Complaint Review: Drive Financial - Dallas Texas

I have to wonder if the folks there are commissioned based. I made my first payment last month and my second payment went out two days ago. I had to call them to get my account number for the first payment and got the third degree. They even asked me how many miles I had on the car. I can understand the insurance question but mileage??? Anyways, I was wondering about the commission because I've dealt with other creditors who get very rude when you try to talk to them as if they have a personal interest. Is it possible that these people are vested in your financial problems? After all, if it was only a job for them, they wouldn't care one way or another as long as they met their "call quota" or what ever their performance is based on. Nobody deserves to be treated like dirt and I personally am more apt to cooperate with someone who is friendly and understanding as apposed to someone who is rude.

At the end of the day, Drive is unethical. Their practices are unethical. Forget the terms of the loan, let's not glaze over the fact that they have degraded me, and violated my rights. I'm sorry, did we time warp back to the 50's and no one mentioned that to me? I'm in a much better financial situation now. I actually appreciate everything I went through with Drive, because at this stage of my life I'm much savvier regarding consumer loans. One thing I've never need assistance with is self esteem. I will not allow a person, who represents a company to treat me in a manner that I am not comfortable with. I don't think you can get more "personal" than attacking someone's race. I'm not sure if it's something you've ever experienced, but it's not the most pleasant of situations. I'll not recount the events of my life, but I've never let anyone get away with it before, and I'll not stand by and let it happen now. Thanks for the loan advice. That's always welcome, but you can't justify their actions by chalking it up as the economy needs collection activity.

First of all, Rule of 78 and Simple interest loans are two entirely different products. I recommend you research these loan types using google and compare the performance of the amount and date of when your payments were made. The type of financing is required to be noted at the top of your contract. Most second chase auto financing today will use the Rule of 78 interest accrual financing option with customers that have reported a solid 1-2 years of current payment habits on their credit report. They also consider customers that are more geographically stable (have not moved in 5 years or owns their own home and has 2-5 years of employment history with the same company). Why these customers? Because the Rule of 78 was created allowing (typically) the first 1/2 of your contracted monthly payments to pay a higher percentage of interest to principal. (The idea is to recover as much of their profit as soon as possible.) Then after you have reached the halfway mark, the same formula will begin to reverse and your final payment will represent the majority of your payment to be applied to principal and a lesser amount to interest. Most Rule of 78 loans will not even be considered for repossession until they have netted a pre-determined amount of interest. Does that sound harsh? Well, maybe if you were borrowing money from a friend. The reality is that Drive (by the way I do not currently work for Drive but have worked and am still working in a managerial role for 2 of its competitors) is in this business that the prime lenders will not touch because the institution wants to make money. Rule of 78 loans and simple interest loans (as well as actuarial loan types) have been around for over 45 years. The Federal Trade commission approves these methods of interest baring loans. So if you may have thought these loan types were instituted by the high-risk loan industry, I wanted to enlighten you. From reading your report, it stands to reason that that you probably have a simple interest loan. How do I know? Because the amount of interest was higher at the end of your contract and not the beginning. Although Jessica was close to the definition of this interest accruing method of lending, I would like to clarify some misconceptions. Simple Interest Loans are a moneymaking machine when your target consumer is guaranteed to repeat the bad habits of paying their debts past due. How can they determine what customers will repeat this behavior? The same way they determine those rule of 78 customers. Stability and credit reporting history. They also consider if you have recently had a vehicle repossed or have a discharged bankruptcy. Let's face it - it's called high-risk - because it's a crapshoot. The financial institutions are taking a risk that they may never see a dime from a customer and/or ever see the collateral again. Ask yourself - would you be willing to accept the same risk for even $5,000.00? The simple interest calculation is this: Principle Balance x annual percentage rate ( how big is the risk determines this) derived 365 (representing the number of days in a year). Your contract was created with the expectation that you would make your payments on or before the due date (means the payment would post to your account on or before your due date) If that happens, then what you agreed to pay for the collateral will be exactly what you paid for it. Now for the moneymaking machine payoff. Let's face it, bad things happen to good people. Consumer truly trying to rehabilitate their credit. Then we have a mix of the customers that just don't care about their credit any more and are just happy to be approved for a loan. The final customer types are those that never meant to make a payment at all and just disappear with the collateral (yes this really happens). Hoping that all these customer types accept the last is a half and half percentage; the financial institutions will bear enough profit to continue to provide lending approvals for customers that are considered high risk. It works like this: If the consumer waits more than 30 days between payments (not necessarily the due date of the contract - but the payment dates) then the equation of per-diem (per day) interest continues. What does that mean? That means when you make your payment more than 30 days after the last time you paid, (for every day after the 30th day the rest of the days comes off the top of your payment as interest. Here is an example: If your per-diem is 10.50. Your contract calculated that 315.00 of your payment would go to interest (based on 10.50 x 30 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then 135.00 would go to actually paying for the car. Let's take that a step further: You wait more than 30d days between your payments. Let's say you are like the majority of consumers that assume if they pay before it is 10 days past due, they will avoid a late charge and they win. Late charges have NOTHING WHATSOEVER to do with interest. Late fees are based on the state you live in state representatives and the Federal trade commission). Again, you take the same formula, only now it is the new calculations is not based on 30 days - it is based on 40 days because the payment was not received in 30 days. 10.50 If your per-diem is 10.50. Your contract calculated that 420.00 of your payment would go to interest (based on 10.50 x 40 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then $30.00 would go to actually paying for the car. In other words the amount that should have gone to principle was eaten up with interest because you waited to pay. Once the interest and principle is deducted from your remaining principle balance the calculation begins again. The key to keeping your interest accrual at the contracted rate is to make a payment every 30days. Based on your situation - the money you owe Drive is not interest - that was collected at the time the payment was made. It is the collateral principle balance that SHOULD have been paid if you had met the contractual obligations you agreed to. If you are truly attempting to re-establish your good credit - it is imperative that you educate yourself as a consumer. If a company's employees are investigated for too many FDCPA violations through the Attorney General Office, there will be an investigation by the federal government. The investigation results allow the company to respond and correct. If they do not then the government imposes mandatory recordings of all consumer contact and monthly FDCAP training. Policies in that corporation would have to change, etc. The company would remain under 'probation' until a time is determined that they would not be able to remedy the problem. Then, they lose their state license to effectuate collections in that state. Based on Drive's 'greediness' I believe you called it - would it REALLY be advantage to their ability to make a profit if they did not comply? If you still believe you were wronged. I recommend that you attempt to contact Drive in writing explaining (in an adult and professional manner) your concerns. If they do not satisfy your concerns with explanation or a change to their current business standards - do what most consumers would do with any VALID claim. Get an attorney. If the attorney agrees to take the case with no expense to you of you lose. Then your odds are usually good that the company will either settle or you will probably win the case. What WILL NOT affect them - is one person, one loan that has a complaint and chooses to address it as a personal attack. It is not personal, it's business. Another and final point to consider - what kind of interest rate do you believe the Federal Trade Commission would impose - if there were NO collections allowed. Collections help the economy. It's too bad that the consumer does not see the value of this tough job when they are able to buy a new car at 0% interest based on their excellent ability to pay on time and collections doing their job in correcting the customers that do not.

