- Report: #1356815
Complaint Review: Credit acceptance - South field Michigan
Reported By:
Chrysler 200 2013 -
Flushing, New York, USA
Submitted:
Updated:
-
Author Confirmed
Why?
Credit acceptance
25505 West twelve mile road South field, 48034 Michigan, USA
Phone:
248-353-2700 ext 5877
Web:
Creditacceptance.com
Categories:
Business Rating:
(0)
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Credit acceptance RIPPED US OFF!!!!! South field Michigan
ON January 19th I requested 10 day payoff letter fromcredit acceptance so I can so refinance our Chrysler 200 . The payoffamt was 13,929.61. It expired. Then I called credit acceptance so I could get a new letter now the payoff amt is 14,233.17 . How does the payoff amt go up when a payment was made in February of this year and I am not liable for any payment until June because of the 2,000 dollar lump sum payment that I wrote for principal only.
2 Updates & Rebuttals
CHRYSLER 200 2013
#2Author of original report
Sat, February 18, 2017
You fail to understand . I disputing their policy , but I specifically wrote forprincipal only on the check , if they could not do it they should have notified me that they could not do it and return my check. SO no one ever said that they told me that it would be applied the same way as a regular payment.
FloridaNative
Palm Beach Gardens,Florida,
USA
You contradicted yourself in your post
#3Consumer Comment
Sat, February 18, 2017
Take the time to learn about loans and interest. Do some research. Based on your very own post, you made a $2000 lump sum payment to the lender that you had applied to the outstanding principal balance. When you do that, it doesn't stop interest from accruing. In a simple interest loan, interest accrues daily. When you make a lump sum payment to the principal it reduces the principal amount but does not stop the interest.
So yes, if you make a lump sum payment, your regular payment is still due on the next due date. This is normal. The payment is the same amount, but the portion applied to principal is a little larger because you made the lump sum payment. However, if you failed to make your regular payment, then more interest is due because there are more days between your last payment and your current payment. Go back to your loan paperwork and read about the allocation of your payments. Because you paid late (gathered from your post) you now have a late fee and more interest to pay.
There are lenders that will apply your $2000 payment toward future payments if you don't specify that the lump sum is to be applied to your outstanding balance.
