Drive Financial Service
P.O. Box 562088, Suite 900
Dallas Texas 75247
U.S.A.
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Drive Financial Service NEEDS TO BE STOP! HIGH INTRESET RATE, RUDE CUSTOMER SERVICE, OVERALL RIPPING CUSTOMERS OFF. HELP! ripoff Dallas Texas
4Author
5Consumer
0Employee/Owner
This is my first time getting an auto loan and I regret it with all my heat. This company basically preys on needy consumers. Like most people, I really needed a car and my credit is not the best so I did except a high interest rates. I got my vehicle March 2007 and it is now August 14, 2007 and the amount the loan was taken out for has only gone down 300 dollars. I have made 5 payments and each payment has been for $456.00.
I called Drive Financial service and spoke with one female rep who hung up on me when she felt like I was asking to many questions. So then I called back and spoke with a rep. by the name of Rovina. I express to Rovina that someone hung up on me the first time and I have a few questions that needs to be answered. Well after asking my first question which was, why is my balance of the loan not decreasing? she hung up on me.
Once again I called back and ask to speak with a supervisor. The supervisor Mekria seems a bit more helpful, but not to caring that the staff was rude and offer poor customer service. She explain to me that a large part of my payments where being applied to the interest.
So I ask for deals. She stated that for one month that I made a payment of $456.00 that only $14.03 was applied to the actually car loan balance and the rest of the payment went towards the interest (what.. that is crazy.. that is about 90%) then another payment of 4456.00 that was made a different month and only $81.62 was apply to the actually car loan and the rest to the interest (once again.. WHAT). So basically I have paid almost $2,200.00 but only around $300.00 dollars of that have gone towards the car loan… This is crazyyyyyy..
How can this be legal and if so, the laws needs to be adjusted. I understand that some of the money I pay will go towards the interest, but not 90% nor 70% of it. The sad thing about all of this is I feel like there is nothing I can do about it!
Is this illegal? Yes we signed a contract, but in the hopes to improve credit, not to be trap in a contract. I will never be able to get into another vehicle, b/c all the money I am paying is going towards my interest and barely anything towards the actual loan amount.
Oh yeah. I ask for the payoff amount and the payoff amount is actually higher then the amount I took the loan out for the car and keep in mind I have already paid about $2,200.00. This is crazyyyyy
I am all for a civil suit. Please let me know if anyone has one pending that I may be able to assist with or even become part of.
Jeep
Newark, New Jersey
U.S.A.
Click Here to read other Ripoff Reports on Drive Financial Service
REBUTTALS & REPLIES:
4Author
5Consumer
0Employee/Owner
Updates & Rebuttals
#1 Consumer Suggestion
AUTHOR: Dave - Jacksonville (U.S.A.)
SUBMITTED: Wednesday, August 15, 2007
POSTED: Wednesday, August 15, 2007
With most banks and lending institutions that cater to people with average credit scores, you pay the interst throughout the length of the loan. But in your case, you are paying the interest charges up front. That is why your balance won't go down for another 18 months or so. This type of loan is legal, and there's nothing you can do about it. It's like a credit card, where you pay finance charges first, then a piddley amount to the principle.
Live with it. Clean up your credit in the meantime, and the next car will have a much better rate.
#2 Update By Author
AUTHOR: Jeep - Newark (U.S.A.)
SUBMITTED: Thursday, August 16, 2007
POSTED: Thursday, August 16, 2007
My purpose of getting into a car loan was to help improve my credit. We all know that it takes time for your credit rating to increase. I have paid all my old debt. I am just in the process of rebuilding.
You are wrong when you say I can't do anything about. Listen up and anyone else in the same jam as I am in please listen as well it may help you.
Through my job I have a Credit Union. Some Credit Unions offer in house loans, where no credit report is run for approval. I have always had the option to have my Credit Union pay for my car and I pay them back in payment, but when you do in house loans it does not reflect on your credit report. Since I only got into this loan through a bank to help rebuild my credit, I decided not to go with my credit Union (bad decision). At this point I contact my credit union and they are willing to refinance my car loan.
