Family and Consumer Sciences
Maryland Cooperative Extension Service

Automated Loan Machines (ALM)

The Consumer's Almanac
Consumer Credit Education Foundation
Washington, DC

Many financial institutions are making loans through an automated loan machine(ALM). These machines are being placed in financial institutions, large retail outlets, and shopping centers nationwide. ALMs allow credit-worthy consumers to obtain loans in amounts ranging from a few hundred dollars up to $10,000 without having to face a loan officer. Generally, the interest rates for loans made through ALMs are the same as for conventional loans. Using an ALM is relatively easy:

 

L You provide identifying information, such as credit card numbers, driver's license number, address, telephone number, and the dollar amount you want to borrow.

 

L The ALM verifies the information.

 

L You provide information on income and employment. If this meets the lender's requirements, the ALM electronically obtains your credit report.

 

L The ALM applies the lender's credit requirements to the application.

 

L If your loan is approved, you select a repayment option that fits your budget.

 

L You read documents pertaining to your loan on the screen, then sign them with an electronic pen. The ALM prints the loan documents.

 

L You have the option to receive a check or an electronic deposit in your account.

 

ELECTRONIC BANKING

 

Automated teller machines (ATMs) use computer and electronic capabilities as a substitute for checks and other transactions. This provides the convenience of 24-hour access to cash by allowing you to:

 

L Bank at any time of the day or night.

 

L Make direct deposits or withdrawals from your checking or savings accounts on a regular basis. Arrangements can be made to have your bills paid automatically. You must authorize transactions in advance for this service.

 

L Telephone your financial institution with instructions to pay certain bills or transfer funds. You must authorize transactions in advance for this service.

 

L Pay for purchases with a debit card. The involves an immediate transfer of money from your bank account to the store's account.

 

ATMs help save time.

Remember, a convenience fee may be charged if

you're not a customer of the bank.

[ MONEY 2000 ]

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