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Debt + Loans?
B:L
I've done worse.Registered User regular
I've done worse.Registered User regular
Hi folks!
Someone I know is in some sort of financial trouble, but they won't clarify to me the details of the situation.
They have asked me for help though. They googled "loans" and applied for one they found online, and then asked me to check if it's legit.
My first thought was that anything that asks for a collatoral is a scam, and I replied as such, but they're being stubborn. Can you take a look at these loan details and let me know if this actually is a scam and if so what I can do to convince them to not fall for it?
Thanks.
Someone I know is in some sort of financial trouble, but they won't clarify to me the details of the situation.
They have asked me for help though. They googled "loans" and applied for one they found online, and then asked me to check if it's legit.
My first thought was that anything that asks for a collatoral is a scam, and I replied as such, but they're being stubborn. Can you take a look at these loan details and let me know if this actually is a scam and if so what I can do to convince them to not fall for it?
LOAN AGREEMENT AND PROMISSORY NOTE
THIS LOAN AGREEMENT AND PROMISSORY NOTE is made October 7, 2010, by and among LENDER and Guardian Debt Solutions, a Corporation organized under the laws. LENDER and Guardian Debt Solutions shall collectively be known herein as "the Parties". In determining the rights and duties of the Parties under this Loan Agreement, the entire document must be read as a whole.
PROMISSORY NOTE
FOR VALUE RECEIVED, LENDER promises to pay to the order of Guardian Debt Solutions, the sum of $10,000.00 dollars together with interest thereon at a rate of 6.9 percent ( %) per annum on the unpaid balance with interest to be compounded annually (hereinafter, "the Loan Amount"). This is a term promissory note that shall expire 3 years from the date of execution of this agreement by the Parties (hereinafter, "the Maturity Date"). The entire outstanding Loan Amount (including principal and all accrued interest) shall be fully paid by LENDER to Guardian Debt Solutions or any subsequent assignee of this note, pursuant to the terms and conditions set forth below; however, in all cases, the entire outstanding Loan Amount shall be fully paid by the Maturity Date.
ADDITIONAL LOAN TERMS
The BORROWER and Guardian Debt Solutions, hereby further set forth their rights and obligations to one
Another under this Loan Agreement and Promissory Note and agree to be legal bound as follows:
A. Loan Repayment Terms.
BORROWER shall make monthly payments of $308.31 to Guardian Debt Solutions beginning 60 days after the execution of this agreement and continuing, every month thereafter on the monthly anniversary date of the first payment, until the Maturity Date. As defined above, the Maturity Date is 3 years from the date of execution of this agreement by the parties. At the Maturity Date, BORROWER shall pay to Guardian Debt Solutions the entire unpaid balance upon the Loan Amount principal and interest, if any. A total of 36 monthly payments are to be made by BORROWER to Guardian Debt Solutions under this loan agreement.
B. Loan Prepayment. BORROWER may prepay the entire Loan Amount due Guardian Debt Solutions (i.e., make payment prior to the time that it is due) without penalty; however, only a prepayment of the entire Loan Amount is allowed under this agreement.
C. Method of Loan Payment. The BORROWER shall make all payments called for under this loan
Agreement by sending check or other negotiable instrument made payable to Guardian Debt Solutions
If Guardian Debt Solutions gives written notice to Borrower that a different address shall be used for making payments under this loan agreement, Borrower shall use the new address so given by Guardian Debt Solutions.
D. Default. The occurrence of any of the following events shall constitute a Default by the Borrower of the terms of this loan agreement and promissory note:
1. Borrower's failure to pay any amount due as principal or interest on the date required under this loan agreement
2. Borrower seeks an order of relief under the Federal Bankruptcy laws
3. A federal tax lien is filed against the assets of Borrower
E. Additional Provisions Regarding Default:
1. Addressee and Address to which Guardian Debt Solutions is to give Borrower written notice of default:
If Borrower gives written notice to Guardian Debt Solutions that a different address shall be used, Guardian Debt Solutions shall use that address for giving notice of default (or any other notice called for herein) to Borrower.
2. Cure of Default. Upon default, Guardian Debt Solutions shall give Borrower written notice of default. Mailing
of written notice by Guardian Debt Solutions to Borrower via U.S. Postal Service Certified Mail shall constitute prima facie evidence of delivery. Borrower shall have 15 days after receipt of written notice of default from Guardian Debt Solutions to cure said default. In the case of default due solely to Borrower's failure to make timely payment as called for in this loan agreement, Borrower may cure the default by making full payment of any principal and accrued interest (including interest
on these amounts) whose payment to Guardian Debt Solutions is overdue under the loan agreement and, also, the late−payment penalty described below.
