We purchased a 1996 Mazda from Universal Mazda in San Antonio and because of the salesman's lack of knowledge we have 3 contracts because they screwed up. Anyway we have had the carfor 6 years now and our loan is a 7 year loan.
When trying to trade our car in we found out that our payoff is still about $10,000 which with monthly payments of 427.00 it will take another several years to pay off.
When we inquired about why our payoff was so much they told us that we have a simple interest loan and that for every day our payment was late then we accrued so much interest.
I have argued with them and told them that that is compounded interest not simple interest. That simple interest is how they figure what your monthly payments were to be. And looking at our contract nowhere on it does it even address anything about late fees. We have a loan with Ford Motor Credit and it is also a simple interest loan and we pay a late fee. I asked them if that was the case then when we were late why wasn;t I told about any interest accruel so that I could have sent it in with my payment. I did not get an answer.
I have written a letter to them requesting an explanation and have not gotten any response. They did send me the copy of my contract which is exactley what I have and it does not say anything about any late fees or interest to be added if the payment is late.
I am not illiterit or stupid and can read very well and I know what simple interest is and what they are doing is compounded interest which is illegal now.
Regarding the 3 contracts when we traded our old car in for this one they made a mistake on our payoff and did not have me sign the form stating that if the payoff is not what they figured then the contract would be negated. So they had to refigure the interest and then at the end I recieved a letter from UAC stating that they had still made a mistake. Please let me know how I can handle this interest situation.
Caarol
Jourdanton, Texas
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