Household Automotive ripoff City Of Industry California
Buyer Beware! I fell on hard times and HOusehold Auto agreed to modify my contract allowing me to skip some payments. I later found out that their generosity carried a hefty pricetag.
Unknown to me, and never discussed, were hidden charges that frankly I am still unsure exactly what they are for. I now find that I owe $447.14 in fees for the extension.
I cannot believe that this is legal.
Madelyn
Niskayuna, New York
U.S.A.
3 Updates & Rebuttals
Nancy
Warsaw,Missouri,
U.S.A.
Interest continues to accrue
#4Consumer Suggestion
Sat, March 27, 2004
Wen a credit company agrees to allow skipped payments, they are agreeing to delay reporting the information to the credit reporting agencies. The payments then must be resumed in accordance with the agreement.
While the payments are being skipped or defered by the customer, interest continues to accumulate at the same rate as before. If your payment of $200 pays $100 interest and $100 principal, then the skipped payment period pays nothing to the principal, but continues to accumulate $100 per payment skipped on the interest.
Until the additional interest is paid in full, none of the regular payment is posted against the principal. If you are allowed to skip payments, the interest would increase by $100 per month (using the figure above). 3 skipped payments would increase the amount $300 (probably more), and take 3 to 4 months of your regular payment to reduce the additional interest before any of your payment would again post against the principal.
Nancy
Warsaw,Missouri,
U.S.A.
Interest continues to accrue
#4Consumer Suggestion
Sat, March 27, 2004
Wen a credit company agrees to allow skipped payments, they are agreeing to delay reporting the information to the credit reporting agencies. The payments then must be resumed in accordance with the agreement.
While the payments are being skipped or defered by the customer, interest continues to accumulate at the same rate as before. If your payment of $200 pays $100 interest and $100 principal, then the skipped payment period pays nothing to the principal, but continues to accumulate $100 per payment skipped on the interest.
Until the additional interest is paid in full, none of the regular payment is posted against the principal. If you are allowed to skip payments, the interest would increase by $100 per month (using the figure above). 3 skipped payments would increase the amount $300 (probably more), and take 3 to 4 months of your regular payment to reduce the additional interest before any of your payment would again post against the principal.
Nancy
Warsaw,Missouri,
U.S.A.
Interest continues to accrue
#4Consumer Suggestion
Sat, March 27, 2004
Wen a credit company agrees to allow skipped payments, they are agreeing to delay reporting the information to the credit reporting agencies. The payments then must be resumed in accordance with the agreement.
While the payments are being skipped or defered by the customer, interest continues to accumulate at the same rate as before. If your payment of $200 pays $100 interest and $100 principal, then the skipped payment period pays nothing to the principal, but continues to accumulate $100 per payment skipped on the interest.
Until the additional interest is paid in full, none of the regular payment is posted against the principal. If you are allowed to skip payments, the interest would increase by $100 per month (using the figure above). 3 skipped payments would increase the amount $300 (probably more), and take 3 to 4 months of your regular payment to reduce the additional interest before any of your payment would again post against the principal.