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Can finance companies apply payments toward late fees instead of the balance in illinois?
I was late with a few car payments and was charged late fees. This time I had the money and made my monthy payment early and Wells Fargo decided to apply my payment toward the late fees instead of the March payment. Is this legal? They are really getting on my Last Nerve!
Ok. I am not trying to say that I don't own up to my responsibility. I have been unemployed since March 07. It just seems like you kill yourself to try to get ahead and be responsible, and none of these companies want to work with you knowing what the economy is looking like.
3 Answers
- shortstf00Lv 41 decade agoFavorite Answer
Its written into the loan documents how they will apply payments if there is no specification made by you. Next time you make a payment make sure to specify where you want to money to go to. Some of it you may not have a choice in, but sometimes you do (Is depends on the situation). If you paid early and Wells Fargo thought it was going to be an extra payment, then yes, they will apply it to late fees first because that is considered part of the previous payment that has not been filled yet. Basically you have to fulfill the previous months payments before you can work on the current or next months payment. Think of it as filling a glass with water. You can't fill the top half without filling the bottom half first.
Source(s): I used to work for Wells Fargo Phone Bank. Got questions like this all the time. - redhairedmama75Lv 51 decade ago
It's perfectly legal. You have no legal recourse here. The bank can repossess your car if you do not bring the payments and the late fees current and keep them current. If anyone is getting on any ones last nerve it is you on theirs.
- STEVEN FLv 71 decade ago
Read the contract you SIGNED when you took out the loan. Not only CAN they apply payments to late fees first, they are contractually REQUIRED to do exactly that.
