Union Acceptance Corporation
Misleading Coupon Book / Outlandish Late Fees

I purchased a 1996 Ford Explorer in 2000. I financed the vehicle thru U.A.C. For five 6 years.

I received my coupon book and it read the following:

"On Time" Pay On Or Before (19th)
XXX. XX

"Late Payment" Pay On Or After (5th)
XXX. XX ($5.00 more than above amount)

I understood this as being a $5.00 late charge if paid by the 5th. The way my other bills lined up during some months with regard to my workpay, it sometimes was easier to pay by the 5th instaed of the 19th. I figured, what the hell, it's only five dollars.

Approximately three months ago, U.A.C. Sent me a statement for the first time and instructed me to no longer use the coupon book. It was then I noticed irregular allocation of payment towards interest and principle.in some cases, 85% of my payment was being allocated towards interest.

I contacted U.A.C. And they told me it was simple interest. I'm assuming that their CSR's must be reading a script because every other person I've heard explain this same problem with U.A.C. And whom has contacted them has received the exact, same, word for word response.

Nowhere, I mean nowhere on my contract is any charge of this type mentioned. I was never told about this from the dealership and I find U.A.C.'s coupon book to be very deceptive and misleading.

To date I've lost thousands and if I never was made aware of this what I call, illegal charge, it would take approx. 15 years to pay a 6 year loan.

James
Springfield, Maryland

Company: Union Acceptance Corporation
Country: USA
State: Indiana
City: Indianapolis
Address: PO BOX 1083
Phone: 8002842324

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