Yamaha Motors Financing & Problems with payment towards principle

[CLBeerbower]

Team,
Hoping someone can provide some help. I am having problems with my loan payment when I overpay the amount stated on the bill. My plan was to pay an extra $100 to pay down the loan quicker. However Yamaha just puts that towards a future payment and not towards principle. I have called multiple times and their customer service is terrible. The basically can't seem to even understand what I am trying to do, it's shocking.

Anyone have the same issue? Any fixes out there?

 

[Mesa50]

Most finance companies will automatically apply any overpayment to future payments, unless you specify in writing somewhere on the payment slip “Apply $100.00 to principal balance”…. If you are paying online, or via phone, this option might not be available.

 

[Rockit69]

Thats the way they work. Hyundai is the same way, just make your payment and dont worry about it.

 

[FSH 210 Sport]

U S Bank is the same, their payment slip doesn’t even have an option to pay more towards principal. There are only two ways to make extra principal payments. 1- If you have a U S bank account you can pay more principal online. 2 - Take your payment slip and walk into a branch. In my opinion these are predatory lending practices.

I will also state that my experience with U S bank has been very poor. I’ve never dealt with an organization who employs so many incompetent people, and by that I mean stupid people, really stupid.

So, once a month I walk into the main branch in my town with $1000 cash and make an extra principal payment and I get a receipt. On that receipt it does not state clearly that it is an extra payment towards principal but the next months statement shows the corresponding reduction in principal.

The csr’s you are talking with know full well what you are trying to do, they just act stupid so as to keep you paying the full interest for the term of their loan, that’s how the lending companies increase their profit. By maintaining the highest unpaid balance the lending companies make the most money as the interest payment is calculated each month based on the unpaid balance.

Review your loan docs carefully and look for verbiage in there in how to make extra principal payments.

You could start putting that $100 a month in a separate savings account and then use that money to pay off the loan early. Or see if you can get a loan with a different more reputable lending agency that makes it easier to make extra principal payments and pay off the loan you currently have.

The last thing I can think of is to contact your states attorney general office and see if they can help you. After the sub prime fiasco a lot of states enacted laws targeted at predatory lending practices.

 

[jthackman]

just an fyi..that has not been my case with usbank.
i set up 'bill pay' from my bank to usbank an amount way over my loan payment each month. they calculate their interest and the rest goes to principal reduction.
shows up clearly on their website and on their monthly statement.
the 'minimum payment due' shows $0 and the 'payment due date' keeps getting pushed further into future.
i figured that it would be a pain to monitor, but it hasn't been. maybe pushing a payment to them using 'bill pay' is the difference?

 

[HangOutdoors]

Please do your research. Interest Cannot be charged or funds allocated to pay such before it is actually earned within the period. They way some lending companies and also how Yamaha Financial does it are playing with a fine line of what is legal and what is not. They are holding your money interest free and applying it toward a future/next payment only after interest has accrued for the next period. Pull out your finance agreement and read through it. Also contact the AG in your state if you find any clauses that seem wrong.

 

[obrien19]

Team,
Hoping someone can provide some help. I am having problems with my loan payment when I overpay the amount stated on the bill. My plan was to pay an extra $100 to pay down the loan quicker. However Yamaha just puts that towards a future payment and not towards principle. I have called multiple times and their customer service is terrible. The basically can't seem to even understand what I am trying to do, it's shocking.

Anyone have the same issue? Any fixes out there?

One of the main reasons I refinanced my loan with my local CU. Basically, what I was able to get out of support, is that every time I'd want to pay extra, I would have to call, make the payment, and explain that I want the extra amount to goto principal. Even with that knowledge, it was always a struggle.

 

[FSH 210 Sport]

just an fyi..that has not been my case with usbank.
i set up 'bill pay' from my bank to usbank an amount way over my loan payment each month. they calculate their interest and the rest goes to principal reduction.
shows up clearly on their website and on their monthly statement.
the 'minimum payment due' shows $0 and the 'payment due date' keeps getting pushed further into future.
i figured that it would be a pain to monitor, but it hasn't been. maybe pushing a payment to them using 'bill pay' is the difference?

I use bill pay. I was told by their corporate office as well as the local bank president that I needed to have a US bank account to make the extra payment towards principal.

It is my understanding if you make a larger than required payment all that is happening is that you are paying on the scheduled payments, ergo, giving them the full amount of interest over the life of the loan. In other words, paying over just pays the schedule of the loan.

