My name is Keara and I live in Middleville, MI. Recently, my husband and I purchased an automobile through Nationwide Auto in Hastings, MI through a gentleman by the name of Kevin.
During our negotiations, we had told Kevin that we only planned on spending $5000 and that we didn't want to pay his asking price for the van, which was told to us as $6840.40 at 22% interest.
We continued to tell him that our original plan was to finance a car for approx. $5000 and, upon receiving my husband's Christmas bonus from his job, we planned to pay off/down our loan with $4000. He said that we could still do that and that we shouldn't be intimidated by the amount of the loan because, "Michigan is a simple-interest state and, if we paid $4000 on the loan, we'd only be paying the interest toward the remaining 2840.40, which would take us less than a year to pay off."
He continued to assure us that, because it was a "simple-interest" loan, we would be benefitting by just getting the car now and we'd only have to worry about the remaining balance, which he assured us on our contract was only $2840.40.
I then asked him why it stated on the contract that the AMOUNT FINANCED showed as $6840.4 but the TOTAL ("amount paid after all payments are made on schedule - 30mos.) showed as $8940.40. He assured me that, "that's only the amount that we'd end up paying if we only made our regular payments over the entire loan period." and he continued to say, "If you're paying down the $4000, you won't owe that because you're cutting your loan term down and you're principal down because it's a simple-interest loan." On that note, we agreed to finance the car.
On December 26th, my husband received his bonus check and called Credit Acceptance Corp. To notify them that we would be sending them a check for $4000 and that we'd like that to go toward our principal of $6840.40. He continued by saying, "Now we're clear that this money is to go toward the principal of $6840.40, leaving us to only pay the interest on the remaining $2840.40 and the representative assured him of that in return. We then wrote the check out, entered a statement on the MEMO section reading "TO BE APPLIED TOWARD PRINCIPAL" along with a letter in the envelope which clearly stated our intentions for that money.
A couple of days later, our check cleared through our bank so my husband asked me to call Credit Acceptance to make sure that they applied it to the principal, as they had promised and as we had requested. When I called, the automated system stated that they received my $4000 and that my remaining balance was approx. $4953!
I then had my call forwarded to an operator and I expressed my concerns with her. I told her that there must be a mistake because my first payment for my car wasn't even due yet (not until Jan. 2nd) and that my husband was assured by their institution and by Nationwide that my money would go toward the balance of $6840.40.
The representative told me that my balance was not $6840.40 but instead, $8953, which included finance charges. I told her that my loan is a simple-interest loan and that my contract even reads as such and nowhere in the contract does it imply otherwise. She then told me that my loan was NOT a simple-interest loan and that she doesn't understand why I was told that. I then told her that her own company even assured me that I'd only be paying the interest on the remaining $2840.40 if I sent them the $4000 and she said that she was "sorry that we were misinformed but that there are no refunds and that the balance remains."
I then spoke with her supervisor, TANYA, who also stated that MI isn't a simple-interest state and that our loan was not simple interest, hence the reason the $4000 went toward the entire term of the loan instead of toward the "amount financed". I was furious and again asked for my money back because my first payment wasn't even due yet and she refused claiming that they don't give refunds.
We called Nationwide on many occasions throughout this dispute and even while on the phone with CAC and Nationwide continued to assure me that CAC is "absolutely wrong and that we are dealing with the wrong department." Telling us that "MI is, in fact, a simple-interest state" and that "we only handle simple-interest loans". They advised us to speak to someone in CAC's auditing dept. Or their Underwriters to get it cleared up.
I called TANYA back (CAC COLLECTIONS MNGR.) and asked to speak to their underwriters or to have them call me in regards to my account and she said that they don't call customers and won't call me. She was very rude and even laughed at me on occasions saying that I didn't know what I was talking about and that "they don't deal with customers like you". I asked her over 10 times to please have them call me and she continued to say no. She then told me that she would make sure that someone from her finance dept. Would contact NATIONWIDE to discuss the matter and to try to get it straightened out and said that they would call Nationwide the following day, which they never did.
I spoke to Nationwide again and Kevin and Cory (the Manager) again assured me that "MI IS a simple interest state and that Tanya doesn't know what she's talking about." They also went on to say that "Even if, hypothetically, it wasn't a simple-interest loan, my $4000 should still only go toward the amount of $6840.40 because my first payment wasn't even due yet and that I've only accrued less than 30 days of interest!"
Everything that Nationwide has told me seems to make sense and it's seems clear on my contract that what they say is true yet, CAC claims that THEY are correct and they keep referring me to my contract yet can't show me where it states that my $4000 is toward the entire amount of 30mos. Of financing. I told them that the RULE OF 78's is illegal in MI and they told me that they aren't acting under the RULE of 78's but rather the ACTUARIAL METHOD of financing. When I asked Tanya Morgenstern to explain the difference, she couldn't and could only continuously tell me that they weren't the same.
I spoke again to Kevin on Friday, Dec. 30th, and asked if he could give me a contact name at CAC for someone who could fix this problem and he told me he'd call me back on Monday. I spoke to him on Monday and he gave me the name of Angie Dillon and said that she was a Manager for the Collection / Finance Dept.
I called Angie on Monday and left her a message at noon and received no reply. I called Angie again on Tuesday, January 3rd, and said that I couldn't make my 1st car payment (due January 2nd) until this issue got resolved because, from a legal perspective, it would show that I agreed with the terms of the agreement, which I don't. I began explaining my complaint to her when she cut me off and said, "You've already spoken to my supervisor, Tanya, who explained everything to you. What else can I help you with?"
I told her that I either want my $4000 back or I want it to be put toward the $6840.40, as promised to me by her company and by Nationwide. She said that she couldn't do either and that I should contact an attorney if I wanted to take it further. I told her that I researched her company on the internet through the Better Business Bureau and that it is reported that in the last 36 mos., over 100 complaints have been made and 45 of them were contract complaints. She laughed and told me to contact a lawyer.
At this point, I've taken 3 years to improve me and my husband's credit so that we could purchase the home we live in now and we've worked very hard to get to this point. We've made NO LATE PAYMENTS in those 3 years and I can't afford to have that ruined because this company is using stall tactics. I am requesting your assistance in this matter because it's clear that this company is taking advantage of many, many clients and I feel that it's imperative that immediate action be taken. I'm sure that you will agree that, in the economic state that we're currently in, this type of fraudulent activity cannot be accepted.
I feel that I have contributed and continue to contribute to society and my community by working as the Director for Kids Hope USA through Hastings, MI.in addition, my husband and I volunteer as a counselors through the Support Team at TVC church, Bridge Builders, Children's Ministry and various other outreach ministries. I also donated 2 car for the 2nd year in a row to Mel Trotter Ministries along with many, many other donations to various organizations throughout MI.
I've been an upstanding citizen and an asset to my community for quite some time now and I don't deserve the mistreatment that is being handed to me. I care about MI and my community and I find it appauling that, in a time of economic hardship, innocent people are being taken advantage of. I am confident that you will support me in my efforts to resolve this issue for myself and for others in our community.
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