citifinancialauto Complaint - outrageous usurous policies
COLUMBUS, OHIO -- In 2002, I purchased a used car from Budget Rental Car. Because of a three year recovery and rehabilitation due to an aorta dissection in FEB2000 I owed numerous balance due hospital and physician bills which decimated my formerly excellant credit rating. As a result of my poor credit I was required to finance the car at an extremely high interest rate, i.e. 50%...cost of car-$8,000, cost of 6 year loan-$4,000...total loan cost - $12,000. Two weeks ago, I totalled out my car driving over a traffic island. The payoff to citifinancial auto is $6,220. I made 28 monthly payments of $196.06. I was a few days late on 2 payments for which I was charged $15.
I discovered the interest rate for the loan was not 50% but 68%. Meaning only 32% of each monthly payment went toward principle.