I bought a car in Nov. 2005. It was a great car, the interest rate was high (21%) but it was explained to me that if the payments were made on time the interest rate would be lowered 2% a year and the payments would stay the same in order to pay the loan faster.
Everything went fine for a while until my father got cancer and was not expected to make it. I then moved back to IL to be with him as long as possible. I was unemployed for a while and made the payments about a week or two late for about three months. I did not get the reduction during that period, which was fair.
I then retained employment and then made all the payments on time except when the 2nd of the month fell on a weekend and they were closed and payments could not be taken. The payments were made on Monday morning or sometimes the previous Friday.
In order to avoid giving me the 1/2% reduction for every 6 payments made on time, they started saying they had no proof of insurance. When I relocated to IL I had to get IL insurance because you need insurance in the state you reside, besides it is 1/3 the price here as opposed to CO. Prestige Financial was named the payee in the policy and they were notified of this with the new policy.
Six months into the policy I started receiving letters telling me that I did not have insurance. They could not give me the rate reduction if I could not prove I had insurance. I was panic stricken and called the insurance agent,she sent me the policy and I faxed them to Prestige. I still continued to get letters stating I did not have insurance. I then called the insurance agent to get her to call and fax the paperwork. I called my counselor and while I talked to him he said I just talked to the agent and there is a fax coming in now from her. Everything is taken care of.
I still continued to receive the letters from Prestige, only now they threatened to notify the DMV I was not covered by insurance. I still continued to fax the policy to them and renewed it promptly. There was never a time I did not have insurance on that car. When I bought the car I called the insurance broker from the dealership and had insurance before I drove it off the lot. When I changed insurance co.'s I did so before the previous policy was over. I had two insurance policies in force for a week during the transition.
Now I get a letter from them stating they have notified the DMV that I do not have insurance. I have received notification from the state I need to provide proof of insurance and that is no problem. I can do so. They will go to such great lengths as making false accusations to government officials in order to keep from lowering the interest rate.
When I go to the website to check my account I see the interest rate was lowered 2 1/2% which it should be (after 3 years of payments) 5 1/2% because of the time I made the payments a little late. The interest rate should have been 21% from the beginning and when you do the math it is 29%. I think they should get their license revoked for fraudulent practices. They make enough on the interest payments with out resorting to lies and cheating, and threats and fraudulent practices.
Sauk Village, Illinois