Anybody heard of or know who 321Loans is? I got a letter in the mail that I'm pre-approved for a low interest rate loan (4% to 7%) for up to $35,000. It says it's "A not for profit corporation". Sounds weird to me because I didn't apply for it. The qualified debts include: Credit Cards, Signature Loans, Private Student Loans, Accounts in Collection, Medical Bills.
I just shred this type of junk mail. If you didn't apply for it then just ignore it. More likely than not it's a scam or something hidden in the terms. They are giving out loans and charging interest yet they say "not for profit", doesn't add up.
I do the same but was wondering if they are sending this out to a bunch of people at the same time. I'm definitely not applying. I see their Facebook page domain at 321loans.org is different than what's in the letter at 321loanhelp.com so makes my "scam radar" light up.
@longtime_lurker wrote:
@ltorres25 wrote:I just shred this type of junk mail. If you didn't apply for it then just ignore it. More likely than not it's a scam or something hidden in the terms. They are giving out loans and charging interest yet they say "not for profit", doesn't add up.
I agree that they could not be very good. But what I highlighted here makes no sense. Does that mean my CU (or any CU) is in someway hiding something sinister?
The answer is no. CUs use the interest gained to subsidize their other accounts (i.e. checking/saving) and to expand.
Just be careful in how much you generalize statements.
...but your CU DOES profit from loans. You gotta know that, right? 
@adavis425 wrote:
@longtime_lurker wrote:
@ltorres25 wrote:I just shred this type of junk mail. If you didn't apply for it then just ignore it. More likely than not it's a scam or something hidden in the terms. They are giving out loans and charging interest yet they say "not for profit", doesn't add up.
I agree that they could not be very good. But what I highlighted here makes no sense. Does that mean my CU (or any CU) is in someway hiding something sinister?
The answer is no. CUs use the interest gained to subsidize their other accounts (i.e. checking/saving) and to expand.
Just be careful in how much you generalize statements.
...but your CU DOES profit from loans. You gotta know that, right?
From an economic standpoint - yes they do. But this is given back to it's members through improved rates on savings, cheaper banking products/loans, expansions, techonological advancements, etc.
Banks would take this profit and give it back through share dividends to stockholders.
