Am I really in default on this?

[twjtiger]

I have an auto loan that I have been making $150 dollar a week payments every week. I have it automatically deducted from my bank and sent to the bank I have the loan with. My payment is only $579 a month. I am being told that after nearly a year of doing this that I am 4 months behind on my car payment. We have had this discussion before, and went over my contract. It reads as such. YOU MAY PREPAY. You may prepay all or part of the Amount Financed at any time without penalty. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment. Can my vehicle legally be reposessed if I have been making more than my payment each month? I am in SC, and from everything I have read, by accepting these partial payments then they have agreed to keep accepting them. Anyone have any experience in this?

[dfromnyli]

I'm lost, if you are paying $600 per month, how are you 4 months behind in payments?

[twjtiger]

I am just as lost as you are. They are telling me that they dont accept the $150 dollars a week towards my payment and I am in default, because I have to pay the full amount at one time for it to be considered a payment. Yet they have accepted these weekly payments from day 1.

[divona2000]

Originally Posted by twjtiger

I have an auto loan that I have been making $150 dollar a week payments every week. I have it automatically deducted from my bank and sent to the bank I have the loan with. My payment is only $579 a month. I am being told that after nearly a year of doing this that I am 4 months behind on my car payment... my contract. It reads as such. YOU MAY PREPAY. You may prepay all or part of the Amount Financed at any time without penalty. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment... Anyone have any experience in this?

I have done this, for my mortgage and auto loan, bank called it "cookie jar" paying (a little at a time until the correct amount was paid-by the date owed). Your problem may possibly be in when your payment is due.

For example, if $579 is due on May 17, 2009, and your bank auto deducts and sends a $150 payment on Fridays, May 5, 12, 19, 26, that's only $300 paid by the due date. Late fees and interest may be eating up what you have paid, putting you behind, since you are not prepaying all of what is due by the due date.

[twjtiger]

I have also asked about that, and no I am not behind in that way. I started out with a full payment to be a month ahead, so as to not get into that situation. My only thought is that this is a loan that the interest is compounded daily, so every time they apply a payment they are starting that interest cycle over again and my interest rate is being cut down alot from what I would have paid if I let it ride for a full month. My real question is this, can they reposess my truck for making payments in this way. I have told them that if they think that is what they need to do over this situation then they should just come get the truck, but I am tired of getting harrassing phone calls from them because of this. Shouldnt they be calling people that are not paying them at all?

[ecmst12]

I think you need to start making your payments the normal way, once a month.

[xylene]

Originally Posted by ecmst12

I think you need to start making your payments the normal way, once a month.

Indeed. It is stupid on the creditors part.... but their right.

They are within there rights to expect lump sum payments

You need to talk with them about the status of the payments you did make and an accounting of the funds

Be prepared to not like the answers - aka finding out that you have lost out on some mullah.

[longsally111]

get copies of everything from your bank showing that you made all the payments and take them with you. Then sit down with them and have them explain it to you.