Consumer complaint received 2020-09-23
Company: American Credit Acceptance, LLC
State: TX
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
During XX/XX/XXXX I bought a vehicle with XXXX in Illinois, in which I was proposed a contract agreed by both parties. The contract indicated the total amount of interest and principal that I would be paying for a period of 72 months, not 75 months. The contract stipulated that the first payment was due on XX/XX/XXXX and that I have an additional 10 days of grace period. Later on, change to the day 15 because I lost my job and have difficult making the payments. When the contract was signed, they told me that I have to pay {$450.00} for each month for the next six years, until XX/XX/XXXX. They calculated and presented to me in their computer the amortization table of the Principal and Interest amounts to be paid for each month, and if I paid late, I will get only a late fee charge of 5 % or {$22.00} for each {$450.00} not paid. Also, that I will be paying at the end of the six years a total of {$15000.00} at an annual rate of 24.65 %, not more than that because they calculated in advance all the interest to be paid for those 72 months. The total amount financed, or Principal was {$16000.00} and the finance charge or Interest was {$15000.00}. So, if you sum {$16000.00} with {$15000.00}, I will be paying only, not more, at the end of the six years or 72 months, a total of {$32000.00}. For each payment made, they must apply a percentage to Interest and Principal. Not all of it to Interest and nothing to Principal. The loan was financed by American Credit Acceptance and they must comply with the contract signed, but they did not. They violated the contract from the beginning for their own benefit. They should not be licensed by the government to do business because they always take advantage of their customers in different ways. They are using a method of awarding the monthly interest charge that is not stipulated in the contract that I signed with XXXX. They applied the first five payments to interest only and nothing to principal, and eventually they did the same with three other additional payments. There is no harmony in the allocation of the portion that goes to the interest and of what goes to the principal. It is a general knowledge, that for each monthly payment, they must distribute with a harmony between the principal and interest month by month. The process of allocation should have only a single break-even point, not multiples, between the interest and the principal. After passing that equilibrium point, the allocated portion to the principal must be greater than the interest and in this way the contract can be fulfilled at the end of the period of 72 months. But, through their system, they intentionally provoke a remnant of the debt at the end of the 72-month period that was in the original contract. When they applied all of it to interest and nothing to principal. In my case, I did all the 72 payments, not 75, and allegedly I still owe them. Sometimes making double payments and more than one monthly in order to accomplish the goal faster. I presented evidence that you will see that the supposedly amount owe was steal at the beginning when they wrongly applied it all of it to the interest and nothing to principal. Also, with their system they forced me to make several payments in a single month in order to lower the interest, if I dont do it they will charge me higher interest and at the end I will still owe them a lot. Even though I paid a year in advance they still charging interest. It is like paying a single month and they still charging interest for that month that its have been paid. There is no closing in the interest process for each month, when they are supposed to apply the amount of principal and interest already stated at the contract for each month and thats it. Also, with their system they never honor me the ten days of grace period. Because they also charge interest during the grace period. Its like paying double or triple interest for a month that XXXX XXXX already computed. 
They should apply each month the stipulated amount of interest already taken when I purchased the car, but they never give me a billing statement because they never did it. Even though, in their website they said that they can provide it. But as evidence, you will see that always is unavailable. Although I paid sometimes late because I was unemployed, at the end of the process there will always be only 72 payments, not 75. You can not invent additional payments because those allegedly owe months have already been paid. If they count the total payments, they will see it. To achieve this, several double payments were made, along more than one in a single month. You can imagine the amount of money they can steal from their clients if they have thousands of customers with the same problem as mine and out of ignorance, they paid it. 
They refuse to help me and reconcile my account since supposedly the entire adjudication process does it automatically once the person pays. I proved that their system is not correct when they allocated the payments. Please help me and protect me so they can cancel the allegedly amount owe with the {$990.00} that I proved that I paid more without a reason, plus the payment fee of {$460.00} ( {$6.00} each  payment ) that never deduct the principal. The car has been paid in full today XX/XX/XXXX and I am afraid these people still, however saying that I still owe them. 

After that, they should give me the XXXX XXXX with a letter that the loan has been paid in full. Help me resolve this situation as soon as possible as if you do not act urgently, they may add more interest to the allegedly amount owe. The file that I attached with this complaint need to be uncompressed. 

If you have any questions you can contact me at XXXX XXXX XXXX XXXX or email me XXXX. A consumer who needs help, XXXX XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation