taken by interest

[ladydi Junior Member Find all posts View Profile Close ladydi]

I purchased my timeshare in January. They told me I had until June 2006 before my first payment was due with "their" finance company. I paid it off June 2, in full. I called to make sure my balance was zero and it was not. They lady on the phone told me that I have been charged interest since the day i signed my contract. I remember DISTINCTIVELY that they told me I had until june 1 to fine somewhere else to finance if I didn't like their finance company. She told me that she was just the finance company that I would have to call Hacienda Del Mar and speak with someone there. I look at my contract and I see my first payment is due June 1. No where do I see that its been charging me interest since Janaury. Of course they word things that no human can understand. Just wondering if anyone else has had this problem.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Not in TS. But in some store credit card, they allow you to pay nothing until a later day. On that day, if you still have a balance, all the interest will be add on back. It usually is written in very very small sentence. If you pay befor that day, no interest is added.

Check your contract or good faith estimate (Loan documents), I guess it has simliar clause.

Jya-Ning

[teepeeca Junior Member Find all posts View Profile Close teepeeca]

If your payment was due on the first of June, and you didn't pay it off by that time, I believe that they have every right to charge you the "back" interest.

You said that you "paid it off' on the 2nd of June---that makes you "late" with the payment.

You might try to "plead your case" with the seller, but I don't think you will get anywhere with them.

Tony

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

It never hurts to argue a point in this arena. You have nothing more to lose and perhaps a bit of money to save.

[ladydi Junior Member Find all posts View Profile Close ladydi]

taken by interest payment

I was only one day late with the payment so i should have only been charge for one days interest not the whole way back until january. same as a car payment, they will charge you interest on every payment, not take you back until you signed for the loan. i decided to pay it off. i didn't have to. i could have made 60 payments thru their finance company. so they are telling me that for one days interest was 158.97 and growing everyday until paid off. now they are charging me interest on the interest. it was paid off in full june 2.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Read your agreement again. Often times it does say if paid by June 1, 2006 no interest. But elsewhere you will find that the defferred interest was accruing since the beginning and if you pay after June 1 - even one day - that defferred interest comes due. And as long as that balance remains on the account it too is ringing up interest. You can ask to get an adjustment but they likely were within their rights to charge it based on what you agreed to.

[I-DE-HO Senior Member Find all posts View Profile Close I-DE-HO]

I was only one day late with the payment so i should have only been charge for one days interest not the whole way back until january. same as a car payment, they will charge you interest on every payment, not take you back until you signed for the loan. i decided to pay it off. i didn't have to. i could have made 60 payments thru their finance company. so they are telling me that for one days interest was 158.97 and growing everyday until paid off. now they are charging me interest on the interest. it was paid off in full june 2.

Wrong. Late is late. I've had one of these contracts. One day late and you owe the full interest back to day one. It is not like a standard auto contract. Post the wording in the contract here if you wish.

[djyamyam Senior Member Find all posts View Profile Close djyamyam]

I was only one day late with the payment so i should have only been charge for one days interest not the whole way back until january.

This type of contract is the exact same as the furniture or electronics purchase of "don't pay for 6 months" advertisements. Interest accrues from the 1st day and only gets charged if the full payment is not paid by the specified date. People like yourself forget to pay and get nailed for the whole shebang! That's how they make their money. It doesn't matter if you are one day or 100 days late, you get dinged for the full amount of the interest from purchase date.