Ramit over at I Will Teach You To Be Rich sent us this heads up about some predatory lending behavior from Volkswagen Credit. Ramit’s friend received a friendly-looking mailing suggesting, “Why Not Skip a Payment This Holiday Season?” The text of the letter reads:
“The holidays…time to give thanks, spread joy and shop for the best sales. Now, here’s the perfect “gift” to help you stretch your holiday dollar. Volkswagen Credit is offering you the opportunity to ‘skip’ your December 2006 payment on your current account listed above.
Upon receipt of your extension agreement, we will assess your account a $25.00 extension fee, payable on your next due invoice. There is no need to send money at this time.
Happy Holidays indeed. We agree with Ramit’s analysis that these letters are targeted to lower income (or irresponsible) borrowers. What a nifty way to bilk people out of $25, not to mention encouraging people to spend more than they can afford at the holidays. We bet Volkswagen is really proud of itself. Have any of you received similar offers from other lenders? —MEGHANN MARCO
Volkswagen targets stupid people, tries to rip them off [I Will Teach You To Be Rich]
Full Scan of the Letter [Flickr]