First of all, Rule of 78 and Simple interest loans are two entirely different products. I recommend you research these loan types using google and compare the performance of the amount and date of when your payments were made. The type of financing is required to be noted at the top of your contract. Most second chase auto financing today will use the Rule of 78 interest accrual financing option with customers that have reported a solid 1-2 years of current payment habits on their credit report. They also consider customers that are more geographically stable (have not moved in 5 years or owns their own home and has 2-5 years of employment history with the same company). Why these customers? Because the Rule of 78 was created allowing (typically) the first 1/2 of your contracted monthly payments to pay a higher percentage of interest to principal. (The idea is to recover as much of their profit as soon as possible.) Then after you have reached the halfway mark, the same formula will begin to reverse and your final payment will represent the majority of your payment to be applied to principal and a lesser amount to interest. Most Rule of 78 loans will not even be considered for repossession until they have netted a pre-determined amount of interest. Does that sound harsh? Well, maybe if you were borrowing money from a friend. The reality is that Drive (by the way I do not currently work for Drive but have worked and am still working in a managerial role for 2 of its competitors) is in this business that the prime lenders will not touch because the institution wants to make money. Rule of 78 loans and simple interest loans (as well as actuarial loan types) have been around for over 45 years. The Federal Trade commission approves these methods of interest baring loans. So if you may have thought these loan types were instituted by the high-risk loan industry, I wanted to enlighten you. From reading your report, it stands to reason that that you probably have a simple interest loan. How do I know? Because the amount of interest was higher at the end of your contract and not the beginning. Although Jessica was close to the definition of this interest accruing method of lending, I would like to clarify some misconceptions. Simple Interest Loans are a moneymaking machine when your target consumer is guaranteed to repeat the bad habits of paying their debts past due. How can they determine what customers will repeat this behavior? The same way they determine those rule of 78 customers. Stability and credit reporting history. They also consider if you have recently had a vehicle repossed or have a discharged bankruptcy. Let's face it - it's called high-risk - because it's a crapshoot. The financial institutions are taking a risk that they may never see a dime from a customer and/or ever see the collateral again. Ask yourself - would you be willing to accept the same risk for even $5,000.00? The simple interest calculation is this: Principle Balance x annual percentage rate ( how big is the risk determines this) derived 365 (representing the number of days in a year). Your contract was created with the expectation that you would make your payments on or before the due date (means the payment would post to your account on or before your due date) If that happens, then what you agreed to pay for the collateral will be exactly what you paid for it. Now for the moneymaking machine payoff. Let's face it, bad things happen to good people. Consumer truly trying to rehabilitate their credit. Then we have a mix of the customers that just don't care about their credit any more and are just happy to be approved for a loan. The final customer types are those that never meant to make a payment at all and just disappear with the collateral (yes this really happens). Hoping that all these customer types accept the last is a half and half percentage; the financial institutions will bear enough profit to continue to provide lending approvals for customers that are considered high risk. It works like this: If the consumer waits more than 30 days between payments (not necessarily the due date of the contract - but the payment dates) then the equation of per-diem (per day) interest continues. What does that mean? That means when you make your payment more than 30 days after the last time you paid, (for every day after the 30th day the rest of the days comes off the top of your payment as interest. Here is an example: If your per-diem is 10.50. Your contract calculated that 315.00 of your payment would go to interest (based on 10.50 x 30 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then 135.00 would go to actually paying for the car. Let's take that a step further: You wait more than 30d days between your payments. Let's say you are like the majority of consumers that assume if they pay before it is 10 days past due, they will avoid a late charge and they win. Late charges have NOTHING WHATSOEVER to do with interest. Late fees are based on the state you live in state representatives and the Federal trade commission). Again, you take the same formula, only now it is the new calculations is not based on 30 days - it is based on 40 days because the payment was not received in 30 days. 10.50 If your per-diem is 10.50. Your contract calculated that 420.00 of your payment would go to interest (based on 10.50 x 40 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then $30.00 would go to actually paying for the car. In other words the amount that should have gone to principle was eaten up with interest because you waited to pay. Once the interest and principle is deducted from your remaining principle balance the calculation begins again. The key to keeping your interest accrual at the contracted rate is to make a payment every 30days. Based on your situation - the money you owe Drive is not interest - that was collected at the time the payment was made. It is the collateral principle balance that SHOULD have been paid if you had met the contractual obligations you agreed to. If you are truly attempting to re-establish your good credit - it is imperative that you educate yourself as a consumer. If a company's employees are investigated for too many FDCPA violations through the Attorney General Office, there will be an investigation by the federal government. The investigation results allow the company to respond and correct. If they do not then the government imposes mandatory recordings of all consumer contact and monthly FDCAP training. Policies in that corporation would have to change, etc. The company would remain under 'probation' until a time is determined that they would not be able to remedy the problem. Then, they lose their state license to effectuate collections in that state. Based on Drive's 'greediness' I believe you called it - would it REALLY be advantage to their ability to make a profit if they did not comply? If you still believe you were wronged. I recommend that you attempt to contact Drive in writing explaining (in an adult and professional manner) your concerns. If they do not satisfy your concerns with explanation or a change to their current business standards - do what most consumers would do with any VALID claim. Get an attorney. If the attorney agrees to take the case with no expense to you of you lose. Then your odds are usually good that the company will either settle or you will probably win the case. What WILL NOT affect them - is one person, one loan that has a complaint and chooses to address it as a personal attack. It is not personal, it's business. Another and final point to consider - what kind of interest rate do you believe the Federal Trade Commission would impose - if there were NO collections allowed. Collections help the economy. It's too bad that the consumer does not see the value of this tough job when they are able to buy a new car at 0% interest based on their excellent ability to pay on time and collections doing their job in correcting the customers that do not.

