Consumer complaint received 2022-06-13
Company: General Motors Financial Company, Inc.
State: MN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
I called GM financial XX/XX/XXXX spoke to XXXX about a misapplied payment. 

I always make my payment for the month its due for and then make a 2nd payment afterwards. This allows me to see my principal to decrease faster. GM financial however CONSTANTLY misapplies the payment towards prepaid interest and the next payment due. EVERY MONTH I've had to call GM since ( XX/XX/XXXX ) i got the car loan to ask that they correct the misapplied payment. EVERY MONTH i ask for a payment history to reflect how the payment was applied to my outstanding UPB ( unpaid principal balance ) as a mortgage underwriter for a big bank i know the benefit to paying more each month. 

Paying your loan down faster decreases the amount of interest you pay over the long haul. I believe GM financial is directly causing me and others harm by misapplying the payment. Furthermore by the time they fix the misapplication they've still caused harm by not applying it on the day they receive it towards the interest. 

SO in this most recent example. On XX/XX/XXXX i paid the XX/XX/XXXX payment that was due XX/XX/XXXX. Then on XX/XX/XXXX i paid an extra {$50.00}. GM Financial applied that extra {$50.00} on XX/XX/XXXX towards the XX/XX/XXXX payment that was NOT YET DUE. 

So i called XXXX and was told it take 1-2 biz days for them to correct the misapplied payment. I was also promised a payment history to show me how the payment was applied. But if the payment was corrected on XXXX or XXXX i still paid extra interest from XXXX and depending on when it was corrected thus still charging more interest on the UPB then i should have. 

This is where they are committing financial harm to their customers. Its like your penalized for paying more and/or its like we ( GM Customers ) are not allowed to make an extra payment each month. 

Like your DISENCOURAGED on paying your car payment down more each month. I want a payment history every month. I would like to see the GM financial website UPDATED so customers like myself can see where our funds are going, see how the UPB decrease each month. Every other financial provider has this technology available. 

My last car loans with XXXX XXXX and XXXX XXXX ( 10 + years ago ) already had this technology in place. Each time i make a payment i should be able to see what goes to the balance of the loan ( UPB ) and the interest each and every month. As a GM Customer i should be able to accurately track where my funds are applied. No different then a personal loan, mortgage loan or even a car loan. 

Please update your website to allow a more customer friendly experience, This will create trust with me and others. It will allow me to also free up my time and your customer service agent like XXXX from taking long unnecessary calls that could be easily AVOIDED. I spend at least 30 mins each time having to call GM after i make my principal payment ( Again after the payment is due for the respective month ) This is now the 4th CFPB complaint I've filed. Each time i get a canned letter saying You took out a loan, you owe us 75  payments at X amount. You signed this contract on x date. Blah, blah, blah. Here 's a payoff statement thru x date. you're free to leave we don't care we got you strangled by 8.1 % interest rate. 

UMMM YA i know it GM Financial. I'm not an XXXX. I just want to pay off my loan sooner. PLEASE FIX YOUR PAYMENT PORTAL. PLEASE STOP MISAPPLYING MY PRINCIPAL PAYMENTS. I want to see the fruit of my labor come to for wishing. i want to strengthen my equity position with my car so i can refinance AWAY from you and/or trade this car in and finance thru another bank

Company response to consumer: Closed with explanation