- Report: #132753
Complaint Review: HFC AUTO FINANCE - CITY OF INDUSTRY California
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HFC AUTO FINANCE
HSBC PO BOX 60115 CITY OF INDUSTRY, 91716-0115 California, U.S.A.
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HFC AUTO FINANCE ripoff CITY OF INDUSTRY California
I financed a car 18 months ago through these people on a 5 year contract. The car in question was involved in a "hit and run" accident in Jan of this year and has been declared a total loss..
I have the Jan statement showing an amount of 8123.33$ as the "ACCOUNT BALANCE" but with the comment that this IS NOT the payoff amount. Now since that statement, i found out today that an additional 2 payments totalling about 500$ had been credited to the account. While with the "insurance adjuster" we called for a payoff and were given the amount of 7807.41$, which is HIGHER then the 8123.33 less the two payments credited. The insurance company is covering 6218.71$, which i would have "thought" would have been close to a "payoff" amount since the account is being "paid" 3 and 1/2 years EARLY, but i find i still will owe almost 1600$.. they did however say that they MAY be willing to finance another car and ADD this amount to the "new contract".
WHAT A SCAM!!! They get you with a high interest rate ( in my case, over 16% ) to start with, then try and offer to "help" by adding a remaining balance to a "new" purchase contract. They'll get there 1600$, but it will be as a "regular payment" on the still existing loan over the next 7 months........in the mean time, i'll take the BUS
Bill
sun valley, Nevada
U.S.A.
I have the Jan statement showing an amount of 8123.33$ as the "ACCOUNT BALANCE" but with the comment that this IS NOT the payoff amount. Now since that statement, i found out today that an additional 2 payments totalling about 500$ had been credited to the account. While with the "insurance adjuster" we called for a payoff and were given the amount of 7807.41$, which is HIGHER then the 8123.33 less the two payments credited. The insurance company is covering 6218.71$, which i would have "thought" would have been close to a "payoff" amount since the account is being "paid" 3 and 1/2 years EARLY, but i find i still will owe almost 1600$.. they did however say that they MAY be willing to finance another car and ADD this amount to the "new contract".
WHAT A SCAM!!! They get you with a high interest rate ( in my case, over 16% ) to start with, then try and offer to "help" by adding a remaining balance to a "new" purchase contract. They'll get there 1600$, but it will be as a "regular payment" on the still existing loan over the next 7 months........in the mean time, i'll take the BUS
Bill
sun valley, Nevada
U.S.A.
1 Updates & Rebuttals
Bob
Quinlan,Texas,
U.S.A.
What about the interest rebate?
#2Consumer Suggestion
Fri, February 25, 2005
Bill, The amount you should only owe is the account balance minus the interest you would have paid to borrow their money if you paid out on time. When you pay early, you should get what is known as an interest rebate of the finance or interest charges from the time you are paying off the vehicle to the end of the note. This amount is subtracted from the current balance and that should be the payoff amount. Go see a CPA and they can figure out how much it should really be.
