I just found out today that the extra principal money I sent to Citifinancial using their "Speed Pay" system was not applied to my account. I paid $300 extra on 12/29/03, 23.66 extra on 1/30/04, and $123.66 extra on 2/27/04. They put it in a "holding fund" and waited for me to notice principal payments were not being applied to my account.
I spoke with a girl named Michelle at Citifinancial Customer Service today. She asked me what I wanted to do with the extra money I paid. Duh? I do not have an escrow account or PMI, so for me it is a no-brainer.
She said she would apply it to my principal balance today and that it would take about 3 days. I told her that I wanted the money to be applied as of the day they received it, 12/29/03, 1/30/04, and 2/27/04, as this affected the amount of interest I pay on the loan.
She told me in an arrogant tone, "Your principal payments have nothing to do with your interest!" I replied, "Yes it does, as I have been paying interest on a higher principal balance since my extra payments were not credited to my account. Therefore, I have paid more interest than I should have." She disagreed but finally agreed to send me a history of my loan without charging me the $10 fee.
This is a scam! I plan on writing to Citifinancial Mortgage too!
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