Complaint Review: Household Automotive Finance

This company seems to have an issue with sending out regular monthly statements detailing what is being charged to your loan. The monthly due date of payments seems to mysteriously change from month to month.

Due to irregular statements and changes in due dates late fees are added to loans without the knowledge of customers. Often times customers who believe they have always paid on time based on the original monthly due date given to them at the inception of the loan, find that there are quite a few late fees owed. The company also charges miscellaneous fees, such as a $20/month insurance fee even if you have insurance.

When the company was contacted because I discovered that they were reporting my car payment as continually late when I was making payments on time, a customer service rep. told me of the the $20/month insurance fees and agreed to remove these from my account, if I agreed to pay the total of all other late fees charged. I sent an additional $143 along with my payment to settle the matter and bring my account to a current status.

I have just received a letter stating that until I pay all fees, the company will continue to add these fees to the principal, charge me interest on these fraudelent fees, and will apply all amounts paid to these fees first before applying to my regular payment. Therefore, my regular payment will continue to appear to be late, which will incurr more late fees, which will be added to my principal, which will be charged interest. The only way out is to refinance, which is virtually impossible since the car is so new and with all these fees added to the payoff, I can't get a loan to cover the payoff.

Lora
Raleigh, North Carolina
U.S.A.