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Banks refusing to lend: Why Our Auto Loan Was Turned Down

 
Anonymous Coward
User ID: 840970
United States
12/14/2009 02:19 PM
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Banks refusing to lend: Why Our Auto Loan Was Turned Down
OK, now I have proof that banks are turning down lending for frivolous reasons, just like Barack Obama said yesterday. We got an "Explanation of Rejection" letter for an auto loan in the mail today.

Now I don't want to claim that taking out an auto loan is the best thing to do right now. But our old car was breaking down too much and we found a steal of a deal on a used 45K miles Toyota Tacoma that we can really use to save money on doing some work on our house.

We applied for auto loans -- we have little debt and high income -- but were turned down except for high interest loans. We accepted the high interest loan because it's a simple interest loan that we can pay off early without penalty at any time.

But here's the kicker: we just got the letter in the mail today on why Capital One turned us down for an auto loan, and here's the explanation: "Year applicant's mortgage originated".

So just because we have a mortgage that originated in the past few years (at the height of the housing bubble) they assume we're poor credit risks. Actually, we sold a house in one high-appreciation market and bought another house in a similar market, and use some of the proceeds from the one house as a down payment on the mortgage, which was a low interest simple conventional loan. So we are not under water on our mortgage and we have a low interest conventional loan that is not going to balloon or reset on us.

The fact that we were denied an auto loan simply because of the year our mortgage originated, without any other rationale, supports what Obama said yesterday and what others have been saying: banks are not interested in lending and are making irrational decisions to refuse to lend.

Banks are making more money on Wall Street and options trading than risking lending in a recession they helped create, and their refusals to lend are helping shut down the economy even more.

Excuse my language, but fuck 'em. The whole threat that led to the bailouts last year was that if the banks fail, they can't lend and the economy will shut down. Seems like they're not really lending anyways and as far as I can tell, we should have let them fail.
Aquarius 7

User ID: 826242
United States
12/14/2009 02:22 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
//... we should have let them fail.
 Quoting: Anonymous Coward 840970

. .


aq agreed
.

Cayce: “… The greater portion of Japan must go into the sea. …. then we may know it has begun …”. www.near-death.com/experiences/cayce11.html
.
"Be kind, for everyone you know is fighting a hard battle" - Plato
.
"Those who are at peace in their hearts already are in the Great Shelter of life." ~ Hopi Prophecy
.
Anonymous Coward
User ID: 501458
United States
12/14/2009 02:26 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
//... we should have let them fail.

. .


:aq agreed:
 Quoting: Aquarius 7



ditto
Anonymous Coward (OP)
User ID: 840970
United States
12/14/2009 02:27 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
If I could post pics on here, I'd post a pic of that line in the rejection letter. It's absolutely true... they are making up reasons not to lend.
Anonymous Coward
User ID: 840982
Italy
12/14/2009 02:29 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
They are to busy in giving extra bonus pay to themselves..
Anonymous Coward
User ID: 839198
Australia
12/14/2009 02:31 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
No thats isn't why.
Year applications mortgage originated means you haven't had your mortgage long enough.
You are still only paying off the interest, and have not enough equity in your home.
How much of a down payment did you put?And whats the house worth?
This has nothing to do with the specific year it originated it simply means it hasn't been long enough.
Anonymous Coward (OP)
User ID: 840970
United States
12/14/2009 02:41 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
No thats isn't why.
Year applications mortgage originated means you haven't had your mortgage long enough.
You are still only paying off the interest, and have not enough equity in your home.
How much of a down payment did you put?And whats the house worth?
This has nothing to do with the specific year it originated it simply means it hasn't been long enough.
 Quoting: Anonymous Coward 839198


Well, the rejection letter says, literally "year mortgage originated", not "mortgage too young".

Secondly, there is no lending protocol that says anyone whose mortgage is under XXX years old can't get other loans. Otherwise, everyone who buys a house would be routinely shut out of other kinds of lending for years.

If that were the case, since this is the 3rd house I've owned, I'd have seen that kind of reason for rejection before!
Anonymous Coward
User ID: 840994
United States
12/14/2009 02:44 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
How about you buy a beater car and own it free and clear?

