My question involves a consumer law issue in the State of: California
Car cost $18000
Downpayment $6000
Original loan amount $12,000 (May 2007)
Interest Rate 15%
Monthly payment $283
Payments made so far 21
Remaining balance $8800
Bank: Fireside
Never over 30 days late.
I have a monthly payment of 283 dollars (this includes 15% of the total loan and the principle). My payments are due on the 2nd of each month.
The bank is charging a "per day" late fee of 15% interest of the monthly note and applying it to the remaining balance.
That's $42.45 per day.
Last month, due to job loss, i was almost 30 days late and $1100 in late charges was applied to the remaining balance. My balance went from $7800 to $8800.
Being that the $283 monthly rate includes interest on the total loan. Then the late fee applies 15% of the $283 to the total remaining balance (which already included interest), it's like i'm being charged interest on top of interest. I don't think I'll ever pay my way out of this loan.
I didn't see this per day charge in my contract (i need to review again).
Is this legal?

