- Report: #30770
Complaint Review: Fairbanks Capital Jacksonville VA - Jacksonville Florida
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Fairbanks Capital Jacksonville VA
10401 Deerwook Park Blvd., Jacksonville, 32255 Florida, U.S.A.
Phone:
800-944-1212
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Fairbanks Capital ripoff Questionable Business Practice fraudulent rip-off business Jacksonville Florida
Have you ever heard of a loan that you were penalized for making your payment early?
Our mortage was sold to Fairbanks several months ago. I made a payment on 8/5/02 and another on 8/30/02.
When I received my October statement, the amount of the princple payment for the August 30 payment was almost $100 less that the princple payment for the August 5 payment.
When I called and told them I believed they had made a mistake, I was told by someone named Tina that this was a daily simple interest loan and that if my payment was not made on the SAME day each month that the interest would be more if we paid early. She told me that "I didn't understand".
I am an accounting major and one thing I do understand, payment made on time or early do not accrue more interest.
I am in the process of securing another loan. God only knows how much money they have gotten illegally. Someone needs to put a stop to this.
Haven't they ever heard of Enron?
he
Richmond, Virginia
Our mortage was sold to Fairbanks several months ago. I made a payment on 8/5/02 and another on 8/30/02.
When I received my October statement, the amount of the princple payment for the August 30 payment was almost $100 less that the princple payment for the August 5 payment.
When I called and told them I believed they had made a mistake, I was told by someone named Tina that this was a daily simple interest loan and that if my payment was not made on the SAME day each month that the interest would be more if we paid early. She told me that "I didn't understand".
I am an accounting major and one thing I do understand, payment made on time or early do not accrue more interest.
I am in the process of securing another loan. God only knows how much money they have gotten illegally. Someone needs to put a stop to this.
Haven't they ever heard of Enron?
he
Richmond, Virginia
1 Updates & Rebuttals
Cindy
St. Augustine,Florida,
How to benefit with a DAILY SIMPLE INTEREST LOAN
#2Consumer Suggestion
Sat, November 09, 2002
The customer service rep that you spoke with is PARTIALLY correct. With a daily simple interest loan, the interest accrues on a daily basis. Therefore in a small example if you paid your payments on time or even early you would need to continue that. If you make a payment on 1/1/02 and another on 1/28/02 the payment on 1/28/02 had 28 days of interest to accrue so the interest would be less. Now if you choose to not pay another payment for March until 3/10/02 now even though you are within your grace period, you allowed 40 days inbetween payments and 40 days worth of interest to accrue. If you want a daily simple interest loan to work like a conventional loan then you do in fact need to have an automatic withdrawal on the same day every month to prevent excessive days between payments. Now if you want to benefit from this loan, and provided your company will allow this. You need to make a 1/2 of a payment every 14 days. This way you would be making 26 full payments in a year. As long as you have no other fees your money should be going mostly to principle because you are not allowing the interest to accrue as quickly and as your principle goes down the interest is accrue on a lessor amount.
