Late fees on Auto Loan

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Latest post 03-06-2009 9:37 PM by Bernie2. 6 replies.
  • 02-25-2009 10:15 PM

    • Bernie2
      Consumer
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    • Joined on 07-13-2006
    • Posts 9

    Question [=?] Late fees on Auto Loan

    In 2005 I traded in my husband's car. Got a new car with better milage in Sept 2005. Since I just got injured at work in June 2005, they requested co-signer. My Mother signed with me. All previous cars have been paid in full.
    Somehow while dealing with WC, I thought I had made the Dec. 2005 payment, I did not. They notified me in April 2008. The next month I paid the missed payment with interest. However, the Federal Credit Union demanded over $1,000.00 in late fees. They cxl'd my mothers credit card and threatened to repo the car. I owe $5000.00 left on car not including late charges from 2005. They refuse to reinstate Mom's credit card and are adding $30.00 charge each and every month including this current month. I tried to reason with the Credit Union & they got very nasty. Has anyone heard of a late charge being back dated 3 years? Do I have any recourse. Thank You,Bernie
  • 03-02-2009 6:01 AM In reply to

    • LendrJim
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    • Posts 38

    Feedback [*=*] Re: Late fees on Auto Loan

    Bernie,

    If you fell a payment behind in Dec 2005 and have never made it up then you are likely due all of the late charges.  Has the Credit Union been sending you late notices all along?  Have they been calling to collect?  You have literally been running 30 days late every month for 3 years?  Your post here makes it sound like you just found out about this.  If you (or your co-signing mother) have known since 2005 then there is little question that you owe the money.  If they never made any notification you may have some case against.

    Good luck with that.

    LendrJim

    Consumer Finance Professional

    & Some Guy on the Internet

  • 03-04-2009 10:30 PM In reply to

    • Bernie2
      Consumer
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    • Joined on 07-13-2006
    • Posts 9

    Re: Late fees on Auto Loan

    I had no idea I had missed a payment in Dec 05 until they discovered the error 4/08. I forgot and they never noticed.  As soon as notified, I went to the credit union and arranged to made the payment up along with May's payment in May. Neither myself or my mom knew any sooner.
    It took them a while to find it again when I showed up. My main concern is my mother's only credit card is still blocked, they said they would take 0ff the block as soon as back payment was made then changed thier minds.  I now discover I am recieving money next month or so.  I want to pay off the car ($5,000.). I really do not want to pay the now $1170
    in late fees only. As of May 2008 until now they  have all payments current including interest.
    I feel strongly that waiting 3 years to notify me is very underhanded.
    Thanks Bernie

  • 03-04-2009 11:26 PM In reply to

    • Bernie2
      Consumer
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    • Joined on 07-13-2006
    • Posts 9

    Re: Late fees on Auto Loan

    Thanks for the quick feedback.  When I showed up at the CU, I first spoke with a loan rep. At first she was pleasant and helpful. I brought the letter I had just recieved. She said she could fix this problem with the credit card block & repo threat. After 20mins she finally got someone in collections via p/c. She spoke to them and asked me when I could make up the missed payment. Told her I would make 2 payments the next month. She shook my hand and added now don't forget those late charges. I was taken back and told her I didn't have an extra grand to give her and since neither one of us caught the error I thought the late charges were extreme. The loan officer became enraged. Said I had to prove I did not recieve prior notification.  They had nothing in my loan file. I requested to speak with the bank manager. She went into his office first then came out and ushered me & my mother in. Before I said
    a word, the manager put out his hand, How can I help you, I'll do what ever I can for you but you will pay every cent of the late charges. I shook his hand turned around and left his office and the building. I wrote to the agency that oversees all Federal Credit Unions in NYS. They just sent me a copy of the letter that they sent to the manager, It said, reach me and my mom and handle it.
     At present the credit card remains on hold, but the car has not yet been reposessed. What a nightmare!   Thanks Bernie

  • 03-06-2009 6:46 AM In reply to

    • LendrJim
      Consumer
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    • Joined on 02-07-2009
    • VA
    • Posts 38

    Re: Late fees on Auto Loan

    This story, if it is what you say, is appalling.  If your credit union charged you a late charge on a car loan every month for 2 1/2 yrs and never sent notices, or made phone calls, it is inconceivable that they wont waive them.  Although they may actually have a contractual right to charge these fees, they are provided for in the contract, I have always taken the stance that I have to earn those fees.  I earn those fees by sending late notices and making collection calls.

    This credit union, and every other financial institution in the US tracks and works their delinquent accounts in some fashion.  Some are more aggressive and proactive than others but if they did nothing then the fault is theirs in anyones sense of fair play and customer service.

    This story is very uncommon though.  Are you sure that your mom didnt get notices every month and ignored them or something?  Do you get a monthly statement for the auto loan or did you have a payment book?  Does the credit union have a comprehensive monthly statement where all accounts are listed; checking, savings, credit card, loans?

    LendrJim

    Consumer Finance Professional

    & Some Guy on the Internet

  • 03-06-2009 9:37 PM In reply to

    • Bernie2
      Consumer
    • Not Ranked
    • Joined on 07-13-2006
    • Posts 9

    Re: Late fees on Auto Loan

    My Mom swears she did not get any letters for the CU. She has a real steadfast routine. If something comes in for one of us girls. She will not stop calling us until it is picked up. 
    What got me was the CU did not have any paperwork either. Looks as if the error was caught in a general audit.  I guess I will truely find out what is going on when I pay off the car next month. But i can honestly say no matter what I will never go back there. Bernie

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