American Finco/cit Bank / Finance charges
In December I purchased a water system from a local dealer who finances with American Finco/CIT Bank. Originally the finance charge was 19.99% 2 months later it went up to 21.99%. In june 2009 I received a letter the interest rate will go to 25.99% even though I was making my payments on time and paying more than the minimum payment. I was livid. So I withdrew the money from my annuity and paid the amount stated in the "Total new Balance" on July 22, 2009. I called to verify their receipt of my check and the automated voice stated I had a -0- balance. August 14, 2009 I received a statement for $75.34 finance charges placed on my account on August 10th. I called to complain and was told this was for 10 days of finance charges and that I should have called to get a payoff amount. I was so mad I forgot to ask for what 10 days since my payment was posted on July 28th 5 days before the "Payment Due Date". I concieded and told them I would pay the $75.34 she then preceeded to tell me that the amount was now $76.09 and this amount would be good until 8/29/09 before I would be charged another finance charge. I'm sorry but I didn't know it was legal to charge a finance charge on a finance charge. It clearly stated on my statement this was a finance charge not an amount I mistakenly omited from my payoff check. It also stated on all my statements "to avoid additional finance charges to pay by the payment due date, which as I stated above my check was posted to my account on July 28, 2009 and my "Payment Due date " was August 1, 2009. If I had not called and paid the $75.34 by August 30, 2009 (Payment Due Date) I would have had to pay another finance charge.