AMEX APP/Denied...Recon Approved Maybe???

[DONZI]

---

@Shaed251 wrote:

I can't take on the refi because that would cause me to have another credit pull and it would go on my report as a new loan, which I can't have because of trying to purchase a house. 

---

Wouldn't the application (and approval) for an amex card be detrimental too?

---

This is because the comment does not affect my actual credit per say and it is not permanent and will be removed once I start back paying "normal" payments.

---

Hmm. I was understanding that you maintained normal (and/or larger during this covid period) payments. What is it that defines 'normal payments' to One Main?   ..how is it different than what you have been doing?

Give them the option maybe?

- if they want the 3.3% for xx months, inform them you'd be willing to make it 'normal' and let them make their 3.3% but you want the comment removed immediately in exchange.

..otherwise if paying off the loan ensures immediate removal of the comment of modification, that seems like a good way to move forward with the amex card acquisition and parting ways with One Main Financial.

---

I think I am going to just pay it off and NEVER deal with them again. 

---

Sounds like getting away from One Main would be a great plan.

[Shaed251]

@DONZI 

Absolutely!! When they changed the loan, the payments dropped from $492 per month with 32% interest rate to $232 per month with a 3.3% interest rate. I have been paying over that amount every month since they modified it last year and I just paid $3k in the last two months. I still have yet to receive a returned call from the supervisor, so I am done with this company. The house is no longer available. I knew this would happen since I couldn't guarantee funding. There are too many ppl in my town that are ready to purchase and sellers are taking first come first serve offers. I am just going to pay it off and see what I need to do concerning this. I am very angry and I am just trying to keep it together and not lose it! They will be accountable for their negligence. This was not a complicated fix so there is no excuse for their incompetentcy. 

[DONZI]

I'm sorry to hear that part of your plans fell through.

Thanks for explaining the loan for me. I see now that they want their 32% interest.

Perhaps this is a blessing in disguise.  Houses around here are scarce and overvalued still.

I expect this turn of events may also serve as catalyst to a stronger foundation for your next opportunity.

[Hex]

https://www.weltman.com/publication-how-the-cares-act-affects-a-creditors-duties-under-the-fcra

From the above link: For example, if a consumer was otherwise current on an obligation, but their income was cut due to reduced hours, job loss, etc., and they could foresee default on the horizon, they may sensibly contact the creditor to discuss options such as a modification, forbearance, loan workout or similar “accommodation.” If the parties reach an agreement, the new amendment provides that the creditor cannot report that loan as being in default so long as the consumer adheres to the terms of the accommodation. The FCRA and the CARES Act do not require that a creditor provide an accommodation to a borrower affected by COVID-19, unless the loan at issue is either a federally-backed mortgage loan or a federally-held student loan, both of which are defined in the CARES Act. Additionally, if an obligation was already delinquent when the accommodation was sought, the CARES Act provides the furnisher cannot advance the delinquent status. Thus, if at the time of the accommodation the consumer was 30 days past due, once the accommodation is made and the terms are being met, the furnisher cannot report the account as 60 days past due the next monthly pay period. Moreover, if during the course of the accommodation the indebtedness is cured and the obligation brought current, the furnisher must report the obligation current at that time. Furthermore, using a special comment code to report the account in forbearance or as a result of a natural or declared disaster does not comply with the CARES Act. As explained above, the CARES Act requires: That if the obligation was current prior to the accommodation, it must be reported as current or If it was not current, the reporting cannot advance the level of delinquency. The CFPB’s guidance states that furnishing a special comment code indicating impact by a disaster or that a loan is in forbearance does not meet the CARES Act guidelines. Simply put, the obligation is to be reported current or delinquently not advanced, but no further special comment or status may be used. Be advised that there is one important caveat to these new rules: these CARES Act amendments relating to accommodations do not apply to obligations that have been charged-off.

[DONZI]

A critical point might be if the modification was agreed upon or automatically done by One Main..

Most of the language defines parameters of handling delinquent or deferred payment and reporting.. It seems, none of that was required, utilized or desired by the OP... However paying with the modified APR I suppose could constitute agreement to the modification.

I could imagine predatory lenders pushing unneeded assistance which can create new obligations and rules for their ultimate benefit. The modification apparently took the loan and CRA data hostage in a way which was not previously possible -- with the expectation of dictating more profitable refinance terms.

It seems that paying the loan off and taking the significant APR savings is the way to turn the tables on the lender and make a favorable exit from the relationship.

Picking through the legal details of all that would waste time IMO when there is an apparent exit point with multiple benefits to the OP.

One Main has been around the block and seems to exist okay despite questionable practice.

Since they don't seem to be reasonable, I'd probably choose to crusade against the lender by free (speech) methods unless there was very obvious legal grounds to get very low cost, immediate satisfaction.

Out of spite I might even consider taking the 3.3% APR for the maximum duration allowed just to rub it in their face.

[Shaed251]

@DONZI 

Thank you for your response.  I just love your way of thinking.   I honestly was so upset about losing the house but I feel that whatever God has for me, I will get it, so I am not going to stress over it. I do feel they should be accountable for something but the legal hassle would probably be more of a pain than just paying it off and be done with them. Since, the house hunt is back on, I will focus on that right now and just end my relationship with One Main. Thank you for all the great advice and support. I really appreciate it! 

[DONZI]

@Shaed251  -- my pleasure. Occam’s Razor is wonderfully applicable to a lot of situations.

[Shaed251]

Update.....

So, I finally spoke to the representative at One Main and found out that the only way for me to get out of the modification is to pay it completely off. I couldn't even refi or anything. Not only that, I found out my interest rate is not what they quoted me and I owe over $1k after this loan is paid because they said that I owe for forbearance interest!! What!!!! I had no idea of this! I asked why wasn't any of this disclosed and he said it was something that they wrote in the modification. This was just foolery!! I am so over this loan. He said it was the interest that accured before the modification. They basically put it on hold so it doesn’t accure any more interest. But once the loan is paid off, then it will start accuring interest immediately at regular interest rates. What!!! So, I asked once I pay the current loan balance off, then the modification comment comes off right? Wrong!! The forbearance interest balance has to be paid too, then they will remove it. So messed up, but it is all good. They didn't disclose any of this to me and I am sure I am not the only one they have done this to. I'm sure they will eventually have to pay all these people money back at some point. 

[Bkewlbro]

Man, I'd go to the BBB website and start a complaint and skip all these BS excuses they are giving you. You didn't request a loan modification, and they can not force a service on you.

[DONZI]

@Shaed251-- wow, that seems sleazy of One Main. Problem might be that they are doing things legally (in their eyes only?).

Maybe a local television channel investigative reporter who might be interested?