Or do you need the newest dodad and onstar stuff for your new car?
ElementX

User ID: 840996
United States
12/14/2009 02:47 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
Great post, OP, but I gotta ask, why the hell would you chose to do business with Chase? Wouldn't you be better off working with a credit union or locally owned bank?
Anonymous Coward
User ID: 646478
United States
12/14/2009 03:17 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
But what Obama is wrong about is that banks should be lending AT ALL why should banks lend?
Aquarius 7

User ID: 826242
United States
12/14/2009 11:00 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
Great post, OP, but I gotta ask, why the hell would you chose to do business with Chase? Wouldn't you be better off working with a credit union or locally owned bank?
 Quoting: ElementX

.

I was wondering that, too. Seems to me there are better places to go for a loan ... starting with where ever one has their bank account.

.
.

Cayce: “… The greater portion of Japan must go into the sea. …. then we may know it has begun …”. www.near-death.com/experiences/cayce11.html
.
"Be kind, for everyone you know is fighting a hard battle" - Plato
.
"Those who are at peace in their hearts already are in the Great Shelter of life." ~ Hopi Prophecy
.
Anonymous Coward
User ID: 817010
United States
12/14/2009 11:03 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
No thats isn't why.
Year applications mortgage originated means you haven't had your mortgage long enough.
You are still only paying off the interest, and have not enough equity in your home.
How much of a down payment did you put?And whats the house worth?
This has nothing to do with the specific year it originated it simply means it hasn't been long enough.
 Quoting: Anonymous Coward 839198



Whatever. just another reason to suck up gov dough and not give anything back.
Anonymous Coward
User ID: 787244
United States
12/14/2009 11:04 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
you mentioned nothing of your credit score.
Anonymous Coward
User ID: 727524
United States
12/14/2009 11:05 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
How about you buy a beater car and own it free and clear?

Or do you need the newest dodad and onstar stuff for your new car?
 Quoting: Anonymous Coward 840994


When you learn to read you will discover the OP was buying a used car with 45K miles on it.
Ricfly52

User ID: 709239
United States
12/14/2009 11:10 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
Friend. The last thing you want right now is an auto loan. If you have a running car, count yourself lucky, and forget a new car. I am telling you the system is going in the shitter soon. If you have a car loan, they will just reposess it, sit it on a lot, and let it rust. That is what greedy people do.

Keep your paid off cars and try and ride out the next three years. It will be very rocky to say the least.
Fishing and skiing keeps me a little sane.
embu
User ID: 830784
United States
12/14/2009 11:12 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
OK, now I have proof that banks are turning down lending for frivolous reasons, just like Barack Obama said yesterday. We got an "Explanation of Rejection" letter for an auto loan in the mail today.

Now I don't want to claim that taking out an auto loan is the best thing to do right now. But our old car was breaking down too much and we found a steal of a deal on a used 45K miles Toyota Tacoma that we can really use to save money on doing some work on our house.

We applied for auto loans -- we have little debt and high income -- but were turned down except for high interest loans. We accepted the high interest loan because it's a simple interest loan that we can pay off early without penalty at any time.

But here's the kicker: we just got the letter in the mail today on why Capital One turned us down for an auto loan, and here's the explanation: "Year applicant's mortgage originated".

So just because we have a mortgage that originated in the past few years (at the height of the housing bubble) they assume we're poor credit risks. Actually, we sold a house in one high-appreciation market and bought another house in a similar market, and use some of the proceeds from the one house as a down payment on the mortgage, which was a low interest simple conventional loan. So we are not under water on our mortgage and we have a low interest conventional loan that is not going to balloon or reset on us.

The fact that we were denied an auto loan simply because of the year our mortgage originated, without any other rationale, supports what Obama said yesterday and what others have been saying: banks are not interested in lending and are making irrational decisions to refuse to lend.

Banks are making more money on Wall Street and options trading than risking lending in a recession they helped create, and their refusals to lend are helping shut down the economy even more.

Excuse my language, but fuck 'em. The whole threat that led to the bailouts last year was that if the banks fail, they can't lend and the economy will shut down. Seems like they're not really lending anyways and as far as I can tell, we should have let them fail.
 Quoting: Anonymous Coward 840970

you've failed to mention the most obvious explanation, they have to turn down loans because their losses are so massive and ongoing, that they don't have the money.

sheeplebah
Doomorrow

User ID: 838774
United States
12/14/2009 11:18 PM
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Re: Banks refusing to lend: Why Our Auto Loan Was Turned Down
why even waste the money on interest for a loan on a fuckin Tacoma with 45K miles?

If you don't have 8 grand, don't get the truck.

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