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American General Finance Complaint - Interest more than required Payment - Financial Services
Financial Services - Complaint
MOUNT VERNON, WASHINGTON -- This company actually has an address of 1616 N 18th St Ste 120 Mount Vernon, WA 98273-2699. Phone number 360 424-7081. When we initially made the loan I made an early payment, every payment was always before the due date and I always paid more than the amount of the required payment. Two times they took every penny for interest. I would have thought that at least the amount made over the payment would have gone to the balance, if only $4! So they tried to explain that because my early payment was so early that the even though the next payment was still early the interest charged all meant that everything I paid them went to interest. OK, I let that slide--Now here it is several years later and AGAIN I paid $500 instead of the $416.68 that my payment should be and they took out $425.42 in interest!
The thing that gets me upset is that how can they take out in interest an amount greater than the payment I was supposed to pay. Especially when I have always paid more than the required amount!
The thing that gets me upset is that how can they take out in interest an amount greater than the payment I was supposed to pay. Especially when I have always paid more than the required amount!
Comments:
Posted by grandma005 on 2008-02-23:
Why did you pay them extra? Save money up and pay them off in one large sum at one time and end the bleeding of your money. Yes they are crooks. I used to work for them years ago and even then their interest was really high. To get rid of them is the only way to be free of them.
Posted by Aerocave on 2008-02-23:
Sounds like this loan is based off of actuarial interest but you are attempting to pay as if it was based off of simple interest. Every extra dollar you pay on a simple interest contract goes towards reducing the principle balance...most automotive contracts are based on simple interest...if it is a loan with actuarial interest, paying extra is basically "prepaying" interest. I would pay the exact payment, refinance under new terms, or pay the whole thing off and be done with it.
Posted by Mrs. M. on 2008-02-25:
granma005 and Aerocave, thanks for your comments and advice. I will work on getting rid of them. I recall there is an early payoff penalty but I could leave $5 on there and that would not be considered paying it off...
Posted by fyifbi on 2008-08-02:
I feel sorry for anyone that has to do business with AG. I suggest you all go to the collection laws website and see what they can and cannot do and then report them to the State department of financial institutions. They think they are above the law.
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