In Nov/2004 I purchased a new car from
Honda Fremont, at which time the contract was written to have Honda carry the
loan, well after 2 weeks Honda decided they couldn't carry the loan and turned
it over to WFS to carry the loan, I was told the interest rate went up slightly
and that my new payments increased to $440.00 from $375.00 I went in and signed
a new contract with Honda identical as the old one other than the new interest
and monthly payment increase. My loan
would be fully paid as of December 2009. Here is the problem, every month this year, 2009;
my loan has pretty much maintained the balance of owing over $3000.00 as of
Dec. 2009. I contacted Wachovia, who was
formerly WFS, to resolve this difference in my loan balance and I have
constantly received the run a round or the explanation of my loan payment being
late on numerous occasions had caused fees to my account, lack of Insurance
coverage (I never had a agreement to furnish Insurance with WFS or Wachovia) and,
anything else they could think of short of a full explanation of why my loan
hasn’t matured. I responded to them according to the contract
I agreed upon, I have 10 business days from the official due date to get my
payment in before incurring a late fee of 5% of the part late. But as you will
see on my payment histories I was charged late fees within 10 business days of
my payment regardless of what the contract stated. Also my payments are being spread out to
incur interest past the last scheduled payment, nowhere in my contract did it
say the loan is compounded daily or annually according to the original loan at
this rate I would never get from under this loan. I have a Car cost & cost of financing
the loan which included interest. At the
beginning of my loan there was a discrepancy with when received payment was received,
but on June14thth , 2005 my payment date had changed to the 25th
of every month up, and late fees shouldn’t have been an issue, but it continued
until May 2007.
With regard to Insurance, I was unaware
that I was making the CPI insurance payments to Wachovia and this insurance was
incurring interest. At the time of original loan, the Insurance
agreement was with American Honda Fin., which became void when a new contract
was signed. I never signed an agreement to furnish
Insurance with WFS when the loan transferred and new contract paper work was
signed.
At
the point of not getting a satisfying answer or explanation as to why my
payments have not made my loan balance change significantly, I called again on April27th
2009 and requested a copy of my Contract with Wachovia and was sent the
contract from Honda, as I had never had an official contract signed with
Wachovia or WFS. Also, one week after
that May 5, 2009. I called Wachovia customer service and requested a copy of my
Payment history. So when I received my
payment history which I requested because of the balance never changing
although I was making payments, I noticed CPI insurance and interest incurred I
was disturbed and contacted Wachovia (former WFS) I was told I didn’t have
valid insurance coverage so we covered you at your expense, I was told I’d get
a letter in the mail explaining it. However this has been being deducted since
2005, to date I have not received such letter.
As for the Loan payments, interest and lack of closing date, I was told
my questions and concerns will be turned over to my local office and I would be
getting called by the signing agent, however the company changed from WFS to
Wachovia and the office I previously had contact with closed, I have not
received this call as of yet either.
I am certain I have over paid them in large amounts.
As I am sure I am not the only person being taken advantage of, their
contracts/accounting policy needs great reviewing.
