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New SANTANDER Loan...

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KeithW
Frequent Contributor

Re: New SANTANDER Loan...


@fury1995 wrote:

@KeithW wrote:

We signed electronically and were then given the paper documents of what we signed. I am going to the dealer first.

 

As for extra payments, the Santander sight is extremely basic and doesn't give any options when making payments other than the amount and date. The contract specifies that it is a simple interest loan, doesn't that mean that any extra payment goes to the principal? I have emailed Santander to confirm this.


Simple interest loans means there is no pre-payment penalty. If you pay the loan off early, all unearned interest is waived (you only pay interest on the payments already paid). You probably signed a LAW-553 Simple Interest Retail Sale Installment Agreement. Check the Regulation Z / Truth in Lending Disclosure (Fed Box - big square or rectangle box where the loan terms are) and see what the terms are for additional payments.

 

Also, does the contract itself state the dealer assigned the contract to Santander or is it blank or another lender? That would be at the bottom below your signature where it says "First Contract Assignment" or "Assignee" or something similar.


Yes. It lists Santander on the contract. I talked to the dealer today and the salesman called me and said it was a simple clerical error and they are fixing the issue with Santander. We will see how this goes since I already made my first payment.

EQ671 TU673 EX662
Message 11 of 22
nimmieamee
Member

Re: New SANTANDER Loan...

I financed a car through them many years ago at a subprime rate and if you make your payments on time, it isn't an issue at all. I refinanced the loan as soon as I found a better rate and the early payoff was simple as well. Definitely make sure they correct that interest rate.

Message 12 of 22
fury1995
Valued Contributor

Re: New SANTANDER Loan...


@KeithW wrote:

@fury1995 wrote:

@KeithW wrote:

We signed electronically and were then given the paper documents of what we signed. I am going to the dealer first.

 

As for extra payments, the Santander sight is extremely basic and doesn't give any options when making payments other than the amount and date. The contract specifies that it is a simple interest loan, doesn't that mean that any extra payment goes to the principal? I have emailed Santander to confirm this.


Simple interest loans means there is no pre-payment penalty. If you pay the loan off early, all unearned interest is waived (you only pay interest on the payments already paid). You probably signed a LAW-553 Simple Interest Retail Sale Installment Agreement. Check the Regulation Z / Truth in Lending Disclosure (Fed Box - big square or rectangle box where the loan terms are) and see what the terms are for additional payments.

 

Also, does the contract itself state the dealer assigned the contract to Santander or is it blank or another lender? That would be at the bottom below your signature where it says "First Contract Assignment" or "Assignee" or something similar.


Yes. It lists Santander on the contract. I talked to the dealer today and the salesman called me and said it was a simple clerical error and they are fixing the issue with Santander. We will see how this goes since I already made my first payment.


If that's the case, you'll get a correction letter from Santander with a credit to your account for the overage on the interest from the payment made. Keep us updated!

August 28, 2023 FICO 8

August 28, 2023 FICO BankCard 8

August 28, 2023 FICO Auto 8

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Message 13 of 22
7774x
Frequent Contributor

Re: New SANTANDER Loan...

Santander cut back  on anything but top tier credit auto loans.. 1 month a ago..  .. raised rates,, to front run coming wave of car loans going bad... Did you ever try PenFed / Navy ?

Message 14 of 22
KeithW
Frequent Contributor

Re: New SANTANDER Loan...

I talked to the salesman again today and he said they were just waiting on Santander to fix the issue and they would be in touch. So we are still waiting. On another note, my first $1,000 payment was posted to my account today. Our salesman kept telling me I didn't need to make my first payment for 45 days like it was a good thing. I said, won't I be accruing interest during that 45 days? He just smiled.

EQ671 TU673 EX662
Message 15 of 22
KeithW
Frequent Contributor

Re: New SANTANDER Loan...

Would you believe that we got a call today, after having our car for a month, saying that they paid off Santander, and instead of fixing the interest rate with them, they got us approved through Ford Credit at 7%. I am very happy now.

EQ671 TU673 EX662
Message 16 of 22
Beefy1212
Established Contributor

Re: New SANTANDER Loan...


@KeithW wrote:

Would you believe that we got a call today, after having our car for a month, saying that they paid off Santander, and instead of fixing the interest rate with them, they got us approved through Ford Credit at 7%. I am very happy now.


But that means you still have an extra brand new account on your profile right? And another inquiry?

 

I don't like to see people get in trouble but... I hope that salesman got fired.



Message 17 of 22
Snoopy916
Valued Member

Re: New SANTANDER Loan...

Santander is the worst. I had them a long time ago when I messed up my credit. Had a 6 year loan i paid off in less than 3. I needed my title to sell the car privately and it took them over 6 months to get it to me. I must have called them 20+ times. 

Message 18 of 22
RedHawaii
New Member

Re: New SANTANDER Loan...

Am I the only one that thinks this is weird? Seems to me that they had probably already gotten you approved through Ford but would make more money if they went through Santander. Especially if you normally have a zero interest. 

Message 19 of 22
mau471
Contributor

Re: New SANTANDER Loan...


@RedHawaii wrote:

Am I the only one that thinks this is weird? Seems to me that they had probably already gotten you approved through Ford but would make more money if they went through Santander. Especially if you normally have a zero interest. 


I feel the same, seems shady on the dealers part but maybe I am just paranoid. The negative issues with Ford given the overall history don't seem like they should have been denied. Would be curious if OP ever got an denial from FMC on the original app.

 

When I bought my current car I told the dealer I wanted to use Penfed but they required financing through them to waive the "market adjustment" and said they could put it through Penfed. Then they claimed I was denied and put me through Wells Fargo instead. When I called to find out why I was denied given my profile the rep said they approved my loan and offered to do a refinance app instead without a new pull. I ended up doing that before I even got my loan documents in the mail from Wells Fargo, I got an angry call from the salesman asking why I refinanced the loan so quickly, informed them they lied and said my app with Penfed was denied when it wasn't and he backed off. The annoying thing to the whole situation was I ended up with the Wells loan on my CR even though I never made a single payment, but small price to pay to teach the dealer an admittedly minute lesson.



Message 20 of 22
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