[wardog8412]

OHIO - My father in law purchased a truck in 2004. In November 2005 he missed a payment and made the payment up in December. He was assessed a 10% late charge in accordance with the contract. Due to health issues he made several more payments late and was again assesed late fees. In June 2006 he made his payment and the bank took the late fees (which had accumulated to $305) out of his payment. They never informed him of this and since they do not send statements out, they computed his loan as missing a payment and assesed late fees every month for the next year. He missed another payment and my mother in law called the bank to make late arrangements on the payment and they accepted the arrangements for a future payment. Two days later they repossessed the vehicle. I went with him to the bank and had a history pulled and discovered all the late fees and the "missing payment." I spoke with the manager about the situation and was told that the bank had no obligation to notify my father in law that his regular payment had been used to satisfy the late fees. I also discovered that they changed the interest rate on the loan from 4.6 to 10.6 because it was delinquent. I was again informed that the bank was not required to notify my father in law about this. I have read the contract completely and the box is checked which states "the interest rate is not subject to change" and no mention is made reguarding the ability of the bank to use a scheduled payment to satisfy late fees. I told the bank manager that there is no way for a consumer to know that the bank is doing such a thing if they do not send correspondance. They also tell me that in order to get the vehicle back, he must pay the two months payment and the next months payment (even though it is not due for 3 weeks) plus $710 in repo fees AND they will not be able to release the vehicle for 3 to 4 days because of the paperwork required which will mean an additional "storage" fee of $75 per day. I feel that in light of the fact that the bank has violated the contract by changing the interest rate they have in fact defaulted on the loan and that my father in law should be entitled to the return of all monies paid by him to the bank for their default. What do you think?

[elorei]

What does the contract say about defaulting on the loan, or being late? The second your father in law was late on a payment, he broke the contract.

[wardog8412]

Yes it does state that and he did default. I was wondering about the interest rate change and the fact the the contract stipulates that "the interest rate is not subject to change." By changing the interest rate didn't the bank default?

[wardog8412]

My father-in-law paid the total amout to cure the default ($2,091.69) which pays his 2 months plus this month (which was not due until 20 Aug) and the $710.00 repo fee. We paid this in cash at the bank on Monday (6 Aug). The bank repossesed the vehicle on Thursday afternoon (Aug 2) and informed us of the amount to cure on Friday (Aug 1). We were told to call back today at 3 pm to see if the paperwork was completed to release the vehicle. We drove over to the repo lot to inspect the vehicle (as allowed by Ohio Revised Code) only to be told that the vehicle was shipped to Cincinnati (from Columbus) this morning (Aug 7) to the auction lot! I do not see how they are allowed to get away with this since we paid the entire amount to cure 24 hours BEFORE they shipped the vehicle to Cincinnati! Now we are told that it will be an additional fee of $175.00 for the transport and storage fees at the auction site! I have contacted the Department of Commerce to file a complaint and the Ohio Attorney General, but what can I do about this situation? I served in the military for 22 years and never in my wildest dreams would I believe that this could happen in the United States! I have given my father in law nearly every penny I have in savings to get this resolved and they keep piling on the charges. I would greatly appreciate any advice.

[Just Breath]

My father-in-law paid the total amout to cure the default ($2,091.69) which pays his 2 months plus this month (which was not due until 20 Aug) and the $710.00 repo fee. We paid this in cash at the bank on Monday (6 Aug). The bank repossesed the vehicle on Thursday afternoon (Aug 2) and informed us of the amount to cure on Friday (Aug 1). We were told to call back today at 3 pm to see if the paperwork was completed to release the vehicle. We drove over to the repo lot to inspect the vehicle (as allowed by Ohio Revised Code) only to be told that the vehicle was shipped to Cincinnati (from Columbus) this morning (Aug 7) to the auction lot! I do not see how they are allowed to get away with this since we paid the entire amount to cure 24 hours BEFORE they shipped the vehicle to Cincinnati! Now we are told that it will be an additional fee of $175.00 for the transport and storage fees at the auction site! I have contacted the Department of Commerce to file a complaint and the Ohio Attorney General, but what can I do about this situation? I served in the military for 22 years and never in my wildest dreams would I believe that this could happen in the United States! I have given my father in law nearly every penny I have in savings to get this resolved and they keep piling on the charges. I would greatly appreciate any advice.

Smells very fishy to me. You should consult a local attorney as soon as possible.