Bought a new 2015 Limited in May, and financed it through HD Credit Corp. My payments are $380.09 a month payable on/before the 12th of each month. I have always sent my money in early.

My contract with them, page 3, paragraph 2, Application of Payments, first sentence reads: "The Lender will apply your payments to the Finance Charge, Expenses, Fees and the unpaid balance of the Amount Financed in any order the Lender chooses. The third sentence reads: "Any amount received in excess of any past due amounts and Monthly Payment Amounts will be applied to the unpaid balance of the amount financed."

My gripe is that I sent in $380.09 which was applied to my account on 12/3/2015. I also sent in another $100 on 12/11/2015 and instead of applying it to the principle, they took $19.32 in interest, and applied $80.68 to principle. I think they should have applied the whole $100 to principle.

My next payment, according to their statement, is now $280.09. I want to get them to apply the $100 to drop the principle, and keep my payment to $380.09.

Any legal minds think I have a chance of winning this? I don't want to pay my loan forward, I want to pay the principle down. Comments??

 

I also have a HDFS loan on my bike. I don't like the service fee of $3 to make online payments. I also don't like the short "window" of making a payment between receiving a statement and when the payment is delinquent. It's like they are trying to make you delinquent to collect the extra late charges.
I plan on paying the loan in full just to avoid the shady dealings.

 

Have you called or contacted them to discuss the issue?

 

I paid mine off last summer. Huge hassle if you try to do it online, 2500 max payment and 2 payments a month max. I ended up just having my bank send the balance to them. I'll never do it again. Took almost 7 weeks to get the title in the end.

 

As far as I know, if you include the extra with your normal payment, the extra is applied to the principle. If you do what you did it is treated as a normal partial payment.

 

I agree with Greg regarding the timing of the payment, but call them to discuss - worse case scenario is you learned a lesson and it only cost you $19.32

 

That sounds correct. Since most things these days are done via computer I think you'd be better off to call them directly if you wish to apply extra to the principle. At this point I think a phone call might still be helpful.

 

hd credit (eaglemark) is not bad. you just don't have a solid grip on what is happening. first, because you sent in 2 payments like that, the first thing that is taken out is the accrued interest. if they had received the extra $100 on the same day, then there would not have been any extra interest charges taken out. secondly, what you want to do, you are able to easily do. I don't want to pay my loan forward, I want to pay the principle down. which is essentially the same thing. just because they say you only 'owe' $208 for your payment, doesn't mean that you can't send them your usual $308, which will continue to pay down your principle.

it's a simple interest loan. after daily interest is paid, the rest goes to principle.

plus, if you set it up on autopay, there is no charge for your payment. or if you use your bank's billpay, there is no charge (unless your bank charges).

 

It might be interesting to know who HD sells their paper to. Anyone who has gone delinquent by enough to allow them to "break notice" would know.

 

This is why if I don't have the cash to afford a new bike I don't buy one. Not criticizing anyone for financing but that is how I buy my toys. Cash or I save until I can buy it.