3. Penalty for Late Payment. There shall also be imposed upon Borrower a 2% penalty
For late payment computed upon the amount of any principal and accrued interest whose payment to Guardian Debt Solutions is overdue under this loan agreement and for which Guardian Debt Solutions has delivered a notice of default to Borrower. For example, if the agreement calls for monthly payments of $500 upon the first day of each month and Borrower fails to make timely payment of said amount, Borrower (after receipt of a default notice from Guardian Debt Solutions) shall be liable to Guardian Debt Solutions for a penalty of $10 (i.e., $500 x 2%) and, to cure the default, the Borrower must pay to Guardian Debt Solutions the overdue loan amount of $500, interest upon the overdue loan amount, and a penalty of $10.
4. Acceleration. If the Borrower fails to cure any default on or before the expiration of the
Fifteen (15) day cure period that starts on the date Borrower receives written notice from Guardian Debt Solutions that an event of default has occurred under this loan agreement, the entire unpaid principal, accrued interest, and penalties under this loan agreement shall accelerate and become due and payable immediately.
5. Indemnification of Attorneys Fees and out−of−pocket costs. Should any party materially
Breach this agreement, the non−breaching party shall be indemnified by the breaching party for its reasonable attorneys fees and out−of−pocket costs which in any way relate to, or were precipitated by, the breach of this agreement. The term "out−of−pocket costs", as used herein,
Shall not include lost profits. A default by Borrower which is not cured within 15
Days after receiving a written notice of default from Guardian Debt Solutions constitutes a material breach of this Agreement by Borrower.
F. Parties that are not individuals. If any Party to this agreement is other than an individual (i.e., a
Corporation, a Limited Liability Company, a Partnership, or a Trust), said Party, and the individual
Signing on behalf of said Party, hereby represents and warrants that all steps and actions have been
taken under the entity's governing instruments to authorize the entry into this Loan Agreement.
Breach of any representation contained in this paragraph is considered a material breach of the Loan Agreement.
G. Integration. This Agreement, including the attachments mentioned in the body as incorporated
Reference, sets forth the entire agreement between the Parties with regard to the subject matter hereof.
All prior agreements, representations and warranties, express or implied, oral or written, with respect
to the subject matter hereof, are hereby superseded by this agreement. This is an integrated agreement.
H. Severability. In the event any provision of this Agreement is deemed to be void, invalid, or
Unenforceable, that provision shall be severed from the remainder of this Agreement so as not to
cause the invalidity or unenforceability of the remainder of this Agreement. All remaining provisions
of this Agreement shall then continue in full force and effect. If any provision shall be deemed invalid
Due to its scope or breadth, such provision shall be deemed valid to the extent of the scope and
Breadth permitted by law.
I. Modification. Except as otherwise provided in this document, this agreement may be modified,
Superseded, or voided only upon the written and signed agreement of the Parties. Insurance fees must paid once an approval offer has been made to the Borrower from another financial institute after
These contracts have been signed. Any Taxes that the borrower has incurred must be paid prior to issuing. Any violation of credit or personal information; done to the borrower or that the borrower is aware of or is knowledgeable of; must then be insured. Further, the physical destruction or loss of this document shall not be construed as a modification or termination of the agreement contained herein.
How loans can be paid off early.
When we lend you money, we expect you to pay it back on demand, or, as long as we permit, according to the payment schedule in this Statement. You may however pay off all or part of your Loan early. If all your Loan payments are up to date, you can pay off some or all of the principal amount owing at any time. When you make a prepayment on your Loan, all interest owing up to and including the date of prepayment must also be paid immediately.
Assignment
You cannot transfer your rights under this Statement to a third party. You acknowledge that we may transfer our rights in your promissory note to a third party. You agree that we may give any information relating to your Loan application, Promissory Note or this Statement, including your financial information to a proposed transferee.
Cancellation
We may withdraw this statement (which takes 10-15days and that may vary) and refuse to lend you money if you do not meet the criteria set by Guardian Debt Solutions to borrow money. Refund orders are processed within 10-15 days and are sent by mail.
IN WITNESS WHEREOF and acknowledging acceptance and agreement of the foregoing, BORROWER and Guardian Debt Solutions affix their signatures hereto.
If BORROWER’S credit is not in good standing a payment to cover an equivalent of 4 monthly installments is to be remitted to lender in addition payment has to be made within 7 days from date of agreement unless negotiated by lender. This will secure the interest rate and the loan amount approved. In event were payment has been made BORROWER will not have to remit monthly payment on the first 60 days and final 2 months prior to expiration of contract.
