• Report: #836998

Complaint Review: RAC Acceptance

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  • Submitted: Fri, February 10, 2012
  • Updated: Fri, February 17, 2012

  • Reported By: Tammy27530 — goldsboro North Carolina U.S.A.
RAC Acceptance
Internet, North Carolina United States of America

RAC Acceptance Trying to over charge me Internet, North Carolina

*Consumer Comment: Sorry

*Consumer Comment: A suggestion

*Author of original report: Rac Acceptance is over charging me

*Consumer Comment: It's called Interest

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In July of 2011 my husband and I went in to Chloe's Furniture in Goldsboro, nc to purchase 2 bedroom sets for my children. We received a bill of sale stating the total was 2159.86 plus tax of 145.79. So a total of 2305.65. We were told we would have 32 payments of 204.99 plus taxes and fees totaling 235.24. We paid down that amount also. So we were thinking the 235.24 would be taken off the ballance. No it wasn't. We received what they called an EPO to where it shows how much we will owe after every payment. When I looked at it I noticed that it showed our ballance after the down payment was 2570.26 and was told that our down payment only paid the first month and didn't come off the ballance. That was strange to me but my kids loved the sets so I let it go. Then I noticed on the EPO that after every payment it was only showing 54.67 of my 235.24 payment going towards my furniture. This was before I signed the contract. I told them if this is the only amount that will be going to my furniture then I did not want it. I was told by the lady doing my contract, and she even wrote it on my EPO that you subtract the payment before taxes and fees from the EPO amount. Which would have been 204.99. So I was told that by Febuary my early purchase option would be 923.78. I was happy with that because I was going to pay it off with my taxes.

 When I called to pay it off I was told my early purchase option was 2300.00. I said "WTF"! I have paid in 1646.48 on furniture that only costed 2570.26. Then I was told that the lady from Chloe's told me wrong and that it was correct that only 54.67 of my 235.24 payment went to my furniture and the rest they keep! So now they are trying to tell me that for this 2570.26 furniture will cost me 32 payments of 235.24 plus an early payout option at the end of the 32 payments of 929.94. That is 8457.62 for furniture that only cost 2570.26. But if I pay it out right now I will have spent 3946.48 plus my down payment of 235.24. How can they do this?

They will not honor what I was told by the lady at Chloe's and now Chloe's is out of business and they said that lady no longer works for them. I am in the process of getting a lawyer. I don't know what else to do. This was a scam just to get me to sign the contract!!

This report was posted on Ripoff Report on 02/10/2012 07:58 AM and is a permanent record located here: http://www.ripoffreport.com/r/RAC-Acceptance/Internet-North-Carolina-/RAC-Acceptance-Trying-to-over-charge-me-Internet-North-Carolina-836998. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment


AUTHOR: Robert - (U.S.A.)

What you "think" does not mater..sorry but it does not.  The fact is that you admit that the furniture was only around $2,300 and they quoted you 32 payments of $235.  If you had a problem with the 32 payments..the time to bring that up was BEFORE you signed the agreement.  If even after their explanation you still don't understand..you don't sign until you do.  This not only goes for this location but ANYTIME you are in a situation where you need to sign an agreement/contract.  Such as when you go for a car loan.

But then again this is a Rent-to-Own place and if you don't like it there is nothing keeping you from returning the items and find a place that you can get items at a lower price.

And as for what we were told about the whole payment coming off of the principal, the lady DID put it in writting.
- I would love to see where that was put in writing.  Perhaps I could be wrong, but most likely you have either never bought anything on "credit" before, or you have had severe credit issues such as delinquencies, charge-offs, repossessions...etc.  Because both of those would explain why you don't quite seem to understand how financing works, and ended up at a Rent-to-Own place.
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#2 Consumer Comment

A suggestion

AUTHOR: Ramjet - (U.S.A.)

Please don't take this as an insult.  You really need to read up on how loans work.  It's essential  you understand this for any future purchases you make.

Do an internet search for free loan calculators also.  They will show exactly how much of your payment goes to the principal and how much to interest.  You will see that loans start with much of the payment going to interest at the beginning and changing over time to most of it going to the principal toward the end. Some calculators will provide a printout showing every payment for the life of the loan.

When you first encounter the realities of loans it's a little shocking but at least you'll understand how they work.

Good luck to you.

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#3 Author of original report

Rac Acceptance is over charging me

AUTHOR: Tammy27530 - (U.S.A.)

Over 6,000 dollars in interest? I dont think so. Not on  a bed. Also it is not only in the begining that only 54.00 dollars is going to the principal, it is the whole 32 months. They have it fixed where they are making an extra 5,796.00 dollars on top of the 2305.00 the beds actually costed. And as for what we were told about the whole payment coming off of the principal, the lady DID put it in writting. But now they will not honor it saying she lied and no longer works for them.
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#4 Consumer Comment

It's called Interest

AUTHOR: Robert - (U.S.A.)

We were told we would have 32 payments of 204.99 plus taxes and fees totaling 235.24.
- You admit that this is what they told you.  If you calculate out 32 payments of 235.24, you would have found that you would be paying a total amount of $7527.68 for furniture that you could have gotten for $2305.65 if you paid cash.

So they told you correctly but it seems that you don't understand financing.  Because having only about $54 come off of your balance in the beginning sounds about right.

The ONLY issue you may have a valid complaint on is they "buy-out" at the end of the 32 payments.  If that is not in your signed contract you would have a valid complaint.   But it matters what is in WRITING not what you were "told".

I am in the process of getting a lawyer.
- Most likely the lawyer will tell you the same thing.  If they tell you anything different be very leery..especially if they ask for any money up front to represent you.  Because you may be back here in a few weeks writing a RipOff report on them.
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