Report: #18096

Complaint Review: Primerica

  • Submitted: Wed, April 03, 2002
  • Updated: Wed, April 03, 2002
  • Reported By:
  • Primerica
    Duluth, GA
    All Over, Indiana

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Primerica falsely characterizes its loans by saying it saves the client money.
Case in point, my mortgage was at 7.9% when I checked into refinancing and a Primerica representative contacted me. The FNA was done and a loan sheet was returned to me in August of last year.
My payment at the time including taxes and insurance money and PMI was about $1025 per month like I said at 7.9%.

Before it even offered me the Equity Builder (R) program which is just a scam biweekly setup, PFS offered their version of a standard 30 year loan at a higher interest rate than what I was paying. That is their M.O. because they can't compete with the reputable lenders.

Please look at the following in a different window: (cut and paste WILL NOT WORK if you click).

Try to follow along now.

Let's start without the SMART completion plan which is just basically life insurance to pay off my mortgage.

It says that my monthly payment at their fantastic new rate of 8.98% would be $874.45, just for principle and interest. Notice that I highlighted the part where it says this is the "lowest rate for which I qualify".

Keep in mind this lowest rate was 'bought down' with thousands of dollars in so-called 'discount points'. At this time competitive rates in the market were near 7%. I had no other debt involved and I qualified a week later for 7.1% with a real lender. Also keep in mind that this loan had over $5000 in closing costs.

Now, since my old payment was about 1024 with all the fees and taxes and all that, and Primerica's new rate is about 875, the different is about $149. Please note how I highlighted there phrase "MONTHLY SAVINGS". They are characterizing this different in monthly payment as a SAVINGS. Not just money that is deferred payment but a SAVINGS as though I never had to pay it again. I STILL had to pay taxes and insurance but it just wasn't part of my monthly mortgage check. Yet they called it a savings. THAT TO ME IS FRAUDULENT. I AM MOST CERTAINLY NOT SAVING $149 A MONTH WITH THIS FRADULENT SETUP BECAUSE NOW I HAVE TO PAY BOTH MY INSURANCE AND PROPERTY TAXES (about 200 a month) SEPARATELY and the actual cost of owning my home went UP due to the extremely high interest rate.

Remember this has nothing to do with the equity builder program whatsoever. They classify the difference in payment as a SAVINGS. It's RIDICULOUS. There is NO WAY that a >1% increase on the interest rate could ever possibly amount to a savings. What a rip!!

Notice the other phrase which is my favorite which says this is the first phase of making me get to "Debt Freedom and a financially secure future" (the last part even being in italics).

What a bunch of rip off artists. Why do they do this? So their PFA's can sit across the kitchen table from you, proclaim this savings, and then use your so-called "savings" to oversell life insurance and have you invest in their loaded mutual funds. It's rip off at its worst!

I don't care that their loans aren't competitive, but *don't* misprepresent them by calling it a "savings" in order to sell me other junk.

Mediumsizetown, Indiana

This report was posted on Ripoff Report on 04/03/2002 12:00 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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