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Horrendous Capital One late fees? Need help

The last post in this topic was posted 3452 days ago. 

 

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I'm trying to pay off my capital one auto loan. However, after checking the "pay off" amount, it showed to be about $1K MORE than the actual balance owed. So I called and spoke to a manager at their call center. And his response was that I've been behind on my payment for 52 weeks, and that the additional amount was tallied by late fees accrued for the entire period, and that I agreed to pay these fees when I signed the contract.... yada yada yada.

 

This is outrageous and clearly predatory. I just want to pay off my loan without having to pay all these ridiculous fees, and was wondering if anyone here can share any tactics or ways that I can use to go around this. You can pm me if you do not wish to reveal it publicly.

 

I am furious.... :angry:

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The original RISA you signed most likely included a stipulation for the imposition of late fees. If you have made late payments, those late fees keep earning the bank extra interest, If you don't pay the late fee as you make the payment when late, then the late fee just keeps getting added to the end of the loan and earning them interest.

 

Good luck.

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The original RISA you signed most likely included a stipulation for the imposition of late fees. If you have made late payments, those late fees keep earning the bank extra interest, If you don't pay the late fee as you make the payment when late, then the late fee just keeps getting added to the end of the loan and earning them interest.

 

Good luck.

 

I'm aware of that. What I want to know is are there any ways I can go around from paying these fees since I'm going to pay off my balance.

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If you want to get an unemcumbered title, then you would have to pay whatever the leinholder says is the loan payoff amount. I don't know of any way to avoid legitimate fees structured in the loan document.

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If it's in the contract and the law allows it (and a big company like Capital One usually checks the law first), then you're going to have to pay it. Whenever you are at all behind on payments, the car can be repossessed. So they could add injury to insult by repo'ing your nearly paid off car likely with positive equity.

 

One thing they are not allowed to do under federal law is "pyramid" late fees. For example consider a loan with monthly payments due on the first of every month. There was a payment due Jan 1 but no money was received until Jan 30, thus the January payment was late, and ultimately skipped (with no payment received since the on-time December one, two payments are actually due before Feb. 1). They have to consider that one payment received as an on-time February payment. They can't say that was the January payment and thus marigolds a fee for being late in February too. (They will report "30 days late" on your credit report every month afterward until you catch up, but that is a different issue than a late fee).

 

But the late fee and unpaid principal and interest from January can compound and add up to a sum equal two or more payments due at the end of the loan. Doing everything by the book usually generates plenty of money. Only in a few cases (not saying yours isn't one of them) is actual cheating involved.

Edited by mk_378

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What happened was I've been making payments each month, but I'm still a payment behind for the past 7 months or so. And as a result, I've been charged a late fee that has compounded this whole time. And I've already asked one of their call center manager to eliminate the fees, without luck.

 

I'm thinking about calling again and speak to another rep right before paying it off, or perhaps ask for a settlement. Not sure if this will work though.

 

I'm wondering if there are any negotiation tactics, such as paying off my balance first; at which point I will technically paid off my debt of the car, which will only leave the fees left on the table before they send me the title. Then I'll keep bugging them to drop them. Not sure if that will work.

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I was wrong about the late fees. They can charge a late fee every month after you miss a payment and never catch up. This is from Regulation AA:

 

Prohibited Practices

Pyramiding of Late Charges

Pyramiding is an accounting method that results in

the assessment of multiple delinquency charges as

a consequence of a single delinquent payment for

the current month. For example, when a borrower’s

payment is received late, the lender deducts a late

charge directly from the payment received, which

then results in an insufficient payment. Although the

next payment may be received on time, because

the first payment was considered insufficient, a late

charge is again applied. This continues until either

the borrower pays the late charge separately or the

loan matures. The examiner should not confuse this

situation with one in which a payment is missed and

never made up, triggering late charges each month

until the entire payment is made and the account is

brought entirely up to date or is paid in full.

 

So the first thing to do if you have the money would be to make at least one extra payment to catch up.

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...They have to consider that one payment received as an on-time February payment. They can't say that was the January payment and thus marigolds a fee for being late in February too. (They will report "30 days late" on your credit report every month afterward until you catch up, but that is a different issue than a ...

 

Hi, not to thread jack but what you described above happened to me, except with a cc (BOFA). I have asked for a re-aging so that we can report the month I missed as late FEB 2010, but the subsequent (I like that word) months as paid on time, but they said no.

 

I figured it as matter of goodwill but BOA (although pretty much admitting that they screwed with me and my finances) will not budge on lifting this. Did I ask for the right thing? Is there anything else I can do? I figured not but hey, I gotta try. lol

 

 

Oh, and to the OP, the cap one thing happened to me as well. I did not have thousands in fees but it was a pretty high number (when I sold my car) Fortunately, I sold it to a car auto reseller and had to come out of pocked just 40 dollars or so but yeah, having those fees tacked on at the end of the loan sucked. This is why I tried to pay them when I caught up my payment but, unfortunately, sometimes I couldn't.

 

 

 

 

Edited by akelatgml

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Hi, not to thread jack but what you described above happened to me, except with a cc (BOFA). I have asked for a re-aging so that we can report the month I missed as late FEB 2010, but the subsequent (I like that word) months as paid on time, but they said no.

 

I figured it as matter of goodwill but BOA (although pretty much admitting that they screwed with me and my finances) will not budge on lifting this. Did I ask for the right thing? Is there anything else I can do? I figured not but hey, I gotta try. lol

 

 

Please ask this question in the main credit forum. You will get a lot more views and responses regarding BOA there.

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