Sorry to hear of the callous attitude you experienced.For those still following along:
The loan operations officer replied as follows. She did not address or respond to any of the points or questions I made.
So its off to Consumer Financial Protection Bureau
'Should you wish your additional payments be applied to principal reduction only, without any interest being paid,
we require that you provide that direction to us. Otherwise you are paying your loan ahead of your due date, as reflected
in your current due of 9/21/2025'.
As a reminder, never before was this requirement published or made known anywhere.
If I were in your shoes, in my compliant to CFPB, I would stress the following.
-1) cover page from your loan disclosure, showing that there is no prepayment penalty;
-2) options your lender gave you when you attempted to pay extra toward principal, emphasize that neither options given really describes an extra principal payment and how confusing the set-up is;
-3) show actual extra payment made, ideally via statements from lender;
-4) show just how difficult your lender makes it to make principal only payment. The communication you received today shows that it recognizes you cannot make principal-only payment online.
That's for setting forth the facts section of your complaint. The complaint also has a section for remedy sought. For this section, ask for retroactive application of previous extra payments to principal only. This is trivial to do on the part of the lender. The lender may or may not retroactively adjust going all the way back a year, but even then, you can ask for certain parts of it to be retroactively adjusted (say for the last six months).
Statistics: Posted by InvisibleAerobar — Fri Sep 27, 2024 7:47 pm