My loan went into repayment status after being over 347 days past due which made my past due amount = up to $1600 that they want me to pay to bring it current and then make payment on the outstanding principal balance is $4200... Is there anyway I can pay off the principal balance and avoid paying past due amount.....
Can someone help me or give me some helpful information....
2007-02-16 04:29:00 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
I will assume that the company is following the legal limits for the amount of past due fees that they are charging you, if this is the case the only way you can get out of paying the late fees is to negotiate with the company to have them wave them. If they insist on leaving the late fees, then you are stuck - unless you want to make the extreme step of declaring bankruptcy.
2007-02-16 04:40:01 · answer #1 · answered by Suzanne 3 · 0⤊ 0⤋
If the loan is still with the original creditor, not sold to a collection agency, you have a hope of negotiating out of the late fees. You will have to give them something in return of course. You could offer to pay the principal balance in full, keep your payments on time for12 months, or they may propose something. I recently had to do this myself, though for a lot less. I had paid off a credit card a few months ago, but the payment was posted a few days after the due date, and then there was a new charge for the annual fee. The $29 annual fee was suddenly $79 because I didn't even know I had a balance. I politely spoke to a manager at their customer service center and asked her to waive the late fees if I paid the $29 right then. No problem with that at all.
If the account has been sold to a collection agency, you may have more trouble. They pay a percentage of the balance and don't necessarily know how much is principal and what are late fees. They are out to get as much as possible because they have to cover their losses from loans they can never collect.
2007-02-16 12:42:53 · answer #2 · answered by Brian G 6 · 0⤊ 0⤋
No, any payments you make will first be credited to the overdue amounts and interest, when that is caught up you will have any money left over to go to the principal. (original amount borrowed)
2007-02-16 12:38:02 · answer #3 · answered by ? 6 · 0⤊ 0⤋