If more than one of you has signed the Promissory Note, communication with one of you is considered to be notice to all of you.
This Statement and all related documents have been executed in the English language at the express wish of the parties.
This document verifies that LENDER has been approved for a loan of $10,000.00 on a 3-year term, at a payment of $308.31 per month, amortized at a fixed interest rate of 6.9%. The collateral
Payment of $1233.24 will be deducted from your total payback of $11,099.30
THIS LOAN AGREEMENT AND PROMISSORY NOTE is made October 7, 2010, by and among LENDER and Guardian Debt Solutions, a Corporation organized under the laws. LENDER and Guardian Debt Solutions shall collectively be known herein as "the Parties". In determining the rights and duties of the Parties under this Loan Agreement, the entire document must be read as a whole.
PROMISSORY NOTE
FOR VALUE RECEIVED, LENDER promises to pay to the order of Guardian Debt Solutions, the sum of $10,000.00 dollars together with interest thereon at a rate of 6.9 percent ( %) per annum on the unpaid balance with interest to be compounded annually (hereinafter, "the Loan Amount"). This is a term promissory note that shall expire 3 years from the date of execution of this agreement by the Parties (hereinafter, "the Maturity Date"). The entire outstanding Loan Amount (including principal and all accrued interest) shall be fully paid by LENDER to Guardian Debt Solutions or any subsequent assignee of this note, pursuant to the terms and conditions set forth below; however, in all cases, the entire outstanding Loan Amount shall be fully paid by the Maturity Date.
ADDITIONAL LOAN TERMS
The BORROWER and Guardian Debt Solutions, hereby further set forth their rights and obligations to one
Another under this Loan Agreement and Promissory Note and agree to be legal bound as follows:
A. Loan Repayment Terms.
BORROWER shall make monthly payments of $308.31 to Guardian Debt Solutions beginning 60 days after the execution of this agreement and continuing, every month thereafter on the monthly anniversary date of the first payment, until the Maturity Date. As defined above, the Maturity Date is 3 years from the date of execution of this agreement by the parties. At the Maturity Date, BORROWER shall pay to Guardian Debt Solutions the entire unpaid balance upon the Loan Amount principal and interest, if any. A total of 36 monthly payments are to be made by BORROWER to Guardian Debt Solutions under this loan agreement.
B. Loan Prepayment. BORROWER may prepay the entire Loan Amount due Guardian Debt Solutions (i.e., make payment prior to the time that it is due) without penalty; however, only a prepayment of the entire Loan Amount is allowed under this agreement.
C. Method of Loan Payment. The BORROWER shall make all payments called for under this loan
Agreement by sending check or other negotiable instrument made payable to Guardian Debt Solutions
If Guardian Debt Solutions gives written notice to Borrower that a different address shall be used for making payments under this loan agreement, Borrower shall use the new address so given by Guardian Debt Solutions.
D. Default. The occurrence of any of the following events shall constitute a Default by the Borrower of the terms of this loan agreement and promissory note:
1. Borrower's failure to pay any amount due as principal or interest on the date required under this loan agreement
2. Borrower seeks an order of relief under the Federal Bankruptcy laws
3. A federal tax lien is filed against the assets of Borrower
E. Additional Provisions Regarding Default:
1. Addressee and Address to which Guardian Debt Solutions is to give Borrower written notice of default:
If Borrower gives written notice to Guardian Debt Solutions that a different address shall be used, Guardian Debt Solutions shall use that address for giving notice of default (or any other notice called for herein) to Borrower.
2. Cure of Default. Upon default, Guardian Debt Solutions shall give Borrower written notice of default. Mailing
of written notice by Guardian Debt Solutions to Borrower via U.S. Postal Service Certified Mail shall constitute prima facie evidence of delivery. Borrower shall have 15 days after receipt of written notice of default from Guardian Debt Solutions to cure said default. In the case of default due solely to Borrower's failure to make timely payment as called for in this loan agreement, Borrower may cure the default by making full payment of any principal and accrued interest (including interest
on these amounts) whose payment to Guardian Debt Solutions is overdue under the loan agreement and, also, the late−payment penalty described below.
3. Penalty for Late Payment. There shall also be imposed upon Borrower a 2% penalty
For late payment computed upon the amount of any principal and accrued interest whose payment to Guardian Debt Solutions is overdue under this loan agreement and for which Guardian Debt Solutions has delivered a notice of default to Borrower. For example, if the agreement calls for monthly payments of $500 upon the first day of each month and Borrower fails to make timely payment of said amount, Borrower (after receipt of a default notice from Guardian Debt Solutions) shall be liable to Guardian Debt Solutions for a penalty of $10 (i.e., $500 x 2%) and, to cure the default, the Borrower must pay to Guardian Debt Solutions the overdue loan amount of $500, interest upon the overdue loan amount, and a penalty of $10.
