Consumer complaint received 2019-02-01
Company: Consumer Portfolio Services, Inc.
State: CA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
Payment recording practices do not correctly allocate funds and payments applied. Balance is at least $ 6k higher than what it should be if loan was correctly amortized, even at 18.45 % interest. 

XXXX : CPS is NOT correctly applying the payments to my account and is currently reflecting a balance nearly double that of a correctly amortized loan under identical terms. 

Request : Looking to have the account reconciled and payments applied accordingly. 

Other complaints : https : XXXX Loan details : 1 ) Loan through CPS was granted on XX/XX/XXXX ( Loan # XXXX ) 2 ) Terms are 18.45 % interest over 72 months with original balance of {$27000.00}. Current balance is {$21000.00} with 40 payments made. 
3 ) Account is in good standing with one 30 day late payment over the last 52 months. 
4 ) Contract established was written to terminate on XX/XX/XXXX with a XXXX  balance. 
5 ) After recently reviewing my payment history on CPS '  website, maturity date now reflects XX/XX/XXXX. 
6 ) From the very first payment, 100 % of my payment, or the majority of the payment ( s ) thereof, have been applied to interest. To put this in perspective, I have made 39 payments at or above the minimum required and those payments were applied as follows : Payments submitted : {$24000.00} ( 39 payments averaging {$630.00} against minimum payment of {$620.00} ) Funds allocated to interest : {$19000.00} ( 78.75 % ) Funds allocated to principal : {$5100.00} ( 20.70 % ) 7 ) I  authorized five payments to be rolled to the end of the loan during a period of medical leave and XXXX  XXXX. CPS unilaterally extended the loan another 12 months.

8 ) Given the poor accounting and financial practices and considering the incorrect allocations of payments, this loan has no possibility of being paid off by the new contractual expiration of the loan of XX/XX/XXXX. 
10 ) I unsuccessfully attempted to contact CPS on XX/XX/XXXX. 
11 ) Successfully contacted CPS on XX/XX/XXXX and they committed to auditing my account. 
12 ) Filed complaint with XXXX  : https : XXXX 13 ) CPS responded stating that this is the correct way to amortize a simple interest loan. 
14 ) Based on the audit provided by CPS, it merely shows the payments that were made and " Interest carry over. '' 15 ) Loan was funded on XX/XX/XXXX. I attempted to make a payment in XX/XX/XXXX and was told I couldn't because of missing paperwork. When the loan paperwork arrived, I made a payment on XX/XX/XXXX, against a due date of XX/XX/XXXX. All funds were applied to interest and there was no grace period on the payment. This is the beginning of the late fee problems. 
16 ) On XX/XX/XXXX, the day following CPS ' response to my XXXX   complaint, I received a call from CPS threatening to repossess my vehicle and force immediate repayment of the five payments that were sent to the rear of the loan. This call was made to my employer 's number of record, not my personal contact information and was the first and only call of this nature. Given that I am current and have never heard from CPS prior to the complaint I initiated, I believe this was a retaliatory response. 
17 ) Not only am I being charged a late fee without a grace period, I am paying what appears to be compound interest. These practices do not appear to be in accordance with GAP. 
18 ) 78.75 % of my payments have been applied to INTEREST.

Company response to consumer: Closed with monetary relief