Q: On a auto loan, can the lender charge a flat $10.81 a day for 6 years? Because that's over 24 thousand..
Got a car loan traded my car for another and got 6 thousand dollars down payment the loan is 6yrs for 27k but I just read that the company charges me $10.81 a day no matter what turning my 27k car loan into over 40k, please tell me that's illegal if it's not then the system is so messed up that my thoughts on America just changed..please help..
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A:
It sounds like you're dealing with an auto loan that may have unexpected terms. Charging a flat fee of $10.81 a day for six years is essentially a per diem interest rate, which would accumulate a large amount over time. If your loan agreement does mention this type of daily charge, it's important to carefully review the terms to understand how the lender calculates interest.
If this charge was not made clear when you signed the loan, or if it seems unreasonable, it may be worth consulting with a consumer protection agency or a legal expert to review the contract. Sometimes lenders use complicated terms, but they are required to disclose all costs, including interest rates, in a clear manner according to the law.
There are strict regulations governing loans in most places, so if you feel something is wrong, don’t hesitate to ask questions and challenge the terms. This situation sounds frustrating, but there may be a way to get more clarity or relief.
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