Accrued Interest on Loan after Payment

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Hello,

I have a car loan I am about to pay off, but I have a question about how interest has been assessed on the loan. Each month I make a payment online, interest continues to be assessed on the full amount until they post the payment on their end. That isn't always immediately and it isn't always the next business day. There have been times where it is up to 4 business days before they post my payment. If I'm not making myself clear, here is an example. Let's say I owe $5,000 and today I make a payment of $500. If that payment doesn't post until 4 days from now, I'm still being charged interest during those 4 days for the entire balance of $5,000 - not $4500. I know the calculation is more complex than this, but I'm just wondering if this is normal or if I need to have this looked into and make sure I haven't been overcharged interest.

I have no idea if this is the place I should be asking such a question, but I'm hoping someone may be able to help me out.

Thanks for any help!

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4 days of 2% apr interest on $500 is less than 11 cents. Most people here place a value higher than that on their time taken to read your post. How much time do you want to spend yourself for a max potential savings of 11 cents?

I agree with you, it doesn't seem quite right, but it might not be worth your time to fight this battle.

The interest rate is 9.54, but I understand. Something isn't right. I've never really thought about it as much as I have the last few days. I'm getting ready to pay off my loan, so I guess that has prompted me taking the time to deal with it. A few cents I wouldn't bother myself with. However, it's usually between $10-$15 difference.

Wait, you mean....<gasp> they charge you interest until your payment actually clears?????

andrew63 said:   The interest rate is 9.54, but I understand. Something isn't right. I've never really thought about it as much as I have the last few days. I'm getting ready to pay off my loan, so I guess that has prompted me taking the time to deal with it. A few cents I wouldn't bother myself with. However, it's usually between $10-$15 difference.
If they are charging 9.5% interest on a car loan, they are dealing with subprime clientele. Makes sense to wait till the payment actually clears for this type of customer.
What is your monthly payment. I dont see how you get $10-$15 difference because of 4 days delay in posting. Are you paying ~12k each month?

1. Read the contract. Make sure they do not have a clause that addresses this situation and how they say they will deal with it.

2. If no clause, call insanely rich class action lawyers.

3. #]%<%*{

4. Profit.



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