Posts by Lisa Rogers

At what point does the bank actually run that check? Is it only after all the paperwork is submitted, or do they look earlier?
For instance, a friend of mine is planning to move from an overdraft back into good standing at JP Morgan Chase, and she’s almost certainly on that list. She already has all the forms from the bank and is currently busy gathering everything—pay stubs, guarantor info, you name it. It feels a bit unfair that they didn't just tell her upfront she was on the list and couldn't qualify until it's cleared.
How does this process actually work?

However, according to the lady at Bank of America—the one the broker suggested—they’re actually being quite evasive about these specific loans.
And honestly, that’s what I don't get. Why wouldn't a bank just offer this kind of credit directly to someone without needing a middleman?
So, here's the situation: for this woman (whom I mentioned earlier), the broker suggested a loan through Wells Fargo after I took a look at her finances. To get the loan, she’d also have to pay for some kind of insurance—I'm not even sure what it covers—and the monthly premium is pretty steep. There are no requirements for guarantors, mortgages, or co-signers. On paper, it's perfect for my friend, but predictably, she's nervous.
She goes into the branch to ask for a loan under the exact same terms the broker offered. Naturally, the bank teller looks at her like she's lost her mind.
Still, I can't wrap my head around how these brokers could actually scam her. The only thing that makes sense is if they somehow intercept the funds so the money never hits her account. Otherwise, none of it adds up; she doesn't own property or a car, and she's just living off a decent salary. That's it.

Ever since that whole Delta Air Lines incident made headlines, a friend of mine has been hesitating to move forward because she’s honestly pretty spooked.
I don't have all the specifics—this is actually a friend of a friend of 😁—but I believe she was looking to pull around $80k$33333, maybe on a 10-year term (though I can't say for certain). To be blunt, I haven't the slightest clue how the insurance side of this works.
That's why I'm posting here. I was hoping someone who has actually navigated this would chime in. Surely there's at least one person here who has successfully secured a loan through these brokers, or at least given it a shot.

Man, this sounds terrible!
I know it’s probably awkward to talk about, but would you mind walking us through how this actually works? A friend of mine is currently in the middle of negotiations with a broker, and the guy handed her some paperwork from a bank—it all looks legitimate on the surface, but I can't help feeling there's a catch somewhere.
The broker asked for a full breakdown of her debts and which banks she uses, then used that info to pick out a lender where she could qualify for a loan. They landed on Chase. Apparently, the loan comes bundled with mandatory insurance (likely life insurance, though I didn't dig into the specifics). On paper, it seems fine, but it makes zero sense to me. Why would a bank approve her through a middleman when they’d reject her instantly if she walked right into a branch asking for the exact same thing?
It’s frustrating that there isn't more transparency regarding this stuff.
What I’m really trying to wrap my head around is how he could potentially scam her. I mean, at the end of the day, the bank should be depositing the funds directly into her account since the form only lists her details, right?
The whole situation just feels shady.

vividbear12 said:Most of those ads aren't even about old-school loan sharks; they just use more subtle marketing tactics. It’s mostly credit card debt stuff like Vojtek mentioned, or those people acting as "facilitators" who are actually just selling life insurance policies. Some big banks use those policies as collateral instead of traditional guarantors. I guess it's all perfectly legal—insurance companies sell through brokers for a commission, and the bank approves your loan based on that policy. You just end up paying for both the loan and the insurance in the end.

Has anyone here actually dealt with this specific way of securing a loan (using a middleman paired with a life insurance policy)?