About side loans and stated income at Beneficial Finance

I worked for Beneficial Finance of West Virginia for nearly 2 years. I remember one incident with a customer where we discovered that reported 4.76% origination fee was actually more- it was 5.00%, the fees were on a realitively large lone, and amounted to nearly $700. My manager’s response when I asked him about it was, “Why did the customer have a calculator in the closing room anyways?”

It was my fault that things didn’t add up. Finally my branch manager contacted the district manager, who contacted corporate, and the ultimate response was some jibberish that we did charge 5% because that was the limit in West Virginia, but it showed as 4.76% because the extra $700 plus dollars was interest accrued on the 4.76% bringing it to the legal total of 5%. It did not make any sense, and probably doesn’t to anyone who reads this.

We were taught to pressure sale, people were given “side loans” which were personal loans for 10-15k dollars at 18% interest rates in addition to the mortgage. We never had to prove income for high interest, large personal loans, sometimes up to 15k dollars. We were allowed to use “stated income” which could be unverifiable or questionable.

I am certain some customers probably caught on and manipulated the system to get what they wanted. We were paid great by the company, but it was shady through and through.