Friday, March 12, 2010

Can finance companies charge interest on late payments?

When you make a car payment late can the finance company charge you interest on that payment for the life of the loan? So that when you make the last car payment they want a interest payment because the interest is calculated daily on the late payment.

Can finance companies charge interest on late payments?
Yes, they charge interest on the outstanding balance.
Reply:It is calculated because you didn't pay on time so it made the principle higher therefore interest is higher pay extra next several payment.


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