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Unicorn Financial Services Informative - Beware of "Interest Free" Loans

Review by montanamike on 2007-12-09
CAROL STREAM, ILLINOIS -- I had a large dental bill and my dentist offered Unicorn Financial Services as a means to pay it off. Unicorn's statement is that it is no interest financing as long as you make the payments on time...if not, the high interest rate of 24.75% will be charged from the beginning of the contract. I made 9 monthly payments on time with no problem and only had 3 more payments to make. I mailed my next payment well in advance, but Unicorn claims they never received it. It has now been more than a month and the envelope with my payment has not been returned to me by the U.S.P.S., so where is it? I have talked with a manager at Unicorn and his view is that I entered into the contract and did not follow through and now I must pay big time. My view is that I made my scheduled payment and I am being ripped off by Unicorn Financial Services!!!!!!!! I was charged a late fee of $39.00 and informed I would now be charged the high interest rate from the beginning of the contract.

I think Unicorn plans on problems like this to make their money. They do not offer any way to make your payments on-line or have it taken directly from your checking account or credit card. Now I see why!!!!!!!

In my 60 years of life I have never dealt with a company like this. The saying "If it sounds to good to be true, it probably is" certainly applies to Unicorn Financial Services.

I have issued complaints with my state Attorney General and the Chicago BBB.

I will also be contacting my dentist and advise him to quit offering the services of Unicorn Financial Services. And, I will contact my union and let them know of this scam so that they may inform other unsuspecting members.

I urge everyone to take caution with companies like this.
Comments:4 Replies - Latest reply on 2007-12-10
Posted by tnchuck100 on 2007-12-09:
Has your check cleared the bank yet?

The only way to protect yourself from this is by sending your payments certified mail/return receipt requested. I agree, this sounds like a deliberate set up on the part of Unicorn Financial. Problem is, it can't be proven.

Telling your dentist not to use them will likely do no good. My guess is he gets a kickback in some form in this situation.
Posted by montanamike on 2007-12-09:
Thanks for your advice. No, my check has never cleared the bank and I have not put a cancel payment on it. I figure the only one who would have received the check is Unicorn and if they might eventually cash it, they would be owing me money. Also, every payment I made after the one in question was sent by certified mail including the last payment which was only for interest between the sending of their bill and the receipt of my payment which amounted to less than $4.00 (it cost me more for sending it certified than what the bill was for, but at least I had peace of mind).

And you are right about the dentist, but the dentist will not get any more money out of me if I discover they are still using Unicorn Financial Services.
Posted by Anonymous on 2007-12-09:
Another alternative is to use Bill Pay from your own bank. That way, you have proof of when the payment was made and received. Never, however, give your bank information to a creditor in order to allow them to take payments from your account.
Posted by Ponie on 2007-12-10:
Right you are, Ken. I pay all my bills that way. Only thing I have as automatic deduction is my monthly health insurance premiums. Don't expect any problems with them since it's been this way for about 8 years. Otherwise, I never, ever, give anyone access to my bank account(s).

To the poster: In regard to Unicorn's planning on problems like this to make their money, every lending institution works in this manner. They make money on loans, in addition to fees for late payments. This is how they stay in business. If you used online banking, it wouldn't have cost you the $4.00 you paid for a certified payment.

Start using online banking to avoid situations such as this in the future.

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