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auto loan....additional "late fees" added ....no updated billing info given

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S

smithhefle

Guest
What is the name of your state? NY
My father in law took an auto loan through Chrysler. Completed the loan term with all payments made as scheduled. At some point during the term, payment posting was delayed and additional fees were added on to the loan. This isn't so much a point of contention as is the fact that Chrysler never did and never intended to inform him of the additional charges....the only way he found out was by calling them to find out why he hadn't received a lien release. The rep at Chrysler informed him then of the additional charges. He said "fine, send me a bill with the new charges". They responded that they don't bill for that but they would not send the loan release until they had received the payment. As the period of time passes until Chrysler receives payment on it, interest on that additional charge accrues.

His total additional payment only totaled $27 approx, which isn't a significant amount. It would have grown had he not taken the intitiative to call them and ask about it. And if you multiply that $6+ per month interest on these late charges times the number of loans Chrysler holds, I'm sure we're looking at millions of dollars.

My question would be if this is acceptable billing practice under the law. Obviously, it is immoral and very sneaky (and I'm sure it adds a nice sum to the Chrysler bank account). The balance was paid and my father in law has clear ownership on his truck, but I would like to know if what they are doing is legal and I firmly believe consumers should know of this practice....my hunch is that all the major lenders follow something similar.

Thanks for your time and help.

Brian Hefler
 



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