Citizens Loan??

Question

Level 1

9 points

Citizens Loan??

I recently upgraded from an iPhone 7 Plus to a iPhone 8 Plus and was told that once I did the trade in, my citizens loan balance would essentially disappear. I just got an email notification that tells me I still owe a certain amount of money on the account and due to a late payment (since I was told that I didn't need to pay it) it has now gotten to the point of affecting my credit. Or so I'm told. Any way to fix this, I've contacted both parties with no avail.

Edit: There's no specific place to put this, which is absurd.

Posted on Dec 15, 2017 12:41 PM

Reply

Answer 1

Best reply

anypats

Level 7

21,283 points

Dec 15, 2017 1:27 PM in response to NyDky

I am assuming you're talking about the iPhone upgrade program.

You buy the iPhone 7 Plus and Apple Care and that is split into 24 monthly payments
After you have made 12 payments you can trade in your iPhone to get a newer one
The original loan disappears and you sign for a new 24 month loan on your new iPhone 8 Plus

The only way I know of that the original loan wouldn't disappear is that you hadn't yet made 12 payments on the iPhone 7 Plus. Apple will allow you to upgrade after 6 months but you have to pay for another 6 payments on the original loan since 12 payments must be made.

My guess here is that you weren't aware that you were entering into a new loan on your iPhone 8 Plus.

Reply

Answer 2

madra31

Level 6

9,940 points

Dec 15, 2017 12:49 PM in response to NyDky

When you bought the iPhone 7 the program gave you the opportunity to pay over 24 months and also to trade in the phone and get a newer model should you so choose. Any such decision would increase the outstanding balance.

The fact that you traded in the iPhone 7 and effectively took out an additional line of credit to cover the difference between the price of the iPhone 8 and the balance due on the iPhone 7 less the trade in value of the iPhone 7 means you still have an unpaid obligation.

You need to bring you payments up to date including the late payment and pay off the remaining balance as scheduled.

Review the documents you were provided and the details of the amounts involved will be indicated.

Reply

Answer 3

NyDky Author

Level 1

9 points

Dec 15, 2017 6:52 PM in response to anypats

I definetly have 12 payments on it. I only owe 227 is on it as of now. I just recently got the iPhone 8 Plus a month or so ago and I got an email recently stating that I still owed money toward that loan. The loans are different, One was under my mother name (iPhone 7 plus) and the one that I just got is under mine.

Reply

Answer 4

anypats

Level 7

21,283 points

Dec 16, 2017 6:32 AM in response to NyDky

Well that makes sense. The old loan only goes away if you sign a new loan under your name and continue on with the upgrade program. By not continuing to make payments on your loan you got trade-in value for your iPhone 7 Plus and as the trade-in was less than the amount you had paid there’s still a balance due. The way Apple looks at it is your mom is a new customer first starting out on the upgrade program. They see you as someone that just traded in their iPhone. Had you signed the new loan then old loan balance would have gone away.

The same thing will happen next year if you want to put the loan back in your name. The upgrade will need to be under your mom’s name or you get trade-in value for the iPhone 8 Plus and there would still be a balance due. The upgrade program isn’t transferable from one person to the next.

Reply