|
 Dear
Terry,
Last year I took out an auto loan of $32,900.49
with APR of 4.99 percent for 60 months. My credit
union calculated my monthly payment (also written
on the contract) to be $465.11 and gave me 60
payment coupons to be accompanied with the check
each month. But I just realized that this monthly
payment amount is substantially smaller than what
I should have been paying -- $620.72 per month,
according to Bankrate's
auto loan calculator. Does this mean that
my legal obligation is to only pay the amount
based on the coupons or $32,900.49 + 4.99 percent?
-- Alan
 Dear
Alan,
Even financial institutions make mistakes, though
this one seems to be a whopper, since your total
payments of $465.11 for 60 months will equal only
$27,906.60, far short of the $37,243.20 for a
loan of $32,900.49 for 60 months at 4.99 percent.
The calculated payment amount of $465.11 would
have been for a loan of $24,652.49 over the same
60 months at the same 4.99 percent. Considering
that the 49 cents appears in both loan amounts,
it strikes me as perhaps more than a coincidence.
Are you sure you didn't trade in a car on this
deal and get the difference of $8,248 knocked
off?
Assuming it wasn't a trade or a combination of trade and rebates,
I'd say you have two choices: Point out the error
to the credit union and see what you can work
out, or consult a lawyer about whether you can
be held liable for the shortfall once the loan
is paid off.
I'd recommend consulting a lawyer first so you know where you stand before contacting the credit union.
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