First of all, Rule of 78 and Simple interest loans are two entirely different products. I recommend you research these loan types using google and compare the performance of the amount and date of when your payments were made. The type of financing is required to be noted at the top of your contract. Most second chase auto financing today will use the Rule of 78 interest accrual financing option with customers that have reported a solid 1-2 years of current payment habits on their credit report. They also consider customers that are more geographically stable (have not moved in 5 years or owns their own home and has 2-5 years of employment history with the same company). Why these customers? Because the Rule of 78 was created allowing (typically) the first 1/2 of your contracted monthly payments to pay a higher percentage of interest to principal. (The idea is to recover as much of their profit as soon as possible.) Then after you have reached the halfway mark, the same formula will begin to reverse and your final payment will represent the majority of your payment to be applied to principal and a lesser amount to interest. Most Rule of 78 loans will not even be considered for repossession until they have netted a pre-determined amount of interest. Does that sound harsh? Well, maybe if you were borrowing money from a friend. The reality is that Drive (by the way I do not currently work for Drive but have worked and am still working in a managerial role for 2 of its competitors) is in this business that the prime lenders will not touch because the institution wants to make money. Rule of 78 loans and simple interest loans (as well as actuarial loan types) have been around for over 45 years. The Federal Trade commission approves these methods of interest baring loans. So if you may have thought these loan types were instituted by the high-risk loan industry, I wanted to enlighten you. From reading your report, it stands to reason that that you probably have a simple interest loan. How do I know? Because the amount of interest was higher at the end of your contract and not the beginning. Although Jessica was close to the definition of this interest accruing method of lending, I would like to clarify some misconceptions. Simple Interest Loans are a moneymaking machine when your target consumer is guaranteed to repeat the bad habits of paying their debts past due. How can they determine what customers will repeat this behavior? The same way they determine those rule of 78 customers. Stability and credit reporting history. They also consider if you have recently had a vehicle repossed or have a discharged bankruptcy. Let's face it - it's called high-risk - because it's a crapshoot. The financial institutions are taking a risk that they may never see a dime from a customer and/or ever see the collateral again. Ask yourself - would you be willing to accept the same risk for even $5,000.00? The simple interest calculation is this: Principle Balance x annual percentage rate ( how big is the risk determines this) derived 365 (representing the number of days in a year). Your contract was created with the expectation that you would make your payments on or before the due date (means the payment would post to your account on or before your due date) If that happens, then what you agreed to pay for the collateral will be exactly what you paid for it. Now for the moneymaking machine payoff. Let's face it, bad things happen to good people. Consumer truly trying to rehabilitate their credit. Then we have a mix of the customers that just don't care about their credit any more and are just happy to be approved for a loan. The final customer types are those that never meant to make a payment at all and just disappear with the collateral (yes this really happens). Hoping that all these customer types accept the last is a half and half percentage; the financial institutions will bear enough profit to continue to provide lending approvals for customers that are considered high risk. It works like this: If the consumer waits more than 30 days between payments (not necessarily the due date of the contract - but the payment dates) then the equation of per-diem (per day) interest continues. What does that mean? That means when you make your payment more than 30 days after the last time you paid, (for every day after the 30th day the rest of the days comes off the top of your payment as interest. Here is an example: If your per-diem is 10.50. Your contract calculated that 315.00 of your payment would go to interest (based on 10.50 x 30 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then 135.00 would go to actually paying for the car. Let's take that a step further: You wait more than 30d days between your payments. Let's say you are like the majority of consumers that assume if they pay before it is 10 days past due, they will avoid a late charge and they win. Late charges have NOTHING WHATSOEVER to do with interest. Late fees are based on the state you live in state representatives and the Federal trade commission). Again, you take the same formula, only now it is the new calculations is not based on 30 days - it is based on 40 days because the payment was not received in 30 days. 10.50 If your per-diem is 10.50. Your contract calculated that 420.00 of your payment would go to interest (based on 10.50 x 40 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then $30.00 would go to actually paying for the car. In other words the amount that should have gone to principle was eaten up with interest because you waited to pay. Once the interest and principle is deducted from your remaining principle balance the calculation begins again. The key to keeping your interest accrual at the contracted rate is to make a payment every 30days. Based on your situation - the money you owe Drive is not interest - that was collected at the time the payment was made. It is the collateral principle balance that SHOULD have been paid if you had met the contractual obligations you agreed to. If you are truly attempting to re-establish your good credit - it is imperative that you educate yourself as a consumer. If a company's employees are investigated for too many FDCPA violations through the Attorney General Office, there will be an investigation by the federal government. The investigation results allow the company to respond and correct. If they do not then the government imposes mandatory recordings of all consumer contact and monthly FDCAP training. Policies in that corporation would have to change, etc. The company would remain under 'probation' until a time is determined that they would not be able to remedy the problem. Then, they lose their state license to effectuate collections in that state. Based on Drive's 'greediness' I believe you called it - would it REALLY be advantage to their ability to make a profit if they did not comply? If you still believe you were wronged. I recommend that you attempt to contact Drive in writing explaining (in an adult and professional manner) your concerns. If they do not satisfy your concerns with explanation or a change to their current business standards - do what most consumers would do with any VALID claim. Get an attorney. If the attorney agrees to take the case with no expense to you of you lose. Then your odds are usually good that the company will either settle or you will probably win the case. What WILL NOT affect them - is one person, one loan that has a complaint and chooses to address it as a personal attack. It is not personal, it's business. Another and final point to consider - what kind of interest rate do you believe the Federal Trade Commission would impose - if there were NO collections allowed. Collections help the economy. It's too bad that the consumer does not see the value of this tough job when they are able to buy a new car at 0% interest based on their excellent ability to pay on time and collections doing their job in correcting the customers that do not.

