We bought a Chevrolet Cavalier from a local car dealer. The initial loan amount was $ 11,264 with an interest rate of 5.99% and monthly payments of $ 187.15 for 72 months.
The first payment showed $ 38.99 for interest and $ 148.16 principal. One month later the interest was $ 51.29 and $ 135.86 principal. Another month later $ 56.08 interest and $ 131.07 principal.
In January 04 we made an extra payment of $ 1,000 and asked Franklin to apply it to the principal.instead, they took off $ 68.61 for interest and applied only $ 931.39 to the principal. The regular payment of $ 187.15 was divided into $ 11.23 for interest and $ 175.92 principal. That means, that we paid a total of $ 79.84 for interest in the month of January 04.
When trying to get an answer from Franklin they treated us in a very rude way and limited their explanation to "That is because of accrued interest, if you don't like it your only option is to refinance."
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