spain Posted March 8, 2007 Share Posted March 8, 2007 (edited) I get mortgage payments deducted from my checking account twice per month. Having it done that way means you are actually making one extra months worth a payments per year. So, instead of making 12 monthly payments each year, I am making 13. Thats a good thing as it comes straight off the principal. Well, I get a notice from my mortgage company, Countrywide Home Loans, that they will now be charging $4.00 per draft, for a total of $8.00 per month, just to be enrolled in this "service plan". They dont even have to do anything to draft my acccount. And it saves them money, since they dont have to have somebody open the mail, record my check, take it to the bank etc. It is set up automatically and they just collect my money electronically. So, I call them and tell them that I aint $8 a month for something that benefits them. They said, "sorry" thats the way it is. So, I went back to the regular 1 payment per month draft. She did say that I could pay extra anytime I wanted too, and it wouldnt cost me anything. So, I say, why would I pay you $8 per month, when I can get the exact same benefits for free? She didnt know and didnt really care. I am just pissed that they try to gouge me, for a service that actually benifits them as much or more than it does me. Ok, off my soapbox. Carry on! Edited March 8, 2007 by spain Quote Link to comment Share on other sites More sharing options...
cliaz Posted March 8, 2007 Share Posted March 8, 2007 I have countrywide home loans and they waved the fee for me. You got screwed. Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 I have countrywide home loans and they waved the fee for me. You got screwed. No, they got screwed. Quote Link to comment Share on other sites More sharing options...
cliaz Posted March 8, 2007 Share Posted March 8, 2007 I've been a huge fan of Countrywide for the most part. Very helpful and take care of any issues i've had. I'd call back and talk to another person about it. Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 I've been a huge fan of Countrywide for the most part. Very helpful and take care of any issues i've had. I'd call back and talk to another person about it. I like Countrywide too, dont get me wrong. But this horse Sega! about $8 a month to make their lives easier dont fly with me. I aint calling back. If I want to make an extra payment at the end of the year I will. If I dont I wont. They are the one's who brought the "payplan/26" to my attention in the first place. Now, a year and a half later they jacked up the price. So, obviously they want people enrolled it since they promote this "service". No f'n way!! Quote Link to comment Share on other sites More sharing options...
cliaz Posted March 8, 2007 Share Posted March 8, 2007 I like Countrywide too, dont get me wrong. But this horse Sega! about $8 a month to make their lives easier dont fly with me. I aint calling back. If I want to make an extra payment at the end of the year I will. If I dont I wont. They are the one's who brought the "payplan/26" to my attention in the first place. Now, a year and a half later they jacked up the price. So, obviously they want people enrolled it since they promote this "service". No f'n way!! Hmmmm. I just google earthed your house. What do you do for a living, kill people? Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 Hmmmm. I just google earthed your house. What do you do for a living, kill people? sometimes. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted March 8, 2007 Share Posted March 8, 2007 i ran into that with my most recent car note, with chase, where it cost extra to submit regular electronic transfers than it did if you went the old check-stamp-envelope route. i can't really surmise why they do this, but my best guess is that it has something to do with float time, when the money hits your account and when they can charge you interest on it. i bet in the long run, it's actually to your advantage to pay the 8 bucks a month, but who knows. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 8, 2007 Share Posted March 8, 2007 i ran into that with my most recent car note, with chase, where it cost extra to submit regular electronic transfers than it did if you went the old check-stamp-envelope route. i can't really surmise why they do this, but my best guess is that it has something to do with float time, when the money hits your account and when they can charge you interest on it. i bet in the long run, it's actually to your advantage to pay the 8 bucks a month, but who knows. doubtful--it would probably be in his best interests to just take that 13th mortgage payment and put it into a mutual or index fund. (although we've been through this before) Quote Link to comment Share on other sites More sharing options...
xMRogers Posted March 8, 2007 Share Posted March 8, 2007 wait - so if you do biweekly drafts, they charge you $4 per draft, but if you do monthly, they don't charge anything? That's the dumbest thing I ever heard.... Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 wait - so if you do biweekly drafts, they charge you $4 per draft, but if you do monthly, they don't charge anything? That's the dumbest thing I ever heard.... I couldnt get her to explain it to me with any degree of clarity either... Quote Link to comment Share on other sites More sharing options...
Furd Posted March 8, 2007 Share Posted March 8, 2007 My mortgage guy just called me out of the blue. Quote Link to comment Share on other sites More sharing options...
