Wells Fargo Financial Acceptance ripoff, 18% interest w/half vehicle payed in 1 years time no chance to refinance Killeen Texas

for principal payments. If you used it, they should have applied the money towards the principal. From the sound of your post, it appears as if you sent the money to the payment mailing address. If you did that, of course they would apply it to P&I.

BTW, who finances a $32K vehicle at 18%? It sounds like your credit isn't great...why then would you buy that expensive of a vehicle?

My Jeep was $32K, but my interest rate is much, much lower than 18%

Loans are calculated on a simple interest basis. This means that you pay the interest as it accrues. So, if you send extra payments, once you have satisfied the interest for that month, and assuming you don't owe any late charges, the only other place the money can go is to principle.

I think maybe you do have alegitimate gripe here, but maybe haven't worded it correctly.

If he sent his payment slip with his payments, and he specifically instructed Wells Fargo to place the extra monies towards principal, then they are required to do so. That is why they give you the payment book, with the line that says Additional Principal.

On the other hand, if you just sent in extra money without that slip, not documenting it... then they will SCREW you. You really have to dot your I's and cross your T's with this company, or any company that charges an 18% interest rate! Believe me, I am dealing with these guys right now! So did you send in your payment slip, showing where the extra money was to be applied? That will go a long way to seeing if you have any legal grounds!

If not, they got you. From now on, send in that slip, or refinance with another company! Surely you could do better than 18%. At least you could not do worse!

This sounds to me like a miscommunication. Did you send the extra money and the monthly payment as one check? If you did, the company is going to apply the amount as if it is a regular payment regardless of your instructions. In other words, it is going to go towards your interest rather than your principal.

I am assuming you have read your purchase contract and that is does allow you to pay off the principal early. (You have read it, right?)
The best way to pay down the principal while making your regular monthly payment is to send the principal check separately with a clear instruction that it is an additional payment that is to be applied to the principal only. This should be on the memo section of the check as well.

to afford a $32,000 vehicle agree to an 18% interest loan? Gosh, $32,000 is way more than any vehicle I ever bought, like the new 1991 Camry I bought fully equipped for less than $13,000 cash. But then, I am a bit frugal- I am still driving that '91 Camry.... I am looking at a new 2007 V6 Camry for $23,500. But $32,000? No way, Jose!

And the 18% interest IS due and payable when it is due and payable, like EVERY month..? Which is why the loan is called an 18% loan...!

Buy a TI BA2 Plus calculator at WalMart for $30 and learn how to use it. Take it with you ANY time you might be tempted to buy something with a loan. [BA = Business Analyst]

The way Wells Fargo applies interest to your account was itemized in your loan papers - that you probably signed without reading. They weren't wrong. You were if you thought your wishes over-rode what was SIGNED as agreed upon in your loan papers. Look. It's there. Under the paragraph dealing with how payments are applied to your account. And why would you sign loan papers for 18% and complain about this being a rip off? OF COURSE IT IS but you SIGNED for it!