- Report: #1116887
Complaint Review: First Investors Financial Serv group - Select State/Province
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First Investors Financial Serv group
Select State/Province, USA
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www.fifsg.com
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First Investors Financial Serv group Fifsg Auto Loan Deception Alabama
Now granted my credit history is my fault, but I believe FIFSG's deceptive practices should be investigated for the following reasons. When I pay my vehicle loan, almost half of my payment is taken as interest not principle. How is this possible because my rate of interest is 17 percent and I have been paying on time for over two years on this vehicle.
Also, when in speaking to reps, they tell me I need to pay faster for my more of my payment to apply to principle. Again, how is this possible? My monthly payment is due on the 20th of each month. The closer to the due date I wait but still prior to the due date the interest is increased. Increased to at times over 50 percent. Then a "per diem" charge is placed against my account.
I understand the errors I made reference my credit history, but to be taken advantage of by FIFSG has hurt my ability to rebuild my credit faster.
Be be very very cautious taking an auto loan from fifsg. They are almost the same as a cash loan store.
1 Updates & Rebuttals
Robert
Irvine,California,
You don't understand...
#2Consumer Comment
Mon, January 20, 2014
If you truly understood..you wouldn't have written this report.
You got a vehicle loan at 17 percent, you didn't mention anything else about the loan exept for the fact that almost half goes towards interest. But regardless of what you did or did not metion I can tell you that it 99.999999999999 percent chance that it is totally correct and nothing is wrong.
First of all look for what is known as an "amortization table". This is were you put in your loan terms and it will give you a breakdown month by month how much goes to interest and how much goes to principal. Of course this is with one "assumption" that your payments are paid on-time. As once you are late, you need to then account for additional interest or fees that are charged.
What you will fiind with this is that since your loan is a set amount every month, in the beginning of the loan(and could be for as much as 1/2 to 3/4 of the loan) you are paying a signifcant amount of the payment toward interest. But when you get near the end of the loan it switches. So for example, if your payment is $300/month you could be paying $250 or so in Interest near the beginning. But near the end it could be $250 in principal.
If you want to pay down your loan faster then they are 100% correct..you need to make additional payments.
Oh and by the way, this is how just about EVERY car loan works.
