Consumer complaint received 2024-03-21 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Title loan
Issue: Charged fees or interest you didn't expect — 
Company: BMO BANK NATIONAL ASSOCIATION
State: PA

Complaint narrative:
To whom this may Concern, My husband and I bought our RV XX/XX/XXXX from XXXX XXXX. The RV loan was financed through BMO, first payment due XXXX of XXXX. The regular monthly payment is {$840.00}, we sent a check of {$900.00}. I thought the extra XXXX would be automatically applied to my principal along with the principal amount from my regular payment. BMO applied the whole {$900.00} as interest only. I was told that it was all due as interest because the loan had been open for more than 31 days without a payment, but I paid the loan by the due date. 
The next monthly payment we paid {$1000.00}, a total of {$150.00} above our regular payment. BMO applied {$160.00} to principal and {$830.00} to interest, again trying to figure out why my regular monthly payment principal is only {$10.00}. BMO informed me they were charging me back interest owed, but I have never been late with a payment. 
The following month we paid {$1500.00}, a total of {$680.00} above our regular payment. They applied {$970.00} to the principal and {$550.00} to interest, this made more sense to me. 
The next few months when we paid only principal payments we were charged interest on principal payments. I have called many times to resolve the issues, no one seems to have answers for me. I have been told that they always charge more interest in the first 6 months even if it is a principal payment. We were told to send principal payments only through the mail. We tried that but it was still the same, they charged interest on my principal payment. The website is not user friendly so I could not specify that I wanted the extra monies to be applied to principal. 
The bottom-line totals for my monies paid to BMO for 6 months are as follows : Regular monthly payments for 6 months = {$5000.00} Applied as Interest = {$5000.00} Applied as principal = {$6.00} Extra principal monies applied to loan = {$3300.00} Total monies paid to BMO for 6  months = {$8400.00} We financed {$86000.00}, still owed {$82000.00} after 6 months of payments. 
The difference equals XXXX, we paid {$3300.00} above the total due for the 6 months. I do not understand why BMO did not apply any monies to the principal payment from my regular monthly payments. 
I did file a complaint to the XXXX XXXX XXXX, I noticed on XX/XX/XXXX BMO went into our account and made multiple reapplied transactions. The bottom-line numbers remained the same, numbers were just manipulated to try to make it appear that everything was fixed. I called again to inquire about it and again I was told that I owed back interest and I missed a payment? We did not miss any payments. I have a printout of my account before XX/XX/XXXX and a printout after XX/XX/XXXX to show what was done. 
My husband and I are asking for the proper adjustments to be made so the regular monthly principal and our principal only payments are applied properly to our account. 

Thank you for your time

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation