Automotive Finance Company/Auto Loan

My husband and I obtained an auto loan through People’s Credit. About half way through they sold the loan to a company known as Car Financial Services (this company also goes by Wells Fargo). From the moment Car Financial had the loan they have been trying to get extra money from us. Our late fee with People’s Credit was $12.46 per incident. When Car took over the account they listed the late fee as being an even $15.00 per incident. There were several things that went wrong or were questionable when Car took over the account and I spoke to People’s Credit about it several times. I was told by People’s Credit that the new company cannot change any amounts – that no matter who the finance company was the late fee would not change. Car financial agreed with that via a few different phone conversations and assured me that the account would be corrected. That was several months ago and they still have not changed it. Every single time the payment is late they tack on $15.00. I talk to them about it, they say they will take care of it and never do. And on top of that now they are not crediting the complete amount that I send in. The actual monthly payment is $249.29. When I make a payment I send in an even $250.00 – which is an extra .71 cents. Right now Car Financials record shows that we owe $5.79 more than the correct amount we owe (the difference between their late fee and the correct late fee plus .71 cents).

I need to know what can be done about this. What recourse does a consumer have when a finance company continually tried to over charge them? Given what I’ve gone through I have to wonder how many other people this has happened to who didn’t know that Car Financial cannot change the amount of the late fee. How does something like this affect our credit report? It already isn’t the best and we are trying to change that. I can’t imagine Car Financial reporting that we owe more than we actually do is going to help that any. To be honest our account is past due most of the time. We are usually one payment behind as is the case right now. But that shouldn’t mean the finance company can try to over charge us. I would greatly appreciate any feedback. Thank you for your time.

Deeka C. English

Comment On This

First of all, your credit report will likely say that you pay 60 or 90 days late because the difference betweent the $15 and the $12.46 is still owed by them. It will pile up. I would check the report for accuracy. Secondly, the finance company can change the rate any time they like. I realize that it's a contract, but your contract becomes null and void if they so choose when they buy out the finance company. HOWEVER, if they so choose to modify your contract, they must send out new terms of credit and you must accept those terms BEFORE a certain time frame or the car must be taken back and the loan to be cancelled with out penalty to you. They can NOT change your principle, interest, or payment amount, or even the amount of time left on your contract or the original term of your contract, with out formalities, but they can indeed change late fees. Banks do it all the time. One bank will have a $25 NSF fee and will be bought out by another who's NSF fee is now $35. No difference.