Can they do this legally?

Question

I bought a car a year ago and have been making payments on time everytime. The payment was due on the first and was late by the16th and if I paid on or after the 16th I was charged an extra $12. Then about three or four months ago Capital One bought out Hibernia which is who I paid my note to. They sent me a letter saying nothing had changed and to keep my payment book blah blah blah. Well, last week on the 12th I get a call from capital one saying that my car note was late. I said no it's not late until the16th and he said no, it's late after 10 days and they charged me $26 somthing in late fees. I'm pissed because I guess since Capital One bought out Hibernia they obviously have different terms, but should I have to comply with these terms when my payment book says one thing and I have been paying it that way for a year now?! They never sent me any letters stating that things were going to change and I don't agree with these changes! What can I do?

Answer 1

Unfortunately, you have to go by their new terms and conditions and are subject to their new fees. You should have rec'd something in the mail explaining this. If you raise enough hell, they may credit or waive the late fee, but don't get your hopes up. Just keep calling and keep asking for the manager, then the manager of that manager. Remember to keep your cool and just explain to them that you never rec'd any information about their new policies and how you will have no problem complying with the new terms, but you were completely unaware of those terms until the phone call.

Good luck!

Answer 2

On a revolving charge account, the terms many be changed upon notice to the borrower. In you case this is a fixed term loan, and the terms and conditions are spelled out in your finance contract. If there is a 15 day grace period in your contract, Capitol one has to accept that.

Pay by the due date and you will not have these problems.

Capitol one makes a great percentage of their profit from late fees. They will try charging you more than the contract allows, because the worst thing that can happen is they will not collect it!

Contact a lawyer or legal aid for help!

Answer 3

You're cetianly within your rights to question the change in late fee charging. Especially if you have the letter from the new lender saying nothing had changed, and to continue using your current coupon book.
Usually though, somewhere in the fine print, they will mention a change to the late fee somewhere in the myriad of literature they send. If you are certain they did not adive you of the change, call them and discuss it. Don't talk to the operator that answers and gives you a canned answer. Ask to speak to someone who has the authority to remove the late fee. Anyone else is only going to quote company policy, and do their best to keep you conversation with them very short. Good Luck

Answer 4

Go to the bank, and ask to speak to whomever is in charge of your loan. Take the letter that they sent you, and explain to them that you weren't aware that the grace period had changed. Ask if they reported it as a late charge, and if they did, is there a way to correct it. Ask for them to refund your $26, or a t least give you credit for it on your account. If they won't cooperate, try refinancing your car somewhere else.

Answer 5

Ask a lawyer or an accountant. Occasionally - like with life insurance, you can say no to those charges, they just make it really hard to do so.

Answer 6

Unfortunately since you were informed of the new note-holder, you are legally required to investigate their new terms. It sucks and I agree totally unfair since they told you "nothing changed" but all you can do is make a complaint. What they did is scummy but not illegal.

Answer 7

Even if it isn't legal it will cost you a lot more than the late fee to hire an Attorney and fight it.

Just change the date you pay.

Answer 8

Just pay your note on time DUH