What other steps can I take if my Car financing company won't apply my LumpSum payment to my principle balance

Question

The car financing company applied half of my Lumpsum payment to principle, and the other half they spreaded over the course of 12 months of future payments. I keep insisting that they apply the payment to my principle balance owed, but they keep coming up with excuses. I would be paying the car off a year and 4 months early, if they apply the payment. The financing company is Long Beach Acceptance Corp.

Answer 1

When you send a lump sum amount to a lender, always send it as a separate check along with a note that says "please apply the enclosed amount of $X to account # in the name of XYZ." This method never failed me.



As far as what to do now, you might be stuck. Look at the specific terms of the loan. They may say something to the effect that all lump sums will be handled in that manner. Also, make sure you don't have a pre-payment penalty on your loan.



The easiest thing to do is to just pay the loan off. By that, I mean that if you owe say $2000 on the loan, don't send them any more lump sums. Instead, save all those lump sums until you have the $2000 and send them a payment in full. You'll still pay it off early and there's no question about applying the payoff to future payments.



Good luck.

Answer 2

Ladies, I think it is principal instead of principle???



Anyway, You probably should talk to several banks as if you are looking for a financing company that would do exactly what you wanted your lender to do. If they said they will do it, then go back to your financier and complain farther. Each financing company sometimes also have their own ways of lending - so you may want to read your contract first before you attack so that you will not look like you are just mumbling.

Good luck.

Answer 3

Refinance the loan at a credit union.



If the car is worth at least what you owe (you are no "upside down), they will give you enough to pay off the loan and you can set up a new payment plan.



Your credit rating and loan payment history will be looked at to help determine what rate you will end up paying. With any luck, you may even lower your rate.



From your description of the company involved, you want to get away from them ASAP.

Answer 4

If you have an open end loan, you can pay it down anytime. Just send 2 letters, 1 certified 1 regular and demand how you want it applied. Tell them if they refuse, you will file a complaint with the Banking Commissioner. Make sure you make a copy and get a physical where to mail the letters.

Answer 5

Go borrow money from a bank to pay off the car. You can pay the bank loan on accelerated payment.

Answer 6

Did you specifically state that you wanted the lump sum to go towards the principle?

Answer 7

first do you have a open or close end note.. if it is an open ended note it is to your advantage to pay it off early and save interest -- if it is a close end note doesn't not matter if you pay off early or not they will get their interest.

Answer 8

http://www.cash-available.com/CarLoan should be helpful