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Santander / not apply extra payments properly

P.O. Box 660633, Dallas, TX 75266-0633, Plano, TX, United States
Contact information:
Phone: 1-888-222-4227

I have an auto loan with santander in dallas, tx. The interest rate is extremely high so I am trying to pay off the loan early. However, when ever I send in an extra payment, 50% of the payment (sometimes more) goes towards interest. I call them and ask them if there is an early payoff penalty and they tell me no. They say that all I need to do is mail the extra payment with a letter stating that I wish to have the payment applied to the principal. I have done this twice. The first time was in january. I paid an extra $400 (above my normal monthly payment) and $220 was applied to interest. I called them and they said that they did not receive anything stating what to do with the payments so it was applied like a normal payment.
I once again verified that I could pay off early without penalty. She told me that there was no problem with that. She said all I need to do was to mail the check with a letter stating to apply overpayment to principal so the next time, I sent an extra payment I took a picture of the check and the letter and then mailed to santander requesting the overpayment be applied to the principal. Once again, 50% of the over payment went to interest. I have sent emails, letters, and phone calls. I am at my witts end as to how to pay off this loan as 50% of the load is going towards interest. My concern now is that none of the payments are being applied properly. Is it even legal to apply 50% of overpayments to interest? I was going to upload the pictures I have taken but since the include my bank info I didnt want it posted openly to this website. However, I do have pictures of the letters I have sent to prove my case

Ki
Mar 10, 2013

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