Here's my story:

I took out an Home equity loan from my local bank in January to pay off my truck. I mailed the $23,500 check to Ford Credit. My February and March statement showed a 0 balance, and I've been making payments to the bank on the loan. Today I get a statement from Ford showing a $170 balance so I call to see where that came from.

They said that I overpaid back in December when I sent them a check for $2000, and that money ran out so I need to make payments again. There was no mention of the January check for #23,500 because they never processed any check in January. I still have the $23,500 loan which with interest is now up to $24,000, and I've been paying interest to the bank for the $23,500 check that was never cashed. Now instead of reducing my interest from 7.5% to 4.0% I incurred both for a total of 12.5% for three months.

Ford said I have have the truck and signed a contract to pay them back with interest. At the bank, while I had a stop-payment issued against the first check, for a $35 charge, I asked them about getting my interest back for the money which never left their bank. They just said the money was withdrawn from my account when the check was written, and that is when the interest starts. I asked if they were collecting interest on the same money twice, but the bank says the money is in limbo, just like the check is in limbo.

I feel like my trust is being taken advantage of here. Banking is getting expensive and risky.

 

Doubt there is much you can do, but you should definitely consult a lawyer.

 

Rob them back.

 

You just now realize that the BANKS are there to rip you off? The whole idea of fractional reserve banking is to rip off the people. You pay interest on money 2,3,10 fold. Who knows how many times your money is loaned with while they give you nothing but crumbs in interest.

I hope all the banks fall!!!

PS. Watch google video : money as debt

This will explain how and why you start paying interest as soon as you get the papers signed. The bank paid you the money in your account, so they created the debt, which in turn allowed them to create 10 times that in loans to others (Factional Reserve).

 

yep

 

So if you sign a contract with Ford motors, they don't deduct the interest for early payment? I didn't know that was legal!

 

I thought of you while I was there, saying to myself: "Now remain calm, and don't get escorted out by security like Pickup Man"

 

I understand that money is created when they type up my check, I get that I'm paying interest on money that did not exist before I asked them to create it for my use. What I'm struggling to understand is what happens when I stop payment on that check because it's lost? Doesn't the stop payment also stop the creation of money?

 

write Obama he'll fix it

 

It's not legal, that wasn't the issue. Say I owe $450 per month, but I pay $1000 to pay the balance down, and $150 of that payment is interest. They apply the $150 to interest, and the remaining $850 reduces principal. That's what I wanted, and, that will reduce my interest. The problem is that the $550 I over paid will apply to next month's payment which will show $0 due. I can still pay my normal $450, but I don't have to make a payment. The the following month I'm still overpaid by $100 so my amount due is only $350.

It works out great, but when that is all the information they provide on the statement it can get confusing. There is one other number on the statement called the payoff balance, and that is the number I missed when I filed the statement.

 

In my line of work the juice is always running.

 

OK, so the money was just sitting in the checking account, doing nothing.
So the Question is,"Who lost the check?"

 

I don't think we'll ever know. I put it in an envelope with a stamp and mailed it, just like I do with all my bills.

It was a bank check, so I don't know where the money is sitting, but the bank will pay the amount of the check when it is cashed, so they must have it somewhere in one of their accounts.