I still cannot rack my brain on this, so I need some explanation.
My car payment is $624 per month. I pay $700, always have. I have no problem making the payments. My intent is of course to have the extra $76 go towards the principal, but of course they automatically apply it towards the next month's payment. In order to have the additional taken off the principal, I would have to call and ask. They allow you to go back 6 months.
For July, I owed $31,088 on my car. I called and asked to have the last 6 months adjusted so the extra $76/month would be taken off the principal. I was expecting my principal balance to be $31,088 - ($76x6) = $30,632.
To my amazement, my principal actually went up after the adjustment, now to $31,095. I was quite perplexed and called for an explanation. I was not given one I could understand. And I still don't understand how it could got up.
The only thing I can think of is how they worked it. According to the website, they conducted a "payment reversal" for each payment from the last six months. They then "repaid" each of the last six months, but only only considered the date of payment to be the date I called them in August to reverse the payments. This means they charged me 6 months of interest for a February payment reversal done in August. They essentially considered February to be unpaid from February to August and charged simple interest on those 6 months.
Is this right? Am I understanding this correctly? I straight up told the lady on the phone this is a fucking scam and she just didn't say anything. This is obviously unethical, but I am wondering if this is illegal as well.
Submitted August 18, 2023 at 07:23PM by cameroonwrapper https://ift.tt/lfmjiHO
