What if my auto loan company is not applying the payments correctly?

Depends what you mean by not applying them correctly.





If they're just not applying your payments at all, you need to contact the financing company shown on your billing statement (this is not necessarily the same company as the one that makes or even sold you the car). After that, I would contact an attorney (preferably one that specializes in banking and/or contract law).





If you've been overpaying your car payments, or making multiple payments in a single month to try and pay the car off sooner, you need to speak to the financing company... they don't always do what you hope they will. They each have their own different policies. Some companies may take your extra payment and apply it towards the principal balance on your account (making the total amount you owe lower), but you're still required to make a payment the same time the following month. Other companies may take the extra and apply it forward to the next month, eliminating your responsibility for the following month but not making any impact on your total balance until the payment registers the following month. Still others take the payment and apply it backwards towards the last payment on your account so that you still owe the following month, your balance doesn't decline, and you're just done paying sooner.





If this is the situation... decide what it is you want to accomplish with your payments and then speak with the financing company about it to see what they allow and what their policies are.

What if my auto loan company is not applying the payments correctly?
Call customer service or loan processing. Talk yourself up the latter until you get to someone who can (1) tell you what the problem is and (2) fix it.





Be calm and polite...but insist on getting answers.





Find out if they have a physical location near you: if so, go there.





Talk to the salesman who sold you the car -- go see him.



Reply:Well one way would be to threaten them with by going to a TV news consumer reporter in your area and exposing them.





Otherwise I would start with the Attorney Generals office in your state. They would be able to direct you.