each year as the principle is reduced. You do not pay interest on the full principle each year. The interest paid per year gets less as the principle is reduce. 72 months should be $727 with total interest paid of $7069. Getting ready to walk from your company if this is how you operate. Your rate is around 9%
Jeremy


How did you come to that number?

Run any loan calc online. You are charging for interest on principle that doesnt exist as the loan is paid down. I will go through CNH. My payments through them at 5.9% 72 month is $747. Your practice is very shady.
Jeremy


Jeremy,
There are several ways to calculate interest. I gave you the number provided to my by underwriting. If you were to use an amortized calculator, the way you would for a mortgage or consumer loan, you would effectively reach the rate you are getting of 9%.
I am sorry for the confusion, and if you have a better opportunity at CNH I would suggest you take that offer.
Best
John,


Sorry for the long read but thought it might be important to share, especially since this lender is the direct lender used on all of the major equipment sites when you click on their financing tab. They are charging interest rate on the original principle amount borrowed each and every year, not on the actual principle amount you owe after paydown.
 
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   / Express Currency (Currency Capital) buyer beware #3  
Most people only look at the payment and have no idea how it is figured or what it should be. Thanks for the information
 
   / Express Currency (Currency Capital) buyer beware #4  
VERY interesting. Jeremy - I actually understand what you are saying. Amazing because as Zebrafive said - most just will look at the monthly payment - not how it was calculated.

I'd have told him to shove it up - with a red hot rotating ratchet wrench. Dam - I just wonder how many are getting screwed.
 
   / Express Currency (Currency Capital) buyer beware #5  
LOL, the lender admitted that they did calc their way, which is wrong. I am amazed at the deception in what should be a well regulated with lots of oversight business. Did you happen to point the issue out to the website that had links to that shady business?
 
   / Express Currency (Currency Capital) buyer beware
  • Thread Starter
#6  
LOL, the lender admitted that they did calc their way, which is wrong. I am amazed at the deception in what should be a well regulated with lots of oversight business. Did you happen to point the issue out to the website that had links to that shady business?

It's most of the machinery sites. If you click the get financing tab under every item on the major sights such as tractorhouse, machinery trader, auctiontime it takes you direct to this company. My guess is they are paying the sites a ton of money for this.
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   / Express Currency (Currency Capital) buyer beware #7  
It's most of the machinery sites. If you click the get financing tab under every item on the major sights such as tractorhouse, machinery trader, auctiontime it takes you direct to this company. My guess is they are paying the sites a ton of money for this.
View attachment 569044

Wait for the next shoe to drop. Almost guaranteed they did a hard pull on your credit. Nobody does a soft pull for a $45k line of credit. At least u will have just 2 companies doing hard pull. Worst thing anyone can do is let any dealer "shop" the financing options for u - they will blitz u with hard pulls from more financial institutions than u can shake a stick at - especially car dealers.
JK96, might behoove u to go to myfico.com and get a monthly monitoring subscription for half a year or so - I have it and it costs $32/mo. Let's u know if any accounts get opened, inquiries made on your credit, and gives u your actual credit scores. Good way to protect yourself and your credit. Good luck on the purchase.
 
   / Express Currency (Currency Capital) buyer beware
  • Thread Starter
#8  
Wait for the next shoe to drop. Almost guaranteed they did a hard pull on your credit. Nobody does a soft pull for a $45k line of credit. At least u will have just 2 companies doing hard pull. Worst thing anyone can do is let any dealer "shop" the financing options for u - they will blitz u with hard pulls from more financial institutions than u can shake a stick at - especially car dealers.
JK96, might behoove u to go to myfico.com and get a monthly monitoring subscription for half a year or so - I have it and it costs $32/mo. Let's u know if any accounts get opened, inquiries made on your credit, and gives u your actual credit scores. Good way to protect yourself and your credit. Good luck on the purchase.

I currently monitor my credit score, inquires, etc through Experian. Loan is a business line of credit and so far nothing has shown on my personal as of yet. It still could from the scam company but doubt it does through CNH. I didn't do any shopping through the dealer, just asked dealer to quote from CNH only. It's also a business line as well and I am not a guarantor on that one.

Making the trip tomorrow to take a look at the TR340. Hopefully have it on the trailer on the way home if it is worth the trip.
 
 
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