Having said that, based on what you have told me I will reinvestigate again just to make sure.

I’m glad you have had positive experiences with US bank.. I have not. It is the biggest collection of no count blundering boobs I have ever encountered.

 

[HangOutdoors]

It is my understanding if you make a larger than required payment all that is happening is that you are paying on the scheduled payments, ergo, giving them the full amount of interest over the life of the loan. In other words, paying over just pays the schedule of the loan.

Right there is the problem. They haven't earned the interest, and they are creating a scenario where you can't reduce the amount of interest you are paying by accelerating the principal. Pretty Shady Stuff! Read the finance agreement and see if there is a clause in it indicating such and what you agreed to.

 

[FSH 210 Sport]

Right there is the problem. They haven't earned the interest, and they are creating a scenario where you can't reduce the amount of interest you are paying by accelerating the principal. Pretty Shady Stuff! Read the finance agreement and see if there is a clause in it indicating such and what you agreed to.

Yep, totally slim shady right there!

As I stated before, I just walk into the local office and lay down a grand each month towards the principal. I will go back and look at the agreement again. Once thing I did make sure was in the agreement when I bought my boat was that there was no early payoff penalty. Once summer is over I will probably up that monthly extra payment to the principal to $2000 and perhaps a bit more if my budget allows it. Depends, the reason I go with low monthly payments over longer term is to be able to make those extra principal payments if my budget allows, otherwise I just pay the minimum and enjoy life. That interest is the cost of using their money…if I can pay off my loan in three years I will have slashed, and I mean slashed the interest rate of 5%.

 

[jimbobalu]

I saw this post and called US Bank and sure enough my overpayments have not been applied to the loan, I got them to apply the past overpayments to the loan and what they told me was to make the minimum payment and then make a separate payment to principal only to ensure it is applied.

 

[FSH 210 Sport]

I saw this post and called US Bank and sure enough my overpayments have not been applied to the loan, I got them to apply the past overpayments to the loan and what they told me was to make the minimum payment and then make a separate payment to principal only to ensure it is applied.

I’m glad to hear that!

Question, do you have your bank accounts with US bank?

See, on my loan payment slip each month there is no space for an extra payment towards principal like I have seen on other loans that I have, like my mortgage for instance.

 

[jimbobalu]

I’m glad to hear that!

Question, do you have your bank accounts with US bank?

See, on my loan payment slip each month there is no space for an extra payment towards principal like I have seen on other loans that I have, like my mortgage for instance.

I don't have any other accounts with US Bank.

I use the android app to make payments, it has the option to pay minimum amount due, full balance, principal only or other. I was doing "other" but was told that was wrong. Pay minimum and then do a separate transaction for "Principal Only".

 

[FSH 210 Sport]

I don't have any other accounts with US Bank.

I use the android app to make payments, it has the option to pay minimum amount due, full balance, principal only or other. I was doing "other" but was told that was wrong. Pay minimum and then do a separate transaction for "Principal Only".

thanks!

 

[suke]

Yamaha financial is actually US Bank underneath? Will admit I only skimmed through this thread.

 

[flyingnugget]

Thanks for this thread... Yup, just went through this issue with Yamaha financial. What a disaster of a system.

Paying minimum amount and making separate additional payments on my own each month. Ridiculous.

 

[HangOutdoors]

Yamaha Financial is Garbage for the most part. There teaser rates get people to buy in. Their workflow, calcuations, etc. are not great.

 

[suke]

Thanks for this thread... Yup, just went through this issue with Yamaha financial. What a disaster of a system.

Paying minimum amount and making separate additional payments on my own each month. Ridiculous.

How did you manage to do that? I probably should have looked into this back in 2022. I imagine I've been paying payments forward for years with extra amounts paid! Doh!

 

[flyingnugget]

Yeah, Not to be a conspiracy person but I swear they make this more complicated than needs to be so you cant take advantage of the interest rates and not pay more so it drags out the loan as long as possible.

 

[flyingnugget]

How did you manage to do that? I probably should have looked into this back in 2022. I imagine I've been paying payments forward for years with extra amounts paid! Doh!

So how the person told me is to have the Auto draft set up for the min payment. Let it draft every month, when and how much you have set up.
Then you go back on your own and "make a payment" and that is what goes towards principle. You have to do the "make a payment" on your own every month.

If you dont do it that way, any over payment amount you have goes towards the future auto draft amount.