I purchased a motorcycle from a local dealer in my township. I gave my old bike and three thousand dollars cash towards the purchase of a new bike that was for sale for the total price 7800.
I financed the rest via factory (yamaha factory) financing who utilized Household Bank, N.A. My original contract was that I will have a monthly payment of 62.00 and an APR of 8%.
However, from the very first bill my payment was never 62.00. When I called yamaha to ask about the payment and contract, they told me that the contract had nothing to do with them, that it was between myself and the dealership in spite of the fact that the dealership arranged the rate with them and obtained the financing.
I had several problems with the mototcycle I purchased, even just taking it off the lot there were problems... Even though I was told I will have a year warranty, trying to exercise that warranty was a joke and I had to pay out of my pocket to straighten out the mess I was sold.
My spouse was killed in an auto accident and most all my income was then gone. I had to file bankruptcy but I did not submit yamaha acct. I continued to pay my bill.
I did call and ask that they reposess the bike and was told that they will not reposess a bike that had more than 500 miles on it. I called several times and each time I was given a wholly different reason why they will not reposess the bike.
Then one day I noticed the initial limit on my account was decreased and my interest rate increased.
I called household bank to make inquiry and was told that because I filed bankruptcy they had a right to decrease my limit and increase my interest rate to penalize me for being in default with other creditors.
I was told that if I continue good payments I can call back in a few months and request things be put back to normal. I did call back several months later.
I was told that rates are not negotiable, that they are justified giving me a total interest rates over 30% and that I was wrong and that I can not speak to the credit dept that told me I may after a few months of good payments.
The office of the state comptroller that regulates Household Bank was called by me and they did tell me that it was illegal to give me an interest rate that high.
So i called householdbank and asked to lower my rate and told them what I learned from the comptroller. They claim that my interes rates are two seperate ones that has nothing to do with the other even tho both are from the same account under the same account number and stemming from the same purchases.
For example, I send them 95. Per month. When I started sending that amount was approx. 5 months ago and my balance at that time was 3350. My balance moved down only one hundred dollars since 5 months ago.
I want to point out that I surrendered my old motorcycle and 3000. Cash for a new bike that was selling for 7800. The next day, my old bike was sold for close to six thousand dollars. The yamaha Corp gave the new2 bike to the dealer for 5900. So everyone has made a nice sum off of me!
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