I recently took out a loan on my 401k and the company I work for is charging me a fee every week so I am paying back the loan, a set up fee, the amount that normally goes into my 401k, and this weekly fee. I would like to know if they are supposed to do this. I would also like to know if it is legal for them to charge this weekly fee. Any answers would be greatly appreciated, also if you know where I could find this information in writing that would be great too.
2006-08-27 08:36:51 · 1 answers · asked by mom0f04 1 in Business & Finance ➔ Other - Business & Finance
I am not talking about the interest, I am taling about a seperate fee that the company is charging.
2006-08-28 01:35:44 · update #1
They are not loaning you your 401K money...they are using that for collateral. You cannot take out your 401K money without penalties until you are of retirement age. The money they are charging you is interest and fees for letting you use THEIR money. If you default, they'll take your 401K money.
2006-08-27 09:06:24 · answer #1 · answered by just browsin 6 · 0⤊ 0⤋
Its called INTEREST for loaning the money out to you.
You want it for FREE?
2006-08-27 08:44:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