More fun with WF.
Surprisingly I had no issues with WFDS nor did they try to hit me with that collateral insurance program, even deep subprime they treated me righteously and I got the loan I needed while building credit even if I refinanced it less than a year later.
Ah well, better to be lucky than good once again.
I was fortunate enough not to have any issues with WFDS back in 12 either. Already had Insurance, and I sent along the info to them. But I could tell they really wanted to hit me up with their own Insurance by the wording of the notice. None of the lenders since then have ever sent me a letter requiring the policy be sent to them.
I was not a fan of WFDS. I closed out a loan with them last year a couple of years early just to be done with them. They made it impossible online to apply additional payments toward principal; any additional payment simply went toward your next payment and pushed it out farther. In order to apply additional funds to principal, you had to call in to CS after making your payment and have them "redirect" it. They were 50/50 on whether or not they got this right, so often it involved another callback to have them fix their errors. Basically, just too much hoop-jumping for my liking and not customer-friendly at all.
Now that you mention it, i do remember that hassle. I finally just stopped trying to over pay. They obviously knoew what someone was trying to do, and did their best to avoid it. Always applying it to the next insallmant, eben when there was nothing due...
Yup, just a shady business practice that probably > 50% of their customers didn't realize. Sort of a backwards way to force the customer to still pay the same amount of interest when their intent in paying early was to pay less interest.
This is an old thread but I found it interesting. Even though they push your due date out futher the principal interest breakdown still is simple interest. It might state you don't owe a payment for 4 months but as long as you keep paying as much as you can as fast as you can it will still lower the principal and you will end up paying a lot less interest. There is not a need for them to reapply the payment to principal . Any amount paid over the accrued interest amount is what will go to principal. Interest accrued is based soley on the amount of your outstanding balance, interest rate and how many days has passed since a payment was applied.
10k balance @ 10% $2.74 per day in interest. If you wait 30 days to make your next payment $2.74 x 30 is what you are paying in interest and rest takes a bite out of the principal.