We’re in a time of record financial growth and we’re seeing unprecedented demand for advanced communications equipment.
But many of us who buy communications equipment for our homes have questions about whether it is the right thing to do, and what the long-term implications might be for our financial future.
The first step is understanding what it takes to get the equipment you want.
Here are five common questions and some answers:1.
Is the equipment a loan?
A loan typically involves paying a fixed amount of money, usually in installments, for the equipment.
Some of the equipment loan companies offer a loan guarantee, while others offer a cash-back option, or a combination of both.
Some loan companies also offer a prepaid service, but it’s unclear whether this is required for the loan.2.
Will I be able to get a loan for the whole house?
Most equipment loan applications are considered “qualified” by the loan company, and can’t be refused, but some are denied outright.
If you can’t get the loan for your entire house, consider the following questions:Does the equipment have to be in the house?
Is it a separate property?
Is there a special condition that needs to be met?
Does it have to meet certain specifications?3.
Can I borrow money to buy the equipment for a single use?
If your loan includes a provision that says you can borrow money for a particular use, the equipment can be used in a certain amount of time, and it’s generally assumed that the loan will cover that use.4.
Can the equipment be replaced after a certain period of time?
Yes, depending on the equipment and the length of the loan, and the equipment’s performance.5.
How much will it cost?
Some loan companies charge a nominal “purchase price” for their equipment.
This is usually the price that the lender would pay for a similar type of equipment.
If the equipment is loanable, the loan typically includes an amount of cash equal to the cost of the device plus a percentage of the purchase price.
For instance, if the loan includes an “initial” purchase price of $1,500, the purchase rate will be $200.5, however, if you pay the purchase-price plus 5% of the original purchase price, the total purchase price would be $2,500.
The total purchase cost is the same as the loan price, but the loan amount is increased by 5%.
This is called the loan principal amount.
For equipment loan firms, the primary loan amount for a given type of loan is called a “bond” and it varies based on the type of device you’re looking to borrow.
For example, a loan might only require a 5% loan, or 10% loan.
For loans that require more than one loan, you might need to negotiate a higher or lower loan principal.6.
Will the equipment cost more than what I paid for it?
If the loan covers a lot of equipment, the payment will generally be lower than the purchase cost.
This could be due to the equipment not being available or it could be because the loan doesn’t specify a “reasonable” loan repayment rate.
If that’s the case, the amount of the payment could be more than the equipment itself.7.
What if I’m looking for an “excess” equipment loan in my state?
In some states, if equipment is sold for a significant portion of the value, the sale is subject to the federal Fair Debt Collection Practices Act (FDCPA).
If you qualify for the FDCPA, you can apply to have the loan discharged.
The discharge is usually approved by the Federal Trade Commission (FTC), which regulates how much equipment is marketed to the public.
For more information on how to contact the FTC about a claim made by the FTC, see our section on the FTC’s consumer complaint procedures.8.
Will my loan be forgiven if the equipment becomes useless?
In general, the FDOPA generally doesn’t affect equipment loan applicants, but certain types of equipment may be eligible for an extended warranty.
For instance, equipment that’s sold in a “manufactured” state may be covered by a warranty if the manufacturer has maintained the equipment in good working order for at least six months.
However, if a product is sold to a person who has been convicted of a felony, the manufacturer may be barred from selling that particular product for six months from the date of the conviction.
A manufacturer may also be barred if the owner has violated the terms of a written warranty agreement.9.
What happens if the FDI loan is denied?
If you get denied a loan to buy a particular type of communications equipment, you may have the opportunity to sue the company for damages.
If a court grants a motion for summary judgment, you’ll get a copy of the settlement and your right to be represented by an attorney, as well as your right for the court to enter an order dismissing the case.