I am taking a personal loan ,the prommisory note calls for a upfont security deposit. They indicated the deposit will be applied to the first 3 payments.this is not specified in the documents. Is this an acceptable practice and what would be the risk.

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Originally Posted by pkropfli

i am taking a personal loan ,the prommisory note calls for a upfont security deposit. they indicated the deposit will be applied to the first 3 payments.this is not specified in the documents. is this an acceptable practice and what would be the risk.

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In what country would this be...

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Originally Posted by smoothy

In what country would this be....

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Us

I have never heard of this practice and seriously question it.

Sounds almost like one of those payday loan shark places...