The good thing is the book value of my car is only 500 less then what my pay off amount is through Drive. So I will only have to cover the 500 dollar difference. Yes I have been paying for my Jeep for 5 months, so I will be losing out on some money and will have to find another way to rebuild my credit. In the long run I will be happy I took this route. The interest rate is 5.5% and yes my payment through the credit union will not reflect on my credit report, but the PAID IN FULL loan from drive will show on my credit report and that will help a little.
So you see... There is something you can do about it.. Try to find someone else to refinance your car loan. It may benfit you if you have not had your vechile for more then 6 month or a year.
Good Luck!!!
#3 Consumer Suggestion
AUTHOR: Robert - Buffalo (U.S.A.)
SUBMITTED: Thursday, August 16, 2007
POSTED: Thursday, August 16, 2007
What you describe is NORMAL for almost all auto loans. In the beginning the overwhelming majority of your payments will go towards paying interest on the loan. Each month, the amount going towards the principal will go up and the amount going towards the interest will go down. Towards the end of the loan, the overwhelming majority of the payment will be towards the principal.
You can check this yourself. If you go to bizrate, you can use their amortizing calculator to check how your loan with is amortized. The calculator allows for you to print the entire monthly payment schedule for the life of the loan showing the breakdown of principal and interest.
All you have to do is enter the particulars of your loan; the amount of the loan, the interest rate, the number of monthly payments, and the date that the payments start and then click "calculate." You can also add in any one time fees that may be associated with the loan.
Please not that the amortization table of the loan will assume that all scheduled payments are made ON TIME.
You will see the entire schedule for your auto loan. You can use this calculator to play around and see the effect on a loan that a change in interest rate produces.
#4 Consumer Comment
AUTHOR: Nikki - Coconut Creek (U.S.A.)
SUBMITTED: Thursday, August 16, 2007
POSTED: Thursday, August 16, 2007
This same amortization happens with mortgages too. So, when you go to purchase a home, be prepared. My 2nd mortgage payment is $800 per month and only $30 goes towards principal. The rest goes to interest. Welcome to the wonderful world of loans.
Glad your employer helped you.
#5 Update By Author
AUTHOR: Jeep - Newark (U.S.A.)
SUBMITTED: Friday, August 17, 2007
POSTED: Friday, August 17, 2007
Thank you for the help feedback.
My main purpose of going on here and posting my story is to make people that are in the same situation I am in aware. When you go in to a dealership with less then average credit, the first thing a dealer tells you is "I can put you in this car now which will help rebuild your credit. Then you can come back in a year and I can put you in something much better (lie)
They leave out that all the details about how for the first year your loan will be with this company that will take 95% of you payments and apply it towards your interest, which will make it somewhat impossible to get out of the car and the loan, unless, you are willing to put down a pretty large down payment.
Also, Drive does not off refinancing, so let say in a year or two I clean up my credit and want to try to get my interest lower by refinancing my loan, I will have to find another company to do it, b/c drive does not offer that.
Overall I have learned my lesson. This is not a case where my car payments are late or my car got repo. I made a bad judgment call and got stuck with a bad loan company. I am sure there are other companies out there like drive, but I do hope they offer my better customer service, b/c Drive Customer Support services is worst then their consumers credit score.
#6 Consumer Suggestion
AUTHOR: Robert - Buffalo (U.S.A.)
SUBMITTED: Saturday, August 18, 2007
POSTED: Saturday, August 18, 2007
Jeep,
When you're looking for your next loan or credit card or any line of credit, go to the bankrate (I mistakenly said bizrate - it's bankrate) and play around with the amortizing calculator and see the difference the interest rate makes on the credit.
You are paying a high rate, but once you're credit score improves, you'll be able to get a loan at a lower interest rate.
#7 Update By Author
AUTHOR: Jeep - Newark (U.S.A.)
SUBMITTED: Monday, August 20, 2007
POSTED: Monday, August 20, 2007
Thank you Robert,
I actually tried to access the website you gave me and saw that there was an error with the name.. I will try bankrate website and do as you said.
#8 Consumer Comment
AUTHOR: Robert - Buffalo (U.S.A.)
SUBMITTED: Monday, August 20, 2007
POSTED: Monday, August 20, 2007
Several credit calculators are available at bankrate.
Just click on calculators near the top of the site.
If the website name above is incomplete, just do a search for bankrate and remember they are a COMmercial business. OK?
