[MACABBO]

I was approved over the phone for a personal loan (My intent is to consolidate my credit cards). I'm now being told to bring my credit card statements so the junior loan officer can get the addresses to mail the checks. This is something I'd prefer to do myself - online. The underwriter is on vacation until next week - junior person seems unable to answer my questions. Can a credit union monitor/control how you spend the personal loan they approve you for?

[excon]

Hello M:

It's a little strange, but there no LAW that stops them...

excon

[ebaines]

My guess is that the credit union's loan is contingent on it being used specifically to pay off other debt, so that your toatal debt doesn't go up. If you use the loan to buy a car your debt load would go up, and your credit score would go down. So by them paying the debts directly they're assured that the loan is used for what it's intended.

[joypulv]

It sounds like you took out a debt consolidation loan. I don't even think there's any such thing as a 'personal' loan with no strings attached anymore. No one is going to give you such a loan when you have a lot of debt anyway. So yes, get ready to have the bank make the payments. When you enter into any business arrangement you should get it in writing, not on the phone.