First rule of thumb....always.... ALWAYS...
. ALWAYS read your contracts before you sign!
As you know I am in the process of getting a privacy fence and concrete patio installed. Of course these items cost more money than I have in the bank so a small loan was necessary. I called my bank about a month ago to get pre-approved for a loan and I got the amount I was needing.
I decided to wait on getting the loan because, first - I didn't want to start paying on a loan to early and since my patio and fence were not going up until mid May I could wait on the loan. Second - there could always be a delay in getting started because of the weather...which there was.
Anyway, the bank called me yesterday because the pre-approval is only good for 45 days and I was getting close to the 45 days. I decided to go ahead and get the money that way it was ready to go. Plus, I didn't want to do the loan application again and ding my credit score.
Remember the whole process is over the phone.
The lady provides me a link to go in and electronically sign. So I go to the link and start to read the document and on the second page of the eight page document is a section called APPLICATION DISCLOSURE FOR DEBT PROTECTION PLAN. Its broken down into Death protection, Disability protection and Involuntary Unemployment protection.
As I am looking at this I notice all three of those were checked which added about $3 per $1000 I borrowed!
RED FLAG!!!
What the???? why is this checked...maybe its a new mandatory fee. With the way banks were loaning money I wouldn't have been surprised. But wait...what does this say at the top of the document...
"THIS PRODUCT IS OPTIONAL"
Hummm, so I call the lady back and asked her why these were checked and if we could remove them. She said, Oh let me see what your file requires. So I start to read her the paragraph....
"This product is optional. Your purchase of the Debt protection Plan is optional. Whether or not you purchase this protection will not affect your application for credit or the terms of any existing credit agreement......"
I didn't even get to finish the paragraph before she said "oh, no problem we can remove that".
Oh, but of course you can. So she removed it, resent it and off I went to finish reading the entire document even closer, then signed.
I'm so glad my dad taught me over the years to read any document I was going to sign. It may take a little time but it also has proven to save me money, just like in this case
Now I just wonder how many people don't read the document and just go ahead and sign on the line. I'm guessing enough that it allows her to keep trying to sneak it in. I'm glad I caught it.