xMRogers Posted March 8, 2007 Share Posted March 8, 2007 Yea - I understand a company looking to charge for drafts possibly (for the longest time, the idea was "drafts are much better than checks cause of float time and no collection worries, plus no paper handling costs", but we've realized that due to the number of issues with people closing accounts and not balancing correctly, our NSF/closed account bounces far outweigh the old costs involved - that is completely dependent on the custoemr base you have - my bankrupt company has a Sega!ty one) but to charge for biweekly (and not a small amount) but not monthly - that's just dumb.... Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted March 8, 2007 Share Posted March 8, 2007 spain, i don't think they're trying to charge you based on the frequency of your payments, it is the method of payment. if you write them a check every two weeks, no charge. if you auto-deduct direct from your bank account once a month, they will charge you. Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 spain, i don't think they're trying to charge you based on the frequency of your payments, it is the method of payment. if you write them a check every two weeks, no charge. if you auto-deduct direct from your bank account once a month, they will charge you. Incorrect. If I only get them to draft it once per month, there is no charge. If I send them a check, once per month there is no charge. Its the bi-weekly method that they are charging for. The reason for the charge is that they are losing interest they would have earned if you pay off your mortgage early. The bi-annual method allows you to cut alot of interest off. They are trying to re-coup some of that lost interest by gouging you. At least, thats my theory... Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted March 8, 2007 Share Posted March 8, 2007 Just be happy thats the least of your worries...Countrywide is a hell of a lot better than many other lenders... Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted March 8, 2007 Share Posted March 8, 2007 Incorrect. If I only get them to draft it once per month, there is no charge. If I send them a check, once per month there is no charge. Its the bi-weekly method that they are charging for. The reason for the charge is that they are losing interest they would have earned if you pay off your mortgage early. The bi-annual method allows you to cut alot of interest off. They are trying to re-coup some of that lost interest by gouging you. At least, thats my theory... didn't you say she told you you could pay extra anytime you wanted to, no charge? Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 8, 2007 Share Posted March 8, 2007 Incorrect. If I only get them to draft it once per month, there is no charge. If I send them a check, once per month there is no charge. Its the bi-weekly method that they are charging for. The reason for the charge is that they are losing interest they would have earned if you pay off your mortgage early. The bi-annual method allows you to cut alot of interest off. They are trying to re-coup some of that lost interest by gouging you. At least, thats my theory... uh, if you are convinced that paying an extra month's worth of payments each year is a good thing, why don't you just increase the amount of your monthly payment by an extra 8 1/3% and be done with it? Quote Link to comment Share on other sites More sharing options...
spain Posted March 8, 2007 Author Share Posted March 8, 2007 didn't you say she told you you could pay extra anytime you wanted to, no charge? yes, they will auto-draft my account for free if I am on their "regular plan" which deducts it only once each month. But if I get on the auto-draft twice per month, it will cost me $4 per pop. Quote Link to comment Share on other sites More sharing options...
johnsonk2 Posted March 8, 2007 Share Posted March 8, 2007 wait - so if you do biweekly drafts, they charge you $4 per draft, but if you do monthly, they don't charge anything? That's the dumbest thing I ever heard.... my take is that they probably offer this initially as a free service and then implement the fee later thinking that most schleps will just continue on with the draft and now they have magically profited $96 per participant. And another thing to remember is that by paying bi-weekly you are reducing the amount of "interest" you are paying on your mortgage, and "interest"="income" to the company, so they really don't want you pay off your mortgage early, they'd rather us all just continue to accept what they give us and not be informed consumers at all! Quote Link to comment Share on other sites More sharing options...
geeteebee Posted March 8, 2007 Share Posted March 8, 2007 ABN-AMRO does the exact same thing, although I think they charge $12.95/mo. to be in the bi-weekly program. I am sure that it has something to do with them making more money the longer the loan is outstanding with a higher principle balance, but it doesn't make much sense to me. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted March 8, 2007 Share Posted March 8, 2007 Countrywide Home Loans, i ran into that with my most recent car note, with chase, I've had both these companies and had the exact same experience - they want to charge you more for electronic systems usage. Anyone come across the Ticketmaster "print your own tickets at home" function, which they charge you $1.50 for? So, lemme see, you want to do something that costs you nothing while using my paper and my ink and charge me $1.50 for the privilege? Nah, f*ck off - send me the tix via mail, which is free. Quote Link to comment Share on other sites More sharing options...
Tford Posted March 8, 2007 Share Posted March 8, 2007 Anyone come across the Ticketmaster "print your own tickets at home" function, which they charge you $1.50 for? So, lemme see, you want to do something that costs you nothing while using my paper and my ink and charge me $1.50 for the privilege? Nah, f*ck off - send me the tix via mail, which is free. That option is only clicked if the event is less than a week away. Agreed, total screw job. Quote Link to comment Share on other sites More sharing options...
BeeR Posted March 8, 2007 Share Posted March 8, 2007 i ran into that with my most recent car note, with chase, where it cost extra to submit regular electronic transfers than it did if you went the old check-stamp-envelope route. i can't really surmise why they do this, but my best guess is that it has something to do with float time, when the money hits your account and when they can charge you interest on it. i bet in the long run, it's actually to your advantage to pay the 8 bucks a month, but who knows. Chase blows worse than a typhoon, don't even get me started. Their "customer spt" makes AT&T and Comcrust look good. Well that's impossible of course but you get the idea. Oh you want bogus fees, try belonging to a bank that decided to charge a buck every time I use my DEBIT CARD. But really the whole way mortgages are done is a ridiculously complex joke, made so just to d*ck you out of money thru a wide variety of BS "fees" etc. Quote Link to comment Share on other sites More sharing options...
BeeR Posted March 8, 2007 Share Posted March 8, 2007 I couldnt get her to explain it to me with any degree of clarity either... How long have you had this delusion that most help desk/"customer service" people don't belong flipping burgers somewhere? Quote Link to comment Share on other sites More sharing options...
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