Does Genesis Finance Calculate Automatic Payments Incorrectly?

[DGV80]

I'm hoping someone better at math than me can determine whether Genesis Finance is incorrectly charging me interest (and likely several thousand other customers) via their automatic payment solution.

After 6+ months, hours of waiting on hold, 3 clueless international customer service reps, 1 US-based "corporate" rep who did not offer a solution... I'm at my wit's end. Assuming others have or currently are experiencing something similar, I'm compelled to take legal action and/or report this to the Consumer Financial Protection Bureau (CFPB).

THE FACTS
Purchase Vehicle: 2023 Genesis GV80 (New)
Purchase Date: 5/24/2023
Total Purchased Finance Amount: $74,226.13
APR Interest Rate: 4.49%
Financing Length: 60 Months
Monthly Payment: $1,385.84
First Payment Due Date: 7/8/2023

(I'll preface that all the information above was corroborated with Genesis Finance, so there isn't a possibility of the dates, amounts, etc. being factually incorrect)

THE PAYMENTS
See below. This is directly from Genesis Finance's website.


THE ISSUES

1. AutoPay Setup Took Effective Date and not Payment Due Date. I set up AutoPay online on 5/31/2023. This was seven (7) days after I purchased my vehicle (5/24/2023). The verbiage on the website must have been confusing, and thus my first automatic payment, which was intended to be taken on the first payment due date of 7/8/2023, was taken on 5/31/2023 (the day I set up AutoPay). This part was frustrating, but not the end of the world. Note the amount that was applied to the principal + interest.
2. A $1,000 Principal-Only Payment was not applied to the Principal. On the same day as AutoPay was set up, I submitted a one-time principal-only payment of $1,000.00 to be withdrawn on 6/1/2023. This payment was taken but was subject to an interest charge (as seen above). I called Genesis on 6/7/2023, and they said the payment would be fixed before the next automatic payment (it hasn't).
3. My third payment (on 7/24/2023) was overcharged interest. The payment amount of $1,385.84 was taken, but $468.85 was applied to interest. I've tried calculating using daily interest ($9.13 based on the fully financed amount of $74,226.13) and in any situation, I cannot A) reproduce how they got to $468.85 in interest, or B) why this figure is so high. I received several workarounds for months, and after finally getting through to someone at corporate on 12/21/2023 and 1/3/2024, they said it was due to the fact I made early payments, and technically that carried "penalties" via interest. I was too flabbergasted to continue listening to their corporate jargon, but the gist was that I should not have made early payments. How irresponsible of me.
4. No breakout of principal + interest allocation on statements. As I'm sure several of you are aware, there is no breakout between principal + interest on Genesis Finance statements. This is ludicrous for a company of this size to not offer this transparency to customers.

I can't imagine I'm being singled out on this issue and expect other responsible purchasers to experience something similar. As is noted throughout several threads, their customer service is reason enough for me to not purchase another Genesis in the future.

Please share if you've had a similar experience, or whether you have any math to support or refute my claim. Further, I implore anyone from Genesis Finance who may be reading this to answer directly.

 

[joegr]

...
My third payment (on 7/24/2023) was overcharged interest. The payment amount of $1,385.84 was taken, but $468.85 was applied to interest. I've tried calculating using daily interest ($9.13 based on the fully financed amount of $74,226.13) and in any situation, I cannot A) reproduce how they got to $468.85 in interest, or B) why this figure is so high....

There are 53 days between June 1 and July 24. 53 days x $9.13 would be $483.89, so $468.85 seems right considering that the starting point was only $71,913.

 

[joegr]

Using this interest calculator:

Daily Compound Interest Calculator

Use this calculator to work out your daily interest for a fixed number of days or months. It's useful for bitcoin and other crypto currency trading

www.thecalculatorsite.com

It says the first interest payment should have been $63.94 (you have $63.92, so $0.02 in your favor).
It says $8.97 (matches) for the 2nd
It says $470.36 for the third (you have $468.85, so $1.51 in your favor)
It says $271.24 for the fourth (you have $270.74, so $0.50 in your favor)
It says $266.98 for the fifth (you have $266.49, so $0.49 in your favor)
It says $254.21 for the sixth (you have $253.76, so $0.45 in your favor)
It says $258.38 for the seventh (you have $257.90, so $0.48 in your favor)
It says $245.86 for the eight (you have $245.42, so $0.44 in your favor)

I'd get right on that legal action to force them to take the $3.89 that you owe them.

 

[Hueydriver]

Using this interest calculator:

Daily Compound Interest Calculator

Use this calculator to work out your daily interest for a fixed number of days or months. It's useful for bitcoin and other crypto currency trading

www.thecalculatorsite.com

It says the first interest payment should have been $63.94 (you have $63.92, so $0.02 in your favor).
It says $8.97 (matches) for the 2nd
It says $470.36 for the third (you have $468.85, so $1.51 in your favor)
It says $271.24 for the fourth (you have $270.74, so $0.50 in your favor)
It says $266.98 for the fifth (you have $266.49, so $0.49 in your favor)
It says $254.21 for the sixth (you have $253.76, so $0.45 in your favor)
It says $258.38 for the seventh (you have $257.90, so $0.48 in your favor)
It says $245.86 for the eight (you have $245.42, so $0.44 in your favor)

I'd get right on that legal action to force them to take the $3.89 that you owe them.

Well, he said he wasn't good at math!

 

[EdP]

I'm also upset about how my finance contract is written. It doesn't break out any details about why I was charged $5,000+ over sticker price. There's nothing to explain what extra charges were added or why!

I mean, I paid almost $80,000 for an auto with a sticker that said $72,000 or something like that figure, but nowhere near $80,000.
Margo in TN

That should be in the sales contract. You should have an itemized list of charges. Finance will contain the amount to be financed, terms and interest rate. They should be able to give you an amortization schedule. I did that on a spreadsheet for my mortgage and it showed how much saved if you pre-paid extra every month.

The finance company is just about money. They don't care if you got the premium tires or window tint. Just as your mortgage company does not ask if you upgraded your countertop.

 

[joegr]

...

I've never heard an auto finance company charging someone more interest because they pre-paid their account. ...

They don't, and didn't.
Interest adds every single day. They could either put it on the statement as added first to the principal and then show his extra payment as all principal, or do it the way they did. They way they showed it is the industry standard for showing it. Either way, the amount owed and paid is the same.