First of all, Rule of 78 and Simple interest loans are two entirely different products. I recommend you research these loan types using google and compare the performance of the amount and date of when your payments were made. The type of financing is required to be noted at the top of your contract. Most second chase auto financing today will use the Rule of 78 interest accrual financing option with customers that have reported a solid 1-2 years of current payment habits on their credit report. They also consider customers that are more geographically stable (have not moved in 5 years or owns their own home and has 2-5 years of employment history with the same company). Why these customers? Because the Rule of 78 was created allowing (typically) the first 1/2 of your contracted monthly payments to pay a higher percentage of interest to principal. (The idea is to recover as much of their profit as soon as possible.) Then after you have reached the halfway mark, the same formula will begin to reverse and your final payment will represent the majority of your payment to be applied to principal and a lesser amount to interest. Most Rule of 78 loans will not even be considered for repossession until they have netted a pre-determined amount of interest. Does that sound harsh? Well, maybe if you were borrowing money from a friend. The reality is that Drive (by the way I do not currently work for Drive but have worked and am still working in a managerial role for 2 of its competitors) is in this business that the prime lenders will not touch because the institution wants to make money. Rule of 78 loans and simple interest loans (as well as actuarial loan types) have been around for over 45 years. The Federal Trade commission approves these methods of interest baring loans. So if you may have thought these loan types were instituted by the high-risk loan industry, I wanted to enlighten you. From reading your report, it stands to reason that that you probably have a simple interest loan. How do I know? Because the amount of interest was higher at the end of your contract and not the beginning. Although Jessica was close to the definition of this interest accruing method of lending, I would like to clarify some misconceptions. Simple Interest Loans are a moneymaking machine when your target consumer is guaranteed to repeat the bad habits of paying their debts past due. How can they determine what customers will repeat this behavior? The same way they determine those rule of 78 customers. Stability and credit reporting history. They also consider if you have recently had a vehicle repossed or have a discharged bankruptcy. Let's face it - it's called high-risk - because it's a crapshoot. The financial institutions are taking a risk that they may never see a dime from a customer and/or ever see the collateral again. Ask yourself - would you be willing to accept the same risk for even $5,000.00? The simple interest calculation is this: Principle Balance x annual percentage rate ( how big is the risk determines this) derived 365 (representing the number of days in a year). Your contract was created with the expectation that you would make your payments on or before the due date (means the payment would post to your account on or before your due date) If that happens, then what you agreed to pay for the collateral will be exactly what you paid for it. Now for the moneymaking machine payoff. Let's face it, bad things happen to good people. Consumer truly trying to rehabilitate their credit. Then we have a mix of the customers that just don't care about their credit any more and are just happy to be approved for a loan. The final customer types are those that never meant to make a payment at all and just disappear with the collateral (yes this really happens). Hoping that all these customer types accept the last is a half and half percentage; the financial institutions will bear enough profit to continue to provide lending approvals for customers that are considered high risk. It works like this: If the consumer waits more than 30 days between payments (not necessarily the due date of the contract - but the payment dates) then the equation of per-diem (per day) interest continues. What does that mean? That means when you make your payment more than 30 days after the last time you paid, (for every day after the 30th day the rest of the days comes off the top of your payment as interest. Here is an example: If your per-diem is 10.50. Your contract calculated that 315.00 of your payment would go to interest (based on 10.50 x 30 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then 135.00 would go to actually paying for the car. Let's take that a step further: You wait more than 30d days between your payments. Let's say you are like the majority of consumers that assume if they pay before it is 10 days past due, they will avoid a late charge and they win. Late charges have NOTHING WHATSOEVER to do with interest. Late fees are based on the state you live in state representatives and the Federal trade commission). Again, you take the same formula, only now it is the new calculations is not based on 30 days - it is based on 40 days because the payment was not received in 30 days. 10.50 If your per-diem is 10.50. Your contract calculated that 420.00 of your payment would go to interest (based on 10.50 x 40 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then $30.00 would go to actually paying for the car. In other words the amount that should have gone to principle was eaten up with interest because you waited to pay. Once the interest and principle is deducted from your remaining principle balance the calculation begins again. The key to keeping your interest accrual at the contracted rate is to make a payment every 30days. Based on your situation - the money you owe Drive is not interest - that was collected at the time the payment was made. It is the collateral principle balance that SHOULD have been paid if you had met the contractual obligations you agreed to. If you are truly attempting to re-establish your good credit - it is imperative that you educate yourself as a consumer. If a company's employees are investigated for too many FDCPA violations through the Attorney General Office, there will be an investigation by the federal government. The investigation results allow the company to respond and correct. If they do not then the government imposes mandatory recordings of all consumer contact and monthly FDCAP training. Policies in that corporation would have to change, etc. The company would remain under 'probation' until a time is determined that they would not be able to remedy the problem. Then, they lose their state license to effectuate collections in that state. Based on Drive's 'greediness' I believe you called it - would it REALLY be advantage to their ability to make a profit if they did not comply? If you still believe you were wronged. I recommend that you attempt to contact Drive in writing explaining (in an adult and professional manner) your concerns. If they do not satisfy your concerns with explanation or a change to their current business standards - do what most consumers would do with any VALID claim. Get an attorney. If the attorney agrees to take the case with no expense to you of you lose. Then your odds are usually good that the company will either settle or you will probably win the case. What WILL NOT affect them - is one person, one loan that has a complaint and chooses to address it as a personal attack. It is not personal, it's business. Another and final point to consider - what kind of interest rate do you believe the Federal Trade Commission would impose - if there were NO collections allowed. Collections help the economy. It's too bad that the consumer does not see the value of this tough job when they are able to buy a new car at 0% interest based on their excellent ability to pay on time and collections doing their job in correcting the customers that do not.

