More Apple Loan Stories!!!!!

More Apple Loan Stories from macintouch.com:




Date: Fri, 25 Jan 2002 11:42:48 -0500
From: [MacInTouch reader]
Subject: Re: Buyer beware w/ Apple financing.


I ordered an iBook 14" a couple weeks ago by calling 1-800-MY-APPLE. I was told that they are offering 9.99% instant financing for 48 months. I was approved and then placed my order. The Apple sales rep put me on the phone with MBNA, Apple's finance company, to confirm my address. I was immediately approved, and assumed I was getting the 9.99% interest rate.

I later received an invoice from Apple, and an agreement from MBNA, neither of which specified my interest rate. Concerned, I called Apple customer service today and they referred me to MBNA.

I called MBNA and was told that they reviewed my credit history and changed my interest rate from 9.99% to 26.4%. I was told that the rates they offer are "as low as 9.99%" but that they are free to change my rate at any time for any reason. (At least credit card companies usually only change your rate if you are late with a payment!)

I reviewed the fine print on the Apple Web site (something I had not looked at before placing my order). It says: "MBNA will set your APR between 9.99% and 26.99%. The APR is not guaranteed and may change. In most cases, a change in the APR will restart your repayment term and change your minimum monthly payment."

Details appear on [a dynamic link off of the Apple Store Web page].

This language gives Apple's finance company the ability to change your interest rate at any time, for any reason, and even restart your payment term when they do so.

I am not sure if these legal terms apply to me since I did not order over the Web, nor was I told the terms before I was given credit. I am looking into this.

Instant financing is great, but people should be aware they might be getting hit with a *huge* interest rate without their knowledge.




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Jan. 29
Date: Sat, 26 Jan 2002 17:38:29 -0500
From: Stanley SFC Harvey
Subject: Apple Loan Issue


The Fine Print issue stated in a note from one of your readers may be misleading in its intent. All loan agencies that offer low-interest loans have this same qualifier. The only way to get the reduced interest loan is to have a good credit rating. Late payments (>= 30 days), bad checking habits, no previous credit, etc that go back at least 5-7 years are taken into account. Speaking strictly from experience (my loan rates are about 23%) you really need to keep a close watch on your spending / credit habits. Once your credit history starts to get points against it, it is difficult to recover except over time. Another point to look at is the 180-days same as cash. If you pay it off in 180-days you pay no interest. After 180-days the last 180-days interest is added back into to the loan as if you were paying it all along. The only way to actually reduce the interest paid is to pay the loan off early and ensure that there are no early pay-off penalties (there are none in the Apple Loan).

sh




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Date: Sat, 26 Jan 2002 22:08:13 -0500
From: Frank
Subject: Apple Loans Canada


On the Canadian site, we also see the offer for a 9.99% Instant Financing however, upon reading the fine print the lowest rate available for Canadian residents is 14.99% and not 9.99%. As with the US offer, MNBA has the discretion to set the rate, in this case between 14.99% and 26.99% depending on the applicant's credit history. One hopes that a buyer is made aware of the *exact* rate before locking themselves in.

Keep up the great work, Frank Piccolo




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Date: Sun, 27 Jan 2002 16:31:46 -0500
From: Chris Bailey
Subject: Apple Loan


I, too, applied for an Instant Loan to buy one of the new iMacs. I was surprised to see that my loan was approved, but at 14.99%. When I called MBNA to see why I had been given the higher rate -- as far as I knew, my credit history was excellent -- the rep said that the 9.99% loan is only for the "cream" of the borrowing community -- people with 30-year loan histories and excellent credit ratings. He said, in fact, he would have been more surprised if I *had* gotten the 9.99% rate.

Charles "Chris" Bailey






Date: Mon, 28 Jan 2002 11:18:08 -0500
From: Larry
Subject: Apple Loan


I ended up with 12.99%. From what I'm hearing, I guess I'm lucky

No matter. I fully intend to have it paid off before the 6 month interest-free period ends anyway.

-Larry





Date: Mon, 28 Jan 2002
From: [MacInTouch Reader]
Subject: Re: Apple's Loan program


When I found out that Apple's Loan program was going through MBNA, I knew I'd never ever use it. I was unfortunate enough to get into large amounts of credit card debt and two of the cards happened to be through MBNA. They were the worst company to deal with. I went through CCCS to get out of debt and every month they had to call MBNA and tell them to stop jacking around the interest rates. Eventually CCCS got so fed up dealing with them, they arranged for the balances to be transferred to another credit card company who was more willing to deal with CCCS and follow the rules.

