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I think they are breaking the law.

July 7th, 2008 at 01:46 pm

I have a horrible car {loan} company. We got the car when our credit was not so hot. We are upside down, and will just have to live with this mistake for a while.

Anyway- for the first 2 years, we were almost always 30 days behind (we always made the payment before it was due again - so our credit report is clear of ticks). In our loan agreement (never saw this) - they say the loan I have allows them to charge interest for every day it is late. All of that $$ is added to the very last payment. They mentioned to me a few months back that my final payment is over 2K and growing. I hate it. This company does not provide online statements or acct information. I get a paper bill from them each month, if I am lucky.

I've been able to catch up a few times, most recently two weeks ago (we were okay from Jan-May, but then was late for June's payment). I did Online Bill pay and took care of the payment. BofA said they mailed it on June 17th. Bad Loan Company said they posted it on the 24th. Not too bad. Except, the 24th is the same day it cleared my account. I do not think Check 21 was involved, and the actual check was what clear my account (not an ACH). Well, on the 17th, I initiated another Bill Pay for the July payment (over 12 days early). It still hasn't cleared. They (Bad Loan Company) says they haven't recvd it. Meanwhile, because it's now after the 2nd, they are charging me interest every day, and will charge me a late fee on the 10th.

{keep reading, I am getting to the point!}

They said they use a 3rd party to process payments. And they can't help if it takes a while. But what abt the interest I am being charged? They say they don't have a # they can call to see if my payment was received. I even spoke with a supervisor.

I think they are purposely holding my payments to charge late fees and interest.

Of course, the supervisor said "No!, why would we do that?"

I answered, "To charge me more money!"

I have an inquiry into BofA - but this just makes me so mad (I've never had this happen before). I feel like my hands are tied. This is a stupid company.

I have my Honda thru Honda Finance, (and all of my previous vehicles thru Ford) - I need to be able to see things, I need Online Account access.

I know if BofA caused an error - they will take care of my fees. But, what about this 3rd party? I am going to have no choice but to Western Union my payments each month. Grrr.

5 Responses to “I think they are breaking the law.”

  1. creditcardfree Says:

    I think you are right...you need to find another way to make the payments so they can be tracked. At least temporarily. Best of luck!

  2. merch Says:

    If the 3rd party is in the wrong, I would send them copies of when things went to them. Your responsibility is to send the funds to them by the due date. Their responsibility is to process the check in a timely manner.

    If they refuse, I would send a certified mail to them with the above noting that you want the interest reversed, the information taken of your credit reports, and you want a check for the amount of ordering your credit report. Next you want them to send you a detailed payment history of your account with the pay off amount. If your request is not full filled to your standards, you will be contacting the BBB and the attorney general (and maybe the local press). And give them a time frame of 2 or 3 weeks. (August 1st sounds like a good day.)

    They want to play hardball. We can play hardball. Get all your ducks in a row and then go after them.

    By the way, the history request makes it look like you are going to match up the previous payments to when you sent them. It creates a nice threat without saying anything.

  3. Debt Dummy aka Jaime Says:

    Merch, you are quite lovely. Thankfully, my credit report is spotless on this vehicle (I learned how to play the "game" a long time ago). But, you are right - and that is exactly what I am going to do.

  4. sillyoleme Says:

    That sucks, I hate when companies don't have online access or more "real time" ways to pay. Is there anyway you can refinance the loan with a better place, even if it's not a better rate?

  5. scfr Says:

    Other than Western Union, are there other ways you can pay?

    - Snail mail (plain old fashioned checks sent in the mail)?

    -Drop payment off at their office?

    I also noticed that some payments done on-line took quite a bit of time to post ... several days after funds had been deducted from my account. I asked my personal banker about it and, bless his heart, he replied very honestly and said: "We don't allow our customers to float funds, but apparently we banks can do it."

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