Consumer complaint received 2025-03-06 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: Exeter Finance, LLC.
State: IN

Complaint narrative:
Formal Complaint Regarding Loan Irregularities and Potential Lending Violations To Whom It May Concern, I am writing to formally express my concerns regarding potential lending violations related to my vehicle loan. I purchased a car from XXXX XXXX, located at XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX XXXX IL XXXX ( Phone : ( XXXX ) XXXX ), on XX/XX/XXXX. The total cash price was {$25000.00}, with a down payment of {$3000.00}. The total amount financed was {$26000.00} at an interest rate of 23.82 % under a simple interest car loan, as stated in the contract. 

Issues with Loan Principal and Interest Application Shortly after making substantial payments beyond my required monthly amount, I noticed that my loan principal was not decreasing as expected. Upon reviewing my payment history, I discovered that the financing company had failed to apply any portion of several payments toward my principal balance. 

As of XX/XX/XXXX, my loan principal has only decreased to {$22000.00}, whereas, under a properly applied simple interest calculation, it should be approximately {$15000.00} or lower. The way this loan has been structured and managed suggests that I may never be able to fully pay off this car, regardless of how much I pay beyond my required monthly payment. The payments appear to be applied primarily toward interest rather than principal, which I believe is a violation of lending laws. 

Additionally, my monthly payment amount does not match the standard calculation for a 72-month simple interest loan at 23.82 % APR. According to industry-standard loan calculators, my payment should be {$600.00} per month, yet I have been charged {$680.00} per month, a discrepancy of {$78.00} per payment. 

Under a simple interest loan, interest is calculated daily based on the remaining principal balance. If my principal is not being reduced, the lender continues to collect excessive interest, effectively prolonging the loan indefinitely. 

Detailed Payment Discrepancies and Additional Fees I have paid a total of {$26000.00} in interest so far. 
Out of this amount, only {$3600.00} has been applied to my principal. 
From XX/XX/XXXX, to XX/XX/XXXX, some payments were applied to the principal, but between XX/XX/XXXX, and XX/XX/XXXX, nothing was applied to the principal despite timely payments. 
Additional late fees and unexplained charges were assessed multiple times, including but not limited to : {$31.00} on four occasions in XXXX {$95.00} fee in XX/XX/XXXX {$34.00} fees repeatedly charged between XXXX and XXXX On XX/XX/XXXX, a full payment of {$680.00} was made, yet nothing was applied to the principalthe entire amount was allocated to interest. This pattern continued for multiple payments, including larger amounts over {$700.00}. 
By XX/XX/XXXX, after making 14 paymentsincluding five larger payments of over $ XXXX principal was still at {$24000.00}, whereas it should have been closer to {$20000.00} based on standard calculations. 

Between XX/XX/XXXX, and XX/XX/XXXX, not a single dollar of my payments was applied to my principal. Despite continuing to make on-time and overpaid amounts, my principal balance remained unchanged for over a year. 

This pattern continued throughout XXXX, despite additional overpayments, leading to an artificially prolonged loan term and excessive interest collection. 

Potential Lending Violations and Legal Concerns I believe the lender has violated multiple federal and state lending laws, including but not limited to the following : 1. Truth in Lending Act ( TILA ) 15 U.S.C. 1601 et seq.

TILA requires lenders to clearly disclose loan terms, payment allocations, and interest calculations.

The lender 's failure to apply payments correctly and overcharging on monthly payments appears to violate the transparency and fair lending principles under TILA.

Lenders must provide accurate amortization schedulesa discrepancy in how interest is applied may constitute a breach of disclosure requirements.

2. Fair Credit Billing Act ( FCBA ) 15 U.S.C. 1666 The FCBA protects consumers from billing errors and misapplications of payments.

My payments were misapplied or withheld from my principal balance, resulting in excessive interest charges.

This manipulation of interest charges may be a violation of FCBA protections.

3. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Dodd-Frank Act ( 12 U.S.C. 5531, 5536 ) Under UDAAP regulations, financial institutions can not engage in deceptive or abusive lending practices.

Failing to apply payments to the principal balance while charging excessive interest is deceptive and financially harmful.

Lenders must ensure transparent loan servicing and proper allocation of funds.

4. Equal Credit Opportunity Act ( ECOA ) 15 U.S.C. 1691 et seq.

ECOA prohibits discriminatory lending practices. 
As a XXXX XXXX XXXX, I am concerned that predatory lending practices may be disproportionately affecting vulnerable consumers.

5. State Usury Laws and Predatory Lending Regulations Many states have laws restricting excessive interest rates and predatory lending tactics.

The total amount I will pay far exceeds the agreed-upon contract amount, raising concerns of potential violations of state usury laws.

Request for Investigation and Resolution I urge an immediate review and investigation into this matter to determine : Why my payments were not applied to my principal as required under a simple interest loan structure.

Why I was overcharged on my monthly payment amount beyond the agreed-upon contract terms.

Why excessive fees and charges were continuously assessed.

Whether these practices are being applied to other customers, potentially amounting to fraudulent lending activities.

I believe numerous violations of consumer protection laws and lending regulations have occurred, and I request appropriate corrective action, including : Recalculation of my loan balance with proper application of my payments to the principal.

Refund or adjustment for overpaid interest and excess fees charged beyond the loan agreement.

A full audit of the payment history to ensure compliance with federal and state lending laws. 
I am XXXX XXXX XXXX and a XXXX XXXX and I have never encountered such deceptive lending practices before. I strongly believe that these issues should be addressed not only for my case but for all consumers who may be affected by similar misconduct.

I appreciate your immediate attention to this matter and request a written response outlining the next steps toward resolving these discrepancies. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Indiana XXXX XXXX XXXX

Company response to consumer: Closed with explanation