First of all, Rule of 78 and Simple interest loans are two entirely different products. I recommend you research these loan types using google and compare the performance of the amount and date of when your payments were made. The type of financing is required to be noted at the top of your contract. Most second chase auto financing today will use the Rule of 78 interest accrual financing option with customers that have reported a solid 1-2 years of current payment habits on their credit report. They also consider customers that are more geographically stable (have not moved in 5 years or owns their own home and has 2-5 years of employment history with the same company). Why these customers? Because the Rule of 78 was created allowing (typically) the first 1/2 of your contracted monthly payments to pay a higher percentage of interest to principal. (The idea is to recover as much of their profit as soon as possible.) Then after you have reached the halfway mark, the same formula will begin to reverse and your final payment will represent the majority of your payment to be applied to principal and a lesser amount to interest. Most Rule of 78 loans will not even be considered for repossession until they have netted a pre-determined amount of interest. Does that sound harsh? Well, maybe if you were borrowing money from a friend. The reality is that Drive (by the way I do not currently work for Drive but have worked and am still working in a managerial role for 2 of its competitors) is in this business that the prime lenders will not touch because the institution wants to make money. Rule of 78 loans and simple interest loans (as well as actuarial loan types) have been around for over 45 years. The Federal Trade commission approves these methods of interest baring loans. So if you may have thought these loan types were instituted by the high-risk loan industry, I wanted to enlighten you. From reading your report, it stands to reason that that you probably have a simple interest loan. How do I know? Because the amount of interest was higher at the end of your contract and not the beginning. Although Jessica was close to the definition of this interest accruing method of lending, I would like to clarify some misconceptions. Simple Interest Loans are a moneymaking machine when your target consumer is guaranteed to repeat the bad habits of paying their debts past due. How can they determine what customers will repeat this behavior? The same way they determine those rule of 78 customers. Stability and credit reporting history. They also consider if you have recently had a vehicle repossed or have a discharged bankruptcy. Let's face it - it's called high-risk - because it's a crapshoot. The financial institutions are taking a risk that they may never see a dime from a customer and/or ever see the collateral again. Ask yourself - would you be willing to accept the same risk for even $5,000.00? The simple interest calculation is this: Principle Balance x annual percentage rate ( how big is the risk determines this) derived 365 (representing the number of days in a year). Your contract was created with the expectation that you would make your payments on or before the due date (means the payment would post to your account on or before your due date) If that happens, then what you agreed to pay for the collateral will be exactly what you paid for it. Now for the moneymaking machine payoff. Let's face it, bad things happen to good people. Consumer truly trying to rehabilitate their credit. Then we have a mix of the customers that just don't care about their credit any more and are just happy to be approved for a loan. The final customer types are those that never meant to make a payment at all and just disappear with the collateral (yes this really happens). Hoping that all these customer types accept the last is a half and half percentage; the financial institutions will bear enough profit to continue to provide lending approvals for customers that are considered high risk. It works like this: If the consumer waits more than 30 days between payments (not necessarily the due date of the contract - but the payment dates) then the equation of per-diem (per day) interest continues. What does that mean? That means when you make your payment more than 30 days after the last time you paid, (for every day after the 30th day the rest of the days comes off the top of your payment as interest. Here is an example: If your per-diem is 10.50. Your contract calculated that 315.00 of your payment would go to interest (based on 10.50 x 30 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then 135.00 would go to actually paying for the car. Let's take that a step further: You wait more than 30d days between your payments. Let's say you are like the majority of consumers that assume if they pay before it is 10 days past due, they will avoid a late charge and they win. Late charges have NOTHING WHATSOEVER to do with interest. Late fees are based on the state you live in state representatives and the Federal trade commission). Again, you take the same formula, only now it is the new calculations is not based on 30 days - it is based on 40 days because the payment was not received in 30 days. 10.50 If your per-diem is 10.50. Your contract calculated that 420.00 of your payment would go to interest (based on 10.50 x 40 days). The remainder would go to principle (the metal, the collateral). So if you car payment is 450.00 (for an example) then $30.00 would go to actually paying for the car. In other words the amount that should have gone to principle was eaten up with interest because you waited to pay. Once the interest and principle is deducted from your remaining principle balance the calculation begins again. The key to keeping your interest accrual at the contracted rate is to make a payment every 30days. Based on your situation - the money you owe Drive is not interest - that was collected at the time the payment was made. It is the collateral principle balance that SHOULD have been paid if you had met the contractual obligations you agreed to. If you are truly attempting to re-establish your good credit - it is imperative that you educate yourself as a consumer. If a company's employees are investigated for too many FDCPA violations through the Attorney General Office, there will be an investigation by the federal government. The investigation results allow the company to respond and correct. If they do not then the government imposes mandatory recordings of all consumer contact and monthly FDCAP training. Policies in that corporation would have to change, etc. The company would remain under 'probation' until a time is determined that they would not be able to remedy the problem. Then, they lose their state license to effectuate collections in that state. Based on Drive's 'greediness' I believe you called it - would it REALLY be advantage to their ability to make a profit if they did not comply? If you still believe you were wronged. I recommend that you attempt to contact Drive in writing explaining (in an adult and professional manner) your concerns. If they do not satisfy your concerns with explanation or a change to their current business standards - do what most consumers would do with any VALID claim. Get an attorney. If the attorney agrees to take the case with no expense to you of you lose. Then your odds are usually good that the company will either settle or you will probably win the case. What WILL NOT affect them - is one person, one loan that has a complaint and chooses to address it as a personal attack. It is not personal, it's business. Another and final point to consider - what kind of interest rate do you believe the Federal Trade Commission would impose - if there were NO collections allowed. Collections help the economy. It's too bad that the consumer does not see the value of this tough job when they are able to buy a new car at 0% interest based on their excellent ability to pay on time and collections doing their job in correcting the customers that do not.

