crediting of payments

[elleirb]

I live in Colorado and entered into an auto lease agreement nearly 3 yrs ago. In May, my regular monthly payment was used (w/o my knowledge or consent) toward late payment fees that had accrued. They are now telling me I am behind on payments. I found nothing in my lease agreement that discloses this practice. What is the applicable law?
Also, I have been making my payments by "phone pay", usually on the last or next to last day of the grace period. They send written confirmation also showing the transaction took place on that day. However, the payment is not actually posted to my account for 2 or 3 days and late fees are then assessed and it is reported to the credit bureau. What is the applicable law?
Thank you!

 

[JETX]

If you will re-read your lease agreement, you will see that there is probably a clause that payments will be applied first to late fees and penalties, then to current payments. This is a fairly common provision.

As to late fees, there is no 'applicable law' as to the application of late fees or penalties. It is incumbent on you to make sure that your payment is made early enough to be posted late. By waiting until the last minute as you have been, you are making yourself very likely to incur them. Not all payments are 'instant', even those made by phone. Most systems provide for payments to be credited on the next business day after received. It is your responsiblity to pay on time and to prove it if you believe them to be in error.