Insurance resource group
Charging interest in advance on installments

Health & Medicine

My insurance company has changed payment method from post dated cheques to internet auto withdrawal. Payment s can be made in eight consecutive payments starting on first day of coverage. O.K. So far? Now, they want to charge 2% interest on each installment and that works out to annula 24%Question: is it legal, and/or proper to charge interest on a service that is prepaid. I.E. The company has the money up front before the service has been delivered and wants to charge interest on the premium. I don't think so. Mortgages, Banks, Credit Card companies only charge interest on money already loaned in the event of late payment. Seems to me there is something of a rip-off here.


Company: Insurance resource group
Country: USA
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