I am a collector for a financial instituiton in this area, however it is not Drive. My company is also an "second-chance" financing company that works with simple-interest loans (the rule of 78's) and with people who either have no credit or "bad" credit. And of course, I am also a Drive customer... Basically you signed a contract stating that you owe a certain amount of money for your car that you are to pay on the due date every month or your loan. Because of your simple interest loan a certain amount of every monthly payment goes to interest and the remainder goes to your principle. The amount that goes to interest is called your perdiem (per day). As you continue to pay your car note ON THE DUE DATE this perdiem will go down every month, which in turn will pay off your car for the amount you signed on your contract. ANY TIME that the payment is made after the due date a portion of your perdiem is carried over to the next month and therefore you end up paying more in interest and you will have a "balloon" payment on your maturity date. An extention or deferrment of a payment, while helping you for the month, hurts you in the end. The month that you did not make a pymnt will still have perdeim, and ALL of the perdiem will be carried over to the next month. As for the company "harassing" you. Well, this is a very popular word for those of us in the collection world. According the FDCPA, (if you are not a third-party collection agency) you have the right to call your customer and MAKE CONTACT once a day. Contact does not include speaking to a third party or leaving a message. Even if that person said that you had already sent your payment. Drives employees using racial slurs, or threats of violence was completely out of line and completely against the companys rules. I am POSITIVE that Drive does not encourage this kind of behavior. I am certain of this because I know that Drive does not want law suits, and is fully aware that many customers record every conversation that they have with its employee's. I agree with Tom from Arlington that you should report this, either with a MANAGER at the company, or to the BBR. My best advice to give, if you'll have it, is to make the payments on the due date every month. I know that doing a check over the phone is the easiest way to have your payment there on the actual due date, and I also know that if you tell the rep that you are speaking to that you will just mail your payment in instead of paying the fee that they will then waive the fee for you. (Or that has been my person experience with Drive). As far as waiting for your title, it takes about five business days for you to get your payment to them, about 3 more business days for them to process and post it, and about 10 more business days for it to get to you in the mail. And I'm sorry to say, that if your payment history hasn't been great with Drive you will be hard-pressed to find another financial institution that has a different kind of loan, or different collection techniques. When you borrow that much money from a company they are going to be sure to get it back from you, with a little extra on top for themselves, otherwise they wouldn't have leant the money out in the first place.

