Consumer complaint received 2024-05-25
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: FIFTH THIRD FINANCIAL CORPORATION (MN)

Hello! I have a complaint that pertains to both a car dealer and the lender they use. Quick summary and then some thoughts : Summary : On XXXX XXXXXX/XX/XXXX, I visited XXXX XXXX XXXX XXXX XXXX, at XXXX XXXX XXXX. XXXX XXXX, XXXX XXXX XXXX, MN, XXXX. I was there to discuss a car I was interested in ( a XXXX XXXX XXXX XXXX XXXX XXXX. 

After some discussion, we agreed on a price, and I indicated that I was able to pay cash ( via bank transfer ), but was encouraged to instead take out a loan because I could immediately pay it off without incurring any fees or interest. I pressed this point at every stage- there are no fees, right? If I pay the loan off immediately, I wont pay any interest, right? 

At every stage, I was assured and reassured by the finance team that there would be no fees. I was specifically told that when I received my first statement, there would be a large number- the amount I borrowed for the vehicle ( {$33000.00} ) - and if I immediately paid that amount, there would be no interest or fees at all and the account would be closed. We received lending paperwork, but not the information needed to log into the loan account and pay it off. 

So, as instructed, I waited for the first statement, receiving it from Fifth Third N.A. on XX/XX/XXXX. That same day ( immediately upon receipt ), I created an account with Fifth Third, linked by XXXX  bank account, and transferred the entire amount owed ( {$33000.00} ). During that process ( which I believe I completed through their mobile website ), I was never informed that additional interest was ALREADY owed. The only amount shown was apparently the principal of the loan. Not expecting any interest, I didnt think twice. 

Today, I received a payoff quote from Fifth Third, indicating I owe {$100.00} to pay off the car ( {$100.00} in Principal and {$0.00} in Interest Due ). I immediately contacted Fifth Third to find out why they hadnt closed the loan after my initial payment, and to complain that I didnt believe they had appropriately provided the information I needed to pay off the loan without further interest. The chat agents initial response was to say repeatedly that interest had been applied, and interest is a legitimate fee (? ). 

My complaint was escalated, and I spoke with a wonderful customer service agent XXXX XXXX, who was genuinely really great ), who gave me a bit more information. Of the {$100.00} I owed, about {$100.00} was interest accrued before my initial ( and presumed final ) payment. XXXX cents was interest accrued on that {$100.00} since my payment. I pointed out that I had paid what appeared to be the full amount the moment I received the bill, and she told me that their mobile systems dont show the interest owed (! ) and its a gap in their systems that theyre working to fix. 

I told her I could understand the {$100.00}, as that amount had been accrued when I paid ( though of course, I do think it should be possible to pay it off immediately ). But I pointed out that the failure to provide an accurate payoff amount was Fifth Thirds mistake, and I shouldnt be responsible for interest on the shortfall. She essentially told me there was nothing she could do, but she understood it wasnt fair. I told her I wasnt going to argue about XXXX cents ( and would send the payment by check, as requested ), and we wished each other well. Im about to drop a check in the mail for {$100.00} ( the loan accrues XXXX cents per day, and we cant know how long the mail will take. 


Thoughts : Obviously the XXXX dealership lied about whether Id accrue interest before I paid the loan off. I cant prove that, and I can eat the {$100.00}, but I do think they deserve a strong reminder about the importance of truth in lending. 

The Fifth Third issues are more surprising to me. It doesnt appear theres any possible way I could have avoided the initial {$100.00} in interest, as I wasnt contacted by the lender electronically ( allowing me to pay immediately ), and I made an electronic payment immediately upon receiving the information. Theyre literally collecting interest just because the system they use to deliver the loan information - the XXXX XXXX is slow. 

Additionally, they acknowledge that their full experience is not being delivered by their mobile platform - and THAT THEY ARE AWARE its making it impossible for people to fully pay off their loan without incurring another round of interest. In addition, this failure of their own systems had accrued XXXX cents of interest, with XXXX cents being added per day. In my case, this is a small amount of money and I can afford to pay it. But, having worked for over a decade in financial services, I was surprised by the blatant failure to accommodate a well meaning customer making a good-faith effort to pay a debt. 

Feel free to call or email if youd like more info. Thanks!