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My son had an accident and this is the balance of what was owed because he did not have gap insurance. The company got a judgement against him for the balance due. He has been paying them $50.00 a month on this judgement and has been paying for well over a year. The last payment made they charged 30.91 in interest and 19.09 went to the principal. The judgement was made in a court in Grand Rapids, MI.
On 4/29/2011.The statutory rate on this was 13% from 2/17/2011 to 4/18/2011, if that helps any.
Can my son ask for a balance on how much he owes and how they are calculating the interest? I am not an expert on interest but it seems they are charging interest on each payment and it amounts to a lot of money going to interest and not much going on the principal to get this paid down.