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CitiFinancial Auto Complaint - Almost Fraudulent Autoloan - Car Loan
Car Loan - Complaint
When I purchased my 2008 Mustang GT, I could only get financing through CitiFinancial Auto as I have no credit history. My interest rate is 16.99% and I am making my payments religiously. In April 2010, I started making payments early and adding funds to my payment to apply to principal balance only. I've made additional payments and noticed that the balance did not go down as anticipated if the principal payments would have been applied as intended. I have called their customer service # on 5 different occasions, and every time I am told that they could not apply anything to additional principal, unless your loan is paid up to two months ahead of schedule. When asking for amortization schedule of the loan, not available. When asking to speak to a supervisor, the customer service representative in Pune, India either hangs up the phone or refuses to transfer the call. I am in the process to get this car loan re-financed with another financial institution, as the lack of US based customer service and improperly applying loan payments are against any proper business practices. Nowhere in the loan paperwork does it state that you can't make payments towards additional principal. Additionally, they are holding back depositing checks mailed in for 3-4 weeks in order to charge their daily interest to the loan to keep the balance high.
I wish Congress and the consumer agencies would review their lending practices for hard working, bill paying Americans. They seem to be more concerned about hiring Thousands of Indians and paying their $ 2000.00 per year wages, ang pocket all the profits for their Bahamian resorts.
What happened to the "Truth in Lending" bill just introduced?
If I have to pay these type of fees and APR's, at the very least I would like to see my fellow Americans being offered employment in the US.
I will refrain from giving Citifinancial Auto any additional business, nor will I give them a favorable recommendation if I'd ever be asked about their lending practices.
I wish Congress and the consumer agencies would review their lending practices for hard working, bill paying Americans. They seem to be more concerned about hiring Thousands of Indians and paying their $ 2000.00 per year wages, ang pocket all the profits for their Bahamian resorts.
What happened to the "Truth in Lending" bill just introduced?
If I have to pay these type of fees and APR's, at the very least I would like to see my fellow Americans being offered employment in the US.
I will refrain from giving Citifinancial Auto any additional business, nor will I give them a favorable recommendation if I'd ever be asked about their lending practices.
Comments:
Posted by leet60 on 2010-07-31:
As unfortunate as it is, this is normal business for auto lenders in situations such as yours in which there was no established credit history to judge your "creditworthiness" on.
Simply put, they aren't in business to lose money, and their policy of not applying additional payments to principal first is in the interest of their business. If you are not able to refinance through a more favorable lender, you may want to simply scrimp and save until you can meet their requirement of making two additional payments, then make extra on your monthly payments.
Your best bet is a credit union loan. I wish you the best.
Simply put, they aren't in business to lose money, and their policy of not applying additional payments to principal first is in the interest of their business. If you are not able to refinance through a more favorable lender, you may want to simply scrimp and save until you can meet their requirement of making two additional payments, then make extra on your monthly payments.
Your best bet is a credit union loan. I wish you the best.
Posted by MaggieMcT on 2010-08-01:
Ditto to leet60's comment. My auto loan is with my credit union, and when I pay extra, it does go onto the principal.
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