After I got out of debt, I contacted MBNA and told them to never ever mail me anything about getting a card through them. I was so vehement that they put one of the senior supervisors on the phone who apologized profusely. Thus far, I've never received anything from them and it's been two years so at least they did one thing right.





Date: Mon, 28 Jan 2002 10:38:15 -0800
From: Shawn King
Subject: Follow up on Apple Loans


"Chris Bailey seconded an earlier note about the misleading nature of Apple's "low-cost loan" sales pitch:"

I think the characterization of this as being "misleading" is very unfair to Apple. After all, others have been doing this with impunity for years and we accept it as part of the marketing hype.

Look at car companies and their advertising - "No money down! 0% financing! Take delivery today!" We see those ads all the time and then, in small print at the bottom - "On Approved Credit".

What Apple Is doing is no different but because too many of us seem to think that Apple is that cool old Uncle who gave us a deal on our first car and we can't understand why he won't do it again.

Apple is a company, in business to reduce risks and maximize profit. Giving *everyone* 9.9% financing would do neither of those things.

Shawn King






Date: Mon, 28 Jan 2002
From: [MacInTouch Reader]
Subject: re: Apple loans


As someone who's recently signed up for one of these loans, I think there are two things that are important to note about this program:

1. Interest (at whatever rate you are assigned) and finance charges accumulate during the "180-day same-as-cash" period.

2. These charges are waived IF you make your first scheduled payment in full and on time.

Presumably one could take the loan, have 6 months without payments, and then pay off the entire loan with a credit card, thereby transferring the balance to an account with a (potentially) lower rate.

Best regards,

Carson Miller






Date: Mon, 28 Jan 2002 18:31:10 -0500
From: derek fong
Subject: More on Apple's Instant Loan program


I've been reading with interest (no pun intended) the recent postings about the Apple Instant Loan program. I guess the moral of the story (especially where there are asterisks involved) is to always read the fine print. With such a wide percentage gap (9.99% to 26.99%), it's always almost certain that most customers will not qualify for the lowest possible rate.



Hopefully this will get fixed soon.

Derek Fong





Jan. 30
Date: Tue, 29 Jan 2002 11:03:32 -0700
From: Larry Orr
Subject: Apple Loan fiasco


I also tried to get the 9.99% loan rate, but was accepted at 14.99% so I refused the offer. I am 54 years old, married once and still married (32 years). My credit history goes back more than 30 years with no bad marks. I have been employed by the 6th largest US university for 15 years. I would be very interested in finding out just exactly what one would have to be to get the 9.99% rate -- president of ENRON perhaps?

By the way, several days after I refused the offer, I received a letter by mail from MBNA asking me if I would like to reconsider. I tossed it in the trash as my credit cards already have lower rates than what they were asking.

Larry Orr





Date: Tue, 29 Jan 2002 10:49:18 -0500
From: Phil Benware
Subject: Re: Apple Loan


A couple thing to watch out for with the Apple Loan. Even though my wife explicitly did NOT request the Credit protection, it was applied anyway, at a charge of $.085 per hundred. Also, when she got her second bill, the interest for the month had put her over the credit line (the credit line was relatively low, and she spent almost all of it), thereby causing an additional charge for being over the line. Some pretty sneaky, albeit apparently legal, practices.

Phil Benware




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Date: Tue, 29 Jan 2002 10:13:03 -0500
From: fsteele
Subject: MBNA


As annoying as the "floating" interest rate is, the worst thing is getting blank checks every month or so from MBNA encouraging me to use them to "take advantage of my credit line." I have written them and asked them to stop sending these -- the mail in NY is never entirely secure -- but they haven't. I agree that this is a common practice in the credit business, but I wish Apple were a little more selective in who they get into bed with.

Fintan R. Steele

 

Sam,

I got Apple Instant Loan for a year and they orignially gave me 14.99% APR. After a year, they lower my rate to 12.99% fixedand they told me that's the best they can do for me. I like MBNA and their customer service is nice. 0% APR for 6 months if you can pay it off within six months then it is a good deal. The computer cost $3000-5000 and they may not pay it off within 6 months.



Ron.