I posted a report here. This is a very helpful site. I have some suggestions to those that would post here: 1. Write your report in another program such as Microsoft Word. Run spell check on your document and then post it. Your responses will elicit a much greater response if it comes across legibly. I say this to be helpful. I have read almost every posting, and will make sure to read all within the next few days. 2. To Tom: Not all that finance through Drive Financial Services are irresponsible'. Sure, many are, but some are just people that had a moment of bad luck. Let's take me as an example; I had wonderful credit one year. I got married, bought a 250k dollar home. Six months later my new wife turns out to be, let's say a very bad person. I file for an annulment and then a bankruptcy due to the legal costs I incur. I am able to get a used vehicle that is financed thru DFS. I have made every payment on time. There is no issue. The vehicle was removed from the bankruptcy filing and all seems well, till I figure out that for the year I have been with DFS, I have not received a single statement or bill since the first one. The bankruptcy was discharged in the middle of last year and still, not a single statement from Drive. I have asked and asked so many times that my boss thought I spent more time on the phone with DFS than taking business calls. They were rude, belligerent, and went so far as to tell me that they did not have to send me anything and that I got myself into this mess. I have yet to get ANY paperwork from them and so now, I am doing what I can to get refinanced and I am worried, after reading all these posts, that I am going to fight one hardship after another. So, what do I suggest? Folks: money orders. Send them in 1-2 weeks early. Send everything certified; it is not too much extra and well worth it. I have spoken with the credit union I am working through and warned them that we may be dealing with a hostile lender' so they are prepared to help me resolve this without too much stress on me. Not all people are irresponsible trailer-park trash' as some would make us feel. I would say that Tom, you may be a nice guy in real life, but your attitude does not lend to anything but a degrading feeling and I am a hard-working person that pays his bills. Good luck to all of you and God bless!

What can you expect? I paid off my account, and wouldn't you know it, I have to jump through hoops to get the title. It's been two weeks since they recevied the check, but they say it hasn't been processed. So, what is Drive really after, money? They got their money, are they just that incompitent? You just can't win, no matter what. If your late, if your accounts paid off it doesn't matter. They just can't get it right.

LAUREN THE REASON THAT YOU WERE BASICALLY LEFT WITH CHOICH OF SIGNING A RULE OF 78'S LOAN WITH A COMPANY LIKE DRIVE ARE WALKING TO WORK IS BECAUSE YOU FAILED TO PAY BACK ALL OF TH REPUTABLE COMPANIES THAT LOANED YOU MONEY BEFORE THAT.*(THE REASON I KNOW THAT IS BECAUSE IF YOUR CREDIT WAS BETTER YOUR DEALER WOULD HAVE GONE THROUGH ANOTHER BANK TO AVOID THE LARGE FEES THAT DRIVE CHARGES THEM) DRIVE IS A COMPANY THAT KNOWS YOU HAVE NO CHOICE BECAUSE ALL OTHER BANKS CONSIDER YOU A HIGH CREDIT RISK AND UNFORTUNATLY THEY CHARGE INTEREST THE WAY THAT THEY DO BECAUSE THEY KNOW THAT BASED ON YOUR PAST PAYMENT HISTORY YOU WILL PROBABLY NEVER PAY IT ALL BACK ANYWAY. WHICH IS EXACTLY WHAT HAPPENED. MY ADVISE TO YOU IF YOU WANT TO BE ABLE TO GET BETTER LOANS IS TO SUCK IT UP PAY YOUR BILLS ON TIME REGARLESS OF WHETHER YOU LIKE THE PEOPLE OR NOT SO THAT YOU CAN REBUILD YOUR CREDIT STATUS. I KNOW THAT IT'S FRUSTRATING BUT THE WAY YOU ARE HANDELING IT IS ONLY HURTING YOU.

As of right now, Drive Financial is suing me. I have gone to the FTC the Better Business Bureau, and the ACLU. Drive has managed to con them all. I no longer have the car it was repossessed as far as I know. I recently inherited a house that has been in my family for 80 years, and I stand to lose it all because of these greedy poachers. I try to live life with out regrets, and up to now I have been successful. However, I regret the day I ever signed anything that had the name Drive Financial on it. Furthermore, I wish there was more strength in numbers, and we all could rise up and slay Goliath. I hope America will stand behind the principles on which it was founded, and this predator will be forced to atone for their indecent business practices. To all of the fellow victims please know I will not go away quietly, and I will continue to keep you updated. For any potential Drive employees who will attempt to rebut this statement, answer one question for me, if you would be so kind, "How do you sleep at night?"

I thoroughly understand what Tom explained in his message; however, my main complaint is that this company treats its customers as if we are not people. Let me give you an example of what I mean. On July 24, I was unable to send a payment and the company followed-up by calling me at work. Previously, I sent a fax explaining my company's policy against receiving personal phone calls at work. Stephan says, Where is the payment you promised to send. Before I could explain, he said, You know what-Don't call me anymore. I am going to turn this over to collections. You are a blank blank dead beat. Stephan, after having said this, hung up on me. Keep this in mind. Stephan and I previously talked about the payment arrangement. My payment was contingent upon the closing of my house that same day, which unfortunately did not happen. Moreover, my complaint is further justified by Stephan's call to my aunt. He insisted that my aunt was I. He went on to explain to my aunt all my personal business with the car and told her to stop playing on the telephone, as he believed my aunt was I. He also commented that he could not understand UPITY BLACK PEOPLE. This is after she insisted that he stop disclosing my information. What kind of company trains its people to deal with the public in this manner? I can no longer and will not tolerate the harassment from this company. As you explain, I will contact the FTC and the ACLU and register my complaint. Something will be done about all of this. Surely you can understand my consternation.

