Wells Fargo and question in general
Date: Fri, 04/04/2008 - 13:45
Am I able to turn the tables and take them to court to get the interest charges removed as I know they certainly won't agree. I want to pay what I originally owe but it seems like I am getting nowhere as the amount hardly goes down.
Can you clarify a little bit for us? What type of debt are you
Can you clarify a little bit for us? What type of debt are you paying on?
If they have been charging you in excess of the agreement or con
If they have been charging you in excess of the agreement or contrary to state laws, you certainly do have a case against them.
However, if this is a simple interest contract, the "extra interest" you claim may be entirely legal. (You can tell if your contract is simple interest because it will use language like "interest will be calculated from time to time unpaid" and/or "interest will be calculated on the basis of a 365-day year and charged for the actual number of days elapsed.") ((This is opposed to a precomputed/78ths method))
That is because simple interest loans accumulate interest in between payments based on when/how much you pay in relation to the principal. Any time you make a payment, it pays for all accrued interest first before any part of it touches the principal. (The TILA disclosure/payment schedule ammortizes it perfectly so that if payments are made exactly as scheduled you won't owe any extra ... but the lender cannot predict future delinquencies at the time they generate a contract ... they can only base the "total interest" calculation on their assumption that payments will be made when due.)
Late/missed/partial payments will definitely have an impact on the overall interest you pay over the course of the loan. That is because the interest continues to accumulate to be paid from subsequent payments, leaving a lesser portion of your payment applied to the principal than would be if the payment was made on time.
Even if a payment is one day late, you will nonetheless owe 1 day of extra interest that will come out of your next payment. If you make every payment 30 days late, you may end up owing a couple hundred bucks by the end.
I don't know very much about your situation ... you say you are making monthly payments ... but did the account ever get behind?
