Flagship credit acceptance Deceptive accounting practices Chadds Ford Pennsylvania

I called Flagship Credit Acceptance to inquire why the extra funds I pay above what my monthly loan payment is was not being applied to my principle.  I was told that the additional funds are being applied to the principle.  I had my account pulled up on line while talking to the clerk and it clearly showed that the additional funds were applied to the interest.

I told the clerk that they are to take the interest from the monthly loan payment and the additional funds should be applied to the principle.  After explaining to her what I was seeing on the online account, she told me that I would not see the addiional funds being applied to the principle.  I told her if the additional funds were applied to the principle, I should see my principle being reduced by the additional amount after the required montly payment was applied.

What they are doing is taking the additional funds and applying it to the interest, thereby, not reducing my principle. By reducing my principle it reduces the interest thereby shorting the live of the loan and I save money. Because they are applying my additional funds to the interest, it do not lower my principle. The company is paying themselves with the extra money by applying it to the interest.  

The clerk said I should send in the additional funds via the mail and they would be applied to the principle. I told her if they were being applied to the principle with my online payment as you said why should I have to mail in the additional payment. She could not explain to me the contridiction in her statements to me. The clerk said she will send me a print out of my payments, but that will not help, because I already know what they are.

If the company gets extra funds over  the monthly loan payment, they should hold the funds as unapplied funds and apply the overage to the principle instead of applying it to the interest. I do not know anyone who would  want their money applied to the interest  and not the principle. The Company has unethical lendingand accounting  practices, which need to be reviewed.