Before you accuse someone of being IGNORANT, maybe you should review your message and get a better grasp of the English language. While you are at it, review the contents of my message, I never said that it was "my story", I was quoting stories in various Drive Financial Rip-Off Reports contained on this web site. FYI, I now have a new vehicle with a "normal" lending institution. But just because I was fortunate enough to be able to acquire financing through a reputable lender doesn't mean that the experiences that other people are having with a predatory lender like Drive are any less important. Nor does having Drive as a lender make anyone stupid or ignorant, sometimes it is just the result of unfortunate circumstances, which I can assume you have never experienced by your callous replies. Until you have experienced Drive first-hand you are not qualified to comment about experiences other have had. And by the way, since you seem to have the perfect life, assume you are qualified to judge others without even knowing their circumstances still means only one thing....your Drive through and through!

No you IGNORANT person I dont work for drive. I am just know a lot more than you seem to. I have never CONDONED the actions you described. In fact I will be the first to tell you to RUN, not walk to your LOCAL LAW ENFORCEMENT. What you described could be considered several crimes. Breaking & Entering, Terroristic Thtreats & others. All of which happen to be FELONIES. However I personally dont believe your story. Sounds a little far fetched to me. What I do believe is you are a person with BAD CREDIT cause you dnt pay your bills and think you can just take whatever SELF-HELP you want. Well TOUGH, it doesnt work that way. You signed a CONTRACT & unless someone was holding a GUN TO YOUR HEAD or such, you are obligated by it. So if you made a BAD DECISION that is your problem. Drive just happens to be in business to make money off of people like you & they will continue to do so. Dont like it, well PAY YOUR BILLS & get good credit & go buy a car at a Dealership like NORMAL PEOPLE. Until then you will pay the price for being irresonsibile.

Not everyone with bad credit is a deadbeat, but many are. Companies can't tell in advance who's who. When they choose to deal with this customer group, they're playing a numbers game. They end up approving a lot of deadbeats not because they're generous or stupid, but because they have to to get to the good customers. These good customers have to be TOTALLY RIPPED OFF in order for the company to profit overall while they're losing money on so many deadbeats. So if you're a good customer, don't deal with subprime companies because they WILL rip you off. And treat you like a deadbeat for it.

Tom from Arlington - The only explanation for your response is the fact that you are an employee of Drive, trying to disguise who you really are. This must be one of the characteristics that Drive looks for in their employees along with lying, deceitfulness, ruthlessness, etc. Have you not read some of the reports on Drive contained in this web site. They are major offenders of the law and have a total lack of morals. So therefore anyone they hire must also possess these qualities, which explains your response. What about the fact that a Drive Representative misrepresented himself as a law enforcement officer and forced his way into a home, conveniently while the only person in the residence at the time was a blind man, and rifled through drawers, papers, etc. while this poor man could do nothing to stop him. And the occupants of the residence were only the co-signers on a Drive loan, not even the primary purchaser. Does this sound like a company a normal person would defend? Anyone that has had contact with Drive knows they are ruthless and until someone steps in with enough legal power to stop them they are going to continue to prey on the very people that need assistance the most. I will ALWAYS regret doing business with them, they even treat their good customers poorly. I know the Texas Attorney General's Office has acquired quite a collection of complaints regarding Drive and it will only be a matter of time before they are required to answer for what they have done. So enjoy your paycheck until them becase the walls are going to come tumbling down and when prospective employers see that you have been one of Drive's henchmen good luck on acquiring any type of reputable employment!

>>>Is it OK for Drive to use racial slanders and disclose my account information to my co-workers and family? NO it is not. Get proof of this & file a complaint with the FTC. There are credit laws that prohibit this. >>>Is it OK for Drive to send someone to my place of employment. Depends, were they trying to REPOSSES the car ??? If so, YES they have a right to do this. Or were they trying to serve you LEGAL PAPERS then YES they are allowed to do this. >>>Is it OK for drive to take more than the 24.9% of my payment and post it to interest. YES it is. Under the contract you signed, if the intereste is 24.9% then that is what they are entitled to. And if you signed it based upon the interest method of "RULES of 78" then most all of your payments during the first 2/3 to 3/4 of your note will be interest. >>>Is it ok for drive to take money that I sent for a payment and post it elsewhere? Depends, where did they post it to. Did they post it for COLLECTION EFFORTS of some other thing that was probably listed in your contract. Once again, YOU signed a LEGAL DOCUMENT and made a LEGAL AGREEMENT. Now live up to it. Just because you find out later you made a BAD DECISION is not their fault & doesnt mean they are ripping you off. No one forced you into this deal. So QUIT WHINING & PAY YOUR BILLS !!!!

Is it OK for Drive to use racial slanders and disclose my account information to my co-workers and family? Is it OK for Drive to send someone to my place of employment. Is it OK for drive to take more than the 24.9% of my payment and post it to interest. Is it ok for drive to take money that I sent for a payment and post it elsewhere? I don't think so!

You need to read the CONTRACT before you sign anything. They are probably using a FINANCE method called the "Rule of 78's" which loads up ALL the interest on the loan on the front end. This is LEGAL and you signed a LEGAL DOCUMENT agreeing to it. If however you dont continue paying what is owed, they can REPO your vehicle as they should have a LIEN against it since you are using it as COLLATERAL on the loan. So once again DRIVE has done nothing ILLEGAL and you were STUPID to sign a BAD CONTRACT agreement. Only when you realize it a few years later do you want to complain. SORRY, NO SYMPATHY. You made your deal, now you have to live with it. While these type of contract may not be nice & consumer friendly, they are LEGAL and if you agree to it, you are bound by it. Go back & RE-READ the contract & see if they have broken any part of it, or is it just you wanting to break it cause you dont like it now........