BB&T Financial Consumer Loan Complaint

BB&T Financial Consumer Loan department,

Vehicle loan Managing the loan or lease Ohio

In - 2009, we entered into a retail sales agreement with Regional Acceptance Corporation, which has an office in -, Ohio, among others. The contract was for a purchase of almost $18000.00 for a used car. The interest rate RAC gave us was 23.75 %, which equaled total " finance charges '' over the 66-month life of the loan of $14000.00. This was a total contract amount of $32000.00. During repayment, RAC failed - times to allocate the agreed amount to principal from our monthly payments, for a total underpayment on loan principal of $5800.00. Included in these - failures were five months where RAC allocated - of our monthly payment dollars to principal. Furthermore, because we paid late, RAC charged extra interest in excess of the amount allowed by Ohio contract law, over the required amount by a total of -.


When contacted and informed of their mismanagement of funds, RAC 's reply was that they were entitled to reduce our principal payment every month because we paid after the due date, although the provision for this in the sales contract and Ohio law instead allow the lender to extend the contract with more payments based on the amount of extra interest accruing, with written notice given to the borrower. RAC now insists that, after - payments resulting in an 8.8 percent total overpayment of the contract, that we still owe more than $3200.00, or 18 percent of the original principal agreement. Their representatives repeatedly deny that RAC has done anything inappropriate, even when confronted with details of underpaying principal, overpaying interest, and using wrong APR and per diem to calculate extra interest for late payments.