Car payments continue after the loan is paid...

[dpodblood]

the nsf fee is different from an overdraft charge.

I don't understand the point of this fee. Basically the payment bounced so I payed the bank $40 to do what exactly?

 

[Kyteland]

No, it's not the checking account bank's fault at all (although a $40 fee is ridiculous and you should remove or add overdraft protection, whichever one stops the fees), but I'm just saying that in my experience, they'll cancel a NSF fee or two if you just call and explain.

Rule of thumb: whichever one instinctively sounds good for you is the one that lets the bank screw you the hardest.

 

[Brainonska511]

The bank which issued the loan will only allow automatic payment. The same thing for my rent, my student loan, and my car insurance. If I had the option to "push" than that's what I would be doing.

If that was the case, I'd say screw them and write them a check. No way they'll have direct access to my account and jerk me around when they screw up.

 

[kami333]

The bank which issued the loan will only allow automatic payment. The same thing for my rent, my student loan, and my car insurance. If I had the option to "push" than that's what I would be doing.

You can use billpay and have a paper check sent automatically. Used to do it with my rent since I would always forget to go get a stamp. Unless it's some bank that's retarded like Huntington who apparently won't accept a non-electronic payment without an accompanying payment stub.

 

[JulesMaximus]

Why would you defer payments on a new car for 6 months? You are basically depreciating a vehicle you aren't paying for so you are gauranteed to be upside down in this vehicle when you first start paying it off. Not to mention rolling more debt into it.

Just curious, what did you buy?

 

[dpodblood]

Why would you defer payments on a new car for 6 months? You are basically depreciating a vehicle you aren't paying for so you are gauranteed to be upside down in this vehicle when you first start paying it off. Not to mention rolling more debt into it.

Just curious, what did you buy?

Yeah I did realize that when I deferred the payments, but decided to do so anyway. The reason was because I had some remaining credit card debt which I wanted to get out of the way (The credit card was 19% interest, and the car loan is 0%). I figure if I can pay off the credit card, I can then put some money into my savings, earn interest, and pay off the car early anyway.

The car is a new 2010 Kia Forte. I traded my 2000 Maxima. The Kia doesn't have anywhere near the performance, but I needed something that would fit in my budget, and would have a good warranty. After the bad experience I had with my Maxima excellent warranty was a must.

 

[OutHouse]

The bank which issued the loan will only allow automatic payment. The same thing for my rent, my student loan, and my car insurance. If I had the option to "push" than that's what I would be doing.

i would never do business with such an arrangement. ive known too many people getting totally fucked over for such practices. and is why nobody, no company, no bank will every get permission from me to pull payments out of my checking account.

 

[JulesMaximus]

Yeah I did realize that when I deferred the payments, but decided to do so anyway. The reason was because I had some remaining credit card debt which I wanted to get out of the way (The credit card was 19% interest, and the car loan is 0%). I figure if I can pay off the credit card, I can then put some money into my savings, earn interest, and pay off the car early anyway.

The car is a new 2010 Kia Forte. I traded my 2000 Maxima. The Kia doesn't have anywhere near the performance, but I needed something that would fit in my budget, and would have a good warranty. After the bad experience I had with my Maxima excellent warranty was a must.

Well, using that money to pay off a high interest cc makes more sense anyway. How much debt from your old car did you roll into the Kia? 0% interest is sweet!

I have an '03 Maxima with 95k miles that has been pretty reliable. I'm the original owner though and I've taken excellent care of it...plus I own it free and clear so I have about $5k of value there when I do finally decide to replace it.

 

[dpodblood]

It was only $3300 which I rolled into the new loan so it wasn't too bad. Not to mention the loan on the Max was 12% interest (bought just after I graduated college, so I had no credit to speak of).

I am jealous of your 95k-03 Mine had almost 240k on it when it was traded. I will miss that indestructible v6 though.

 

[JulesMaximus]

i would never do business with such an arrangement. ive known too many people getting totally fucked over for such practices. and is why nobody, no company, no bank will every get permission from me to pull payments out of my checking account.

I have one loan I do this on and I have a savings account setup strictly for them to draw payments on for this loan. I move money into the account every month just before the payment is scheduled to post and that's all. Makes it easy to keep track of what they are doing with my money.

The loan is almost paid off so I figure I'll just keep funnelling money into this account after it is paid off for toys I don't want my wife to know about.

 

[JulesMaximus]

It was only $3300 which I rolled into the new loan so it wasn't too bad. Not to mention the loan on the Max was 12% interest (bought just after I graduated college, so I had no credit to speak of).

I am jealous of your 95k-03 Mine had almost 240k on it when it was traded. I will miss that indestructible v6 though.

Still, you're going to be upside down in that Kia for the entire time you own it. Keep it until it is paid for would be my advice at this point. Zero % interest doesn't make much sense to pay it off early. That's free money! Put any extra into savings in case you lose your job or something.

Do NOT use the credit cards. Those are easy to charge up and difficult to get out from under once you start carrying a balance.

 

[dpodblood]

The only reason I want to pay off the Kia early is so that I am not paying for a car not covered by warranty. As far as I'm concerned the Kia can die in a pile, and be worth $0 as long as I no longer owe on it.

The reason I ended up accumulating so much debt in the first place was because I had to keep dumping money into the Maxima for repairs. If you look up the thread "paying for a hatemobile" you will get the full history.

 

[JEDI]

So in December of last year I traded my car for a new car, and the dealership paid out the remaining balance on the loan for the original car. (the 1st car had a lot of problems that just weren't worth fixing.) The new car also has no payments for six months.

