Finance companies and PMB address changes
Has anyone had a finance company pitch a fit when you changed your mailing address from a physical address to a mailing service such as the ones in South Dakota?
Forum Discussion
16 Replies
kcmoedoe wrote:
What does a financial institution do when a person lives in a town where there is NO mail delivery except to a PO Box? The only "physical" address is maintained by the FD/EMS and is NOT used by anyone else. Funny, but I have a credit score in the top 5% and have recently received several loans(mortgage & vehicle) with ONLY a PO Box address.
As a banker, I can tell you it absolutely matters. First, the Patriot act requires that any new account be tied to a physical address, not PO boxes. Second, all financial institutions use internal scoring systems that may be proprietary, but are all based on standard credit scoring algorithms that consider residency type when calculating an aggregate score. A PO box would be just about the lowest scoring option one could choose lowering the overall score. It is only one piece of the much larger puzzle, but it does have a negative effect.- SD is different. I am a verified legal SD resident with a little gold star on my drivers license. It just happens that my physical address happens to be a PMB. The apartment I live in at the 514 Americas Way address just happens to be very, very tiny!
- As a banker, I can tell you it absolutely matters. First, the Patriot act requires that any new account be tied to a physical address, not PO boxes. Second, all financial institutions use internal scoring systems that may be proprietary, but are all based on standard credit scoring algorithms that consider residency type when calculating an aggregate score. A PO box would be just about the lowest scoring option one could choose lowering the overall score. It is only one piece of the much larger puzzle, but it does have a negative effect.
- Honda Financial gave us a new vehicle loan at a great rate a few months ago using our PMB address. So not knowing where the vehicle actually is must not have spooked them.
- We did and they didn't say anything. We just did the change of address. We just put # rather than the letters PMB. It's just like an apartment number. Bumpyroad makes a good point.
- they probably used your home as part of your net worth, etc. in calculating out the loan. if you no longer own that asset you are a worse credit risk.
bumpy
