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Unsolicited checks can be a lifeline and an albatross

Senior Contributor

Unsolicited checks can be a lifeline and an albatross

Very sad but completely legal (the CreditOne of sub-prime loans): 

 

http://www.courant.com/nation-world/hc-wp-unsolicited-checks-20180702-story.html

 

 

 

Message 1 of 5
4 REPLIES
Established Contributor

Re: Unsolicited checks can be a lifeline and an albatross

Just finished reading this article at the Washington Post and it's infuriating knowing these loans are targeting people already financially strapped. I shared this article so family and friends can share the knowledge to avoid this kind of stuff. Thanks for posting the article!

Starting Scores FICO 8 (Feb '18):
EX- 519, TU- 530, EQ- 545
Goal Score: 700 across the board



Message 2 of 5
Senior Contributor

Re: Unsolicited checks can be a lifeline and an albatross

There is a very large sub-culture in the USA of "unbanked" meaning they either don't qualify for a bank account or they choose not to use traditional banking or credit options - many due to income limitations, but many more due to lack of "documentation" such as proper ID (I'm not going to mention un-documented immigrants as a separate category, but they are included). "Sub-Prime" customers include those that have messed up their credit and those un-banked - are prime victims of payday loans, vulture credit cards (my term) and repo-lot car sales/loans. 

 

The linked article is just one way to "market" to the unbanked, much like CreditOne does with endless USPS mailings and the like offering $250 CL's with $95 a year AF's backing all this goodwill up with a willingness to quickly sue for transgressions all backed by wall street money searching for a high return (factual comment, not a political one).

 

I could add a lot of facts on this part of the lending industry, but that's better for a 'blog article" and we don't have those on MF, especially since it would touch on legislative reforms and we really can't go there on these forums.   

Message 3 of 5
Valued Contributor

Re: Unsolicited checks can be a lifeline and an albatross

I've gotten at least one of those checks recently. I destroyed it.

 

Also, it's becoming intensely irritating that even though I'm two and a half years now into my credit rebuild, have made such substantial progress that I was able to close out my secured card months ago and have several good-to-very-good rewards cards, with nearly $80,000 of revolving credit to my name, I'm STILL getting Credit One offers.

Ch 7 BK discharged 11/28/14, credit rebuild well advanced. FICO 9/13/18:TU 664 FICO 8 or 687 FICO 9/EX 697 FICO 8/EQ 685 FICO 8 or 682 FICO 9 (Penfed 6/12), VS 3.0 9/20/18: TU 707/EX 699/EQ 709. $84,600 revolving credit as of 9/20/18; $1K NFCU cashRewards Visa, $4.8k Discover It, $5.5k Discover It #2 (new 3/12/18), $6k Paypal 2% CB MC, $6k Amazon Prime Store Card, $6k Walmart Store Card, $7k Apple FCU Platinum Visa, $7k Penfed Power Cash Rewards Visa, $10.3k Overstock Store Card, $15K Care Credit, $16K Cap One QS Rewards Visa Signature, $10k PenFed used car loan, $5k Navient student loan, $12.7k Lending Club loan. Gardening: RESET THE CLOCK!!! 22 HP inqs total as of 8/29/18: 10 TU, 8 EQ, 4 EX (about half over 1 year old).
Message 4 of 5
Frequent Contributor

Re: Unsolicited checks can be a lifeline and an albatross

This is the company that sent me an unsolicited 1200 check just last week.  I wondered myself how they could just send out checks without knowing anything about the person receiving it.  Unbelievable!




Instead of waiting for the storm to pass, I've learned to dance in the rain.
Message 5 of 5