I purchased my car 1/9/08 for $12,149.44 with a 72 mo. Simple interest loan? There were a few times I was late or missed a payment but, eventho... Year to date I have paid $9,464.54 in interest and $3,434.80 applied toward the principal.
After months of not understanding why my principal wasnt going down I did some research via internet. I found that my loan was a Rule 78 loan where they collect the majority of the interest within the first 2-3 years. Also, 1992 the Federal GOvernment pass HR 1054 which only allows this type of loan on 61 month loans it cannot be applied to a 72 mo. Loan of which I have.
I called Cap One and spoke to a Cassy and brought this up to her and after putting me on hold... Came back and said they still carried these types of loans she really didn't know what to tell me other than to contact an attorney.
I was informed by another source that back when HR 1054 was passed General Motors almost went bankrupt refunding their clients interest they had paid in full.
If anyone knows of an attorney I may contact... I anxiously await your reply. I am not going to let this go.
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