So under the assumption the 1st loan was paid out, and I wouldn't be paying for the new car until May I used the money in my checking account pay off my credit card.

Then on the 21st of the month the bank which held the original loan attempted to pull a regular car payment out of my checking account, despite the fact that the loan had already been paid out. This then caused me to be charged a $40 NSF (non sufficient funds fee) because I did not have enough money in my checking account. Again on the 29th of the month they attempted to pull out the car payment. Again another $40 NSF fee.

I finally got things sorted out with the bank which issued the 1st car loan, but now I have paid $80 worth of NSF charges for a payment which never should have been pulled out in the first place...

Can I make the bank which wrongly tried to pull money out of my account reimburse me for the $80, or am I SOL?

and that is why you should NEVER EVER allow anyone into your acct to auto withdraw $ from you.

set up bill pay and push $ to them instead.

 

[GagHalfrunt]

I'm pretty sure the $40 fee IS overdraft protection. What he needs to do is opt out of overdraft protection and just have his bank deny transactions that can't be covered.

No. Overdraft protection is a personal credit line attached to the checking account. If you bounce a check the bank gives you an instant loan to cover the over so that the check clears.

 

[dpodblood]

No. Overdraft protection is a personal credit line attached to the checking account. If you bounce a check the bank gives you an instant loan to cover the over so that the check clears.

Right; in that case I would have seen my bank account go into the negative. That didn't happen, so what is the NSF fee actually doing? What service am I actually paying for?

 

[JulesMaximus]

The only reason I want to pay off the Kia early is so that I am not paying for a car not covered by warranty. As far as I'm concerned the Kia can die in a pile, and be worth $0 as long as I no longer owe on it.

The reason I ended up accumulating so much debt in the first place was because I had to keep dumping money into the Maxima for repairs. If you look up the thread "paying for a hatemobile" you will get the full history.

Just read a little of that thread.

Oil Change/Exhaust Patch $121.97
Battery + Installation $107.33
Rear Brakes $795.92
Spark Plugs $67.77
AC Compressor $1,385.05
Exaust Patch $169.19
Spark Plug Installation $99.61
CV Boots/Sway Bar Links $569.95
Left Lower Control Arm $142.26
Left Lower Control Arm Installation $189.44
Tokico HR2 Struts $513.83
Shock/Strut Install and Alignment $393.24
Brembo Blank Breaks $475.65
Rad support + Front Exhaust $2,311.47
Right Front Axel + Install $350.75
Tow + Starter motor & install $451.29

None of that stuff seems out of the ordinary for a car with that many miles on it quite frankly. Some of the prices seem a bit steep though.

 

[Lifted]

Can I make the bank which wrongly tried to pull money out of my account reimburse me for the $80, or am I SOL?

No, you are SOL.

Do not call the bank where you have the checking account.

Do not call the bank that shouldn't have attempted to dip their beaks into your empty checking account.

Trust me on this, I've had bank accounts for years so I know what I'm talking about.

 

[dpodblood]

Just read a little of that thread.



None of that stuff seems out of the ordinary for a car with that many miles on it quite frankly. Some of the prices seem a bit steep though.

Yeah I agree with you totally. Overall the car was a bad decision, and one I have learned many lessons from. The Max was my first car and I really didn't know what I was doing going into the deal.

 

[CRXican]

Right; in that case I would have seen my bank account go into the negative. That didn't happen, so what is the NSF fee actually doing? What service am I actually paying for?

stupidity fee

 

[jdobratz]

No. Overdraft protection is a personal credit line attached to the checking account. If you bounce a check the bank gives you an instant loan to cover the over so that the check clears.

That is one form of overdraft protection. It can also be setup to draw funds from another account to cover an item presented for payment. This is a better setup, in my opinion, and in most cases, the fees are less to draw from another account versus drawing from an ODP loan source.

 

[summit]

I don't understand the point of this fee. Basically the payment bounced so I payed the bank $40 to do what exactly?

You are paying the bank a fee because the payment bounced. Its more of a penalty than a costs issue.

 

[lord_emperor]

Can I make the bank which wrongly tried to pull money out of my account reimburse me for the $80, or am I SOL?

My bank did something similar, I had given them a stack of post-dated cheques to pay off a loan (the only option, they're really behind the times).

They failed to cash one last November, after calling and basically being told they can't find it, I made my payment in person with cash. If I hadn't done so I would have been dinged for failing to make the loan payment (for which they already had a cheque).

December comes along and they evidently found the cheque because they cashed two at once. This caused a $40 NSF fee at this bank and a $10 overdraft fee at the bank where my chequing account is.

I had to call and work my way up the ladder, eventually informing the branch manager what a piss poor failure of a service they were providing and arranging a credit to cover all the costs of their screw up.

Now I have the Branch manager's direct number, and if they fail to deposit a cheque on time I can go right to the source.

 

[dpodblood]

stupidity fee

Wow; You know what. I have never seen you make a single post on AT that is helpful or relevant.

 

[GagHalfrunt]

Right; in that case I would have seen my bank account go into the negative. That didn't happen, so what is the NSF fee actually doing? What service am I actually paying for?

You're paying a service charge for a non-transaction. Just one of the many ways a bank can legally nickle and dime you to death. If you object to the fees take your business elsewhere, there's a bank on every corner. Find one that takes care of you.

 

[JulesMaximus]

First, I'd call the company you had your previous auto loan with and find out why they are continuing to try to withdraw funds from your account and to verify that Kia paid off your loan with them. If they say Kia hasn't paid off the loan then I'd call their finance company. After that I'd call your bank and explain the screw up and see if they will waive the NSF fee.

Good luck!