4. Acceleration. If the Borrower fails to cure any default on or before the expiration of the
Fifteen (15) day cure period that starts on the date Borrower receives written notice from Guardian Debt Solutions that an event of default has occurred under this loan agreement, the entire unpaid principal, accrued interest, and penalties under this loan agreement shall accelerate and become due and payable immediately.
5. Indemnification of Attorneys Fees and out−of−pocket costs. Should any party materially
Breach this agreement, the non−breaching party shall be indemnified by the breaching party for its reasonable attorneys fees and out−of−pocket costs which in any way relate to, or were precipitated by, the breach of this agreement. The term "out−of−pocket costs", as used herein,
Shall not include lost profits. A default by Borrower which is not cured within 15
Days after receiving a written notice of default from Guardian Debt Solutions constitutes a material breach of this Agreement by Borrower.
F. Parties that are not individuals. If any Party to this agreement is other than an individual (i.e., a
Corporation, a Limited Liability Company, a Partnership, or a Trust), said Party, and the individual
Signing on behalf of said Party, hereby represents and warrants that all steps and actions have been
taken under the entity's governing instruments to authorize the entry into this Loan Agreement.
Breach of any representation contained in this paragraph is considered a material breach of the Loan Agreement.
G. Integration. This Agreement, including the attachments mentioned in the body as incorporated
Reference, sets forth the entire agreement between the Parties with regard to the subject matter hereof.
All prior agreements, representations and warranties, express or implied, oral or written, with respect
to the subject matter hereof, are hereby superseded by this agreement. This is an integrated agreement.
H. Severability. In the event any provision of this Agreement is deemed to be void, invalid, or
Unenforceable, that provision shall be severed from the remainder of this Agreement so as not to
cause the invalidity or unenforceability of the remainder of this Agreement. All remaining provisions
of this Agreement shall then continue in full force and effect. If any provision shall be deemed invalid
Due to its scope or breadth, such provision shall be deemed valid to the extent of the scope and
Breadth permitted by law.
I. Modification. Except as otherwise provided in this document, this agreement may be modified,
Superseded, or voided only upon the written and signed agreement of the Parties. Insurance fees must paid once an approval offer has been made to the Borrower from another financial institute after
These contracts have been signed. Any Taxes that the borrower has incurred must be paid prior to issuing. Any violation of credit or personal information; done to the borrower or that the borrower is aware of or is knowledgeable of; must then be insured. Further, the physical destruction or loss of this document shall not be construed as a modification or termination of the agreement contained herein.
How loans can be paid off early.
When we lend you money, we expect you to pay it back on demand, or, as long as we permit, according to the payment schedule in this Statement. You may however pay off all or part of your Loan early. If all your Loan payments are up to date, you can pay off some or all of the principal amount owing at any time. When you make a prepayment on your Loan, all interest owing up to and including the date of prepayment must also be paid immediately.
Assignment
You cannot transfer your rights under this Statement to a third party. You acknowledge that we may transfer our rights in your promissory note to a third party. You agree that we may give any information relating to your Loan application, Promissory Note or this Statement, including your financial information to a proposed transferee.
Cancellation
We may withdraw this statement (which takes 10-15days and that may vary) and refuse to lend you money if you do not meet the criteria set by Guardian Debt Solutions to borrow money. Refund orders are processed within 10-15 days and are sent by mail.
IN WITNESS WHEREOF and acknowledging acceptance and agreement of the foregoing, BORROWER and Guardian Debt Solutions affix their signatures hereto.
If BORROWER’S credit is not in good standing a payment to cover an equivalent of 4 monthly installments is to be remitted to lender in addition payment has to be made within 7 days from date of agreement unless negotiated by lender. This will secure the interest rate and the loan amount approved. In event were payment has been made BORROWER will not have to remit monthly payment on the first 60 days and final 2 months prior to expiration of contract.
If more than one of you has signed the Promissory Note, communication with one of you is considered to be notice to all of you.
This Statement and all related documents have been executed in the English language at the express wish of the parties.
This document verifies that LENDER has been approved for a loan of $10,000.00 on a 3-year term, at a payment of $308.31 per month, amortized at a fixed interest rate of 6.9%. The collateral
Payment of $1233.24 will be deducted from your total payback of $11,099.30
Thanks.
click for Anime chatB:L on
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6.9% is crazy low for a 3 year consolidation loan as well.
