Capital One Bank Beware! Your late fee payments may be switched to principle, not knowing! Sulphur Louisiana

After reading your post I think I see what the problem is. And the problem is exactly opposite of what you mentioned.

When a late fee is added onto an auto loan, the late fee has to be kept separated from your principle. Meaning, Capital One or any other lender can not legally charge interest on late fees, and they dont. Accrued late fees are kept separate and must be paid separate.

Lets say you have $200 dollars in late fees and a $200 normal monthly payment. So you write a check for $400 dollars to take care of the whole thing. Right...? Wrong.

You just made a $400 payment to your loan principle and you still owe $200 in late fees. You account could even be caught up and in good standing, the payments will still be made to principle unless specifically request that the payment be used to pay down the late fees on the account. Again, this is because of different accounting standards required by law to be used when dealing with bank and lender fees.

In your loan contract there will be a section that deals with bank and lender fees and the exact scenario I just described to you.
No trickery on Capital One's part, its standard with all lenders unless disclosed in the contract.

If they were applying money intended for late fees to your principal loan amount, that is being lessened by that amount... and your interest would be lessened as well. so, you may come out actually paying a bit less this way

Gee a repo man showed up twice and let you keep the car. I do not think so.

Well lets see a late fee is like 25.00 or less so you would have had to be late for 52 months on your loan to rack up a fee like that.

I am currently having the very same situation with Americredit Corp.
I have paid off my sons truck according to my records.  They have been calling and harassing me and my husband and work and at home stating we did not pay the truck off.  I asked for a detailed account statement from them which shows that the last few car payments I have made have actually gone to late fees and "penalties"  instead of the
actual loan principal.  We did get behind at one time, but thought we were caught up.
When I log into the automated site to find out the payoff it actually states that I owe
55.00 in principal, and 1690.00 in "other" fees !!  I paid another 312.00 ( normal payment) and now I show I owe 45.00 in  principal   how is THAT possible???
is this just another way for car companies to make a buck?
If anyone knows how I can avoid having this car repo'ed let me know!