Auto loan question - Please help

[Curious1]

We are financing our car through a Federal Credit Union. Our loan is pretty high so I ignore the statements they send me because it will be several years before the loan is paid off. The other day, I took a good look at the statement and realized that the lender put all my payment towards the finance charge and nothing was credited. Isn't this illegal? I am going to ask for duplicate statements to see how long they have kept this up. What action should I take? Should I contact them so they can fix the error?

[ladylavendar81]

Mnnn That seems a bit odd. I just got my car in Aug from a credit union and they apply my payment to the loan and not the finance charge. Finance charges are usually applied if a payment was late or it was bounced from the bank you attempted to pay from. But if the payment was not late or it didnt bounce, check your bank rules to make sure that you didnt inadvertantly sign up for one of those loans that dont apply the payments to the loan and it applies it to principle. Contact the bank for sure. Good Luck! Also make sure that they are accredited by the credit union accredication company.

[hailey]

there should be normal amoritization. earlier payments mostly towards interest, but some of it should also go against principle. You should contact them and ask