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  1. #1

    Default Advance Payment Applied to Balance Instead of Future Payments

    My question involves an auto loan or repossession in the State of: Va
    On 01/22/2008 I paid on my auto loan in one big payment that coverd me for 6 months for those six month I did not make a payment ,then again I made a payment asking the lady before hand that if I made a payment would it cover me for a year she said yes made the payment and got a receipt that says next payment due 07/28/09 .Did not make anymore payments .On 11/14/08 I got a delinquent notice saying that $32.00 was due .After calling them I was told that there rules have changed and you can now only pay 3 months ahead .I have this call recorded .She says after talking to her boss Jeff Thomson CEO that she can only give me until 01/28/09 to start paying again and that she was sending a something for me to sign ,I told her I could not and will not pay but send it for me to look at and after posting it online I will give here my answer .I will not pay .It makes me mad that a company would do this to a person .If they take my bmw then so be it I would like to sue .I'm charge a rate because If I can't pay they take a risk ,to pay ahead that risk is not as low ,how can a person ask for more when one pays in advance .I will do whatever it takes I keep all records not just on paper .The company is roanoke postal employee's FCU .
    If they take my car so be it this is wrong .If I do sue I will give any comments I read that helps a payment when paid using paypal I'm not looking for money just to make people that do wrong pay .Do not tust any company record all phone calls with them as I do .

    Please help.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Advance Payment Applied to Balance Instead of Future Payments

    It sounds like to me that this is what happened to you;

    You paid a large payment which was applied to your loan balance. Your new payoff on the day the money was paid was a certain amount.

    However, most auto loans are simple interest loans, meaning, that there is daily interest on the loan. So every day that passes from the date you made your large payment the interest contiues to mount up.

    Although you made a large payment and did not pay off the loan you are subject to the simple interest format which is how most auto loans are issued.

    So if you owe lets say $5000 on one day , a month later you may owe $5200.

    Therefore, even though you where paid way ahead, the interest on the outstanding balance will use up future money paid and make your payments due sooner then on the date that you expected.

  3. #3

    Default Re: Advance Payment Applied to Balance Instead of Future Payments

    I don't think so I paid $2101 and then had a bal of $2756.30 at 8 pecent that would not eat it up that fast just 4 months later at $180 a month payments and they told me that they use to do this but it just changed that you can no longer pay up over 3 months .I guess a Receipt means noting .

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