Check out my band, click the banner.
I should look into this in the US, as i have less debt than that, and i'm getting nowhere trying to make payments (which are more than $300/month)on my cards with crap rates.
Do not advise any person to accept a personal loan unless they are willing to disclose the nature of their financial problems.
The fact that the first two paragraphs refer to a "lender" who is totally undiscussed after the first two paragraphs and then "borrower" is introduced in the third without warning and without explanation doesn't give me a lot of confidence, either. I would not sign a document which describes me by virtue of my signature as "Lender" in the first paragraph when I am looking to procure a personal loan.
You're friend might be retarded. I'd recommend they get their free credit report from Transunion and Equifax.
This does sound like a scammer got ahold of a very basic promissory note. However, not all loans that ask for collateral are a scam. Collateral is a very common way to secure a loan. That said, I have never heard of CASH being used as a collateral which the note seems to imply.
Why the fuck would you need a loan if you had cash to put up to secure payment of the loan?
I'm just trying to convince them that they should be more careful with their financial planning.
As for the boilerplate, I replaced their name with the capitalized LENDER for anonymity's sake. BBB doesn't pull up anything about them other than an F rating for one of their branches. Googling didn't bring up anything either.
This seems too similar to the Malaysian loan scam that I convinced them to not fall for. They were willing to apply for a loan from Malaysia, where they can get a loan for $5,000-$5,000,000 at 3%, and all they had to do was pay a collateral up front.
BORROWER shall make monthly payments of $308.31 to Guardian Debt Solutions beginning 60 days after the execution of this agreement and continuing, every month thereafter on the monthly anniversary date of the first payment, until the Maturity Date. As defined above, the Maturity Date is 3 years from the date of execution of this agreement by the parties. At the Maturity Date, BORROWER shall pay to Guardian Debt Solutions the entire unpaid balance upon the Loan Amount principal and interest, if any. A total of 36 monthly payments are to be made by BORROWER to Guardian Debt Solutions under this loan agreement.
B. Loan Prepayment. BORROWER may prepay the entire Loan Amount due Guardian Debt Solutions (i.e., make payment prior to the time that it is due) without penalty; however, only a prepayment of the entire Loan Amount is allowed under this agreement.
Youre putting down 10%, similar to something like a prepaid credit card, where the bank will give you credit of, say, 2000 dollars, but you need to put up 500 dollars incase you default. If you default before ever making a payment, it ensures they at least got some of their money back. All loans will ask you to put up some kind of collateral or have a guarantor who has collateral.
Also, guy above, thats pretty standard when youre taking out a fairly small loan. I have a consolidation loan from a real bank, but i am not able to pay towards it whenever i want. I either have the option to pay monthly to the full term, or i can pay the balance off all at once. That is so the bank can get all the interest from the loan, because the interest is calculated monthly. If you decided to start paying double the regular payments, the bank loses out on half of the interest amount, which is bad for them because they calculate their profits based on the fact that youre going to pay all of the interest. There are fancy accounting reasons why they allow you to pay the loan off in full early, but i dont feel like explaining them (in short it lets them sell more loans because your loan is no longer on their books).
While i dont agree with googling for loans, based solely on this contract, theres nothing fishy here. Its all fairly straight forward.
Check out my band, click the banner.
Again, you should refuse to give your friend financial advice unless he or she is willing to level with you about the nature of his or her financial problems.
Unless the "friend" in this situation is you, in which case you need to level with us about the problem before you can get help.
In either case, no one here can responsibly say "yes, sign this document"
Collateral is something that they come and take if you dont meet the terms of a loan. If you put your car up as collateral for a loan they dont take your car unless you default on the loan.
And yes, I agree, there is a good chance your friend is FINANCIALLY RETARDED.
While not retarded, FINANCIALLY RETARDED people are the ones that dont understand simple things such as percentages and math. These people should not be trusted with credit cards or loans or banking and should just use cash for everything.
It's not easy trying to convince someone they're financially retarded.
This is why America is like it is today. People believing that luck bring success.
Off Topic I know, im done, just cant stand people acting like its not their fault that they get into financial trouble. And then other people that think that googling "loans" and then click and applying for the first one listed is a good idea. I dont care if you dont want to call that stupid. But it is the DEFINITION of stupid and why scammers are still in business.
but that's best reserved for a D&D topic and beyond the scope of this H&A topic.
I think they decided to not pursue this loan, so this thread can be locked now, forever hopefully.