Legal Question in Credit and Debt Law in Massachusetts

Re: Addtional Payment Towards Principal Balance On A Loan

They should do what you request.

You probably should have notified them that you were "overpaying" to reduce the balance so they had an alert to make some sort of change to their books, but your failure to notify doesn't really lose you the right to proper credit for your principal payments.

They are not required to lower the amount due each month unless they agree to, but

a) the amount of each payment AFTER you pay down some principle should be split differently, more towards principle and less towards interest. CHECK THOSE NUMBERS. (Hire me if you like, but a good accountant or math major can also help

b) you should be able to get a statement showing either that the payments are scheduled to end much sooner (and a different last payment) and/or that the total principle due has been reduced.

Good for you making extra payments on a car loan. The interest payments get you nowhere in life and it's great to reduce that if you can afford to.

If they won't cooperate (or they seem to let your requests fall through the cracks all the time), contact me directly at [email protected] and

I'll be able to help you get their full attention.