Why am I being charged $20 on my 0% loan?

[RollingsFarms]

I have a 0% for 60 months loan with Kubota and I'm paid up through November. I notice on my bill it says "good through August 18" but the next payment isn't due until December. The problem is they add $20 to my balance of the loan every month in the middle of the month if I don't make a payment that month. I'm not behind on any payments, I'm actually way ahead, but sometimes I'll skip a month but it charges me $20. Is anyone else noticing this on their loan with Kubota? I emailed KCC but they said they couldn't answer my question, I needed to call. I called but got tired of being on hold for 15 mins so I thought I'd come ask here. Is this a secret finance charge or what?

 

[rustyshakelford]

Is that what they charge for KTAC or was it broken down into 60 payments and added to the total?

Brett

 

[kthompson]

Not sure here but some companies will charge if you are ahead of what is due but will charge if you do not make a monthly payment, can not tell you the reasoning with that. I would say you need to find out if that is being reported negatively on your credit.

 

[RollingsFarms]

Well, I had a balance of $9300. Then August 18 came and the balance increased by $20, however my next payment isn't due until December. I have had 0% loans through John Deere and others and have never had this happen before. I'm just not sure what "good through" means when there's another section that says "next scheduled payment" in December. Another weird thing is if I pay extra, it doesn't take off for the next payment. Say my payment is $264 but I pay $300. Every other 0% loan I've had would take that extra and deduct it from the next payment. Kubota doesn't do that.

 

[John Fitzgerald]

It's probably a penalty for no payment that month.

 

[RickB]

Seems like you are paying for that free lunch. Did you read your loan agreement?

 

[coldsteelva]

Could be an installment fee, could be a KTAC fee; Good Through would usually be used in conjunction with a loan payoff amount (if there was actual interest) so if your payment was received by the good through date, no additional interest would accrue. It's a puzzle and you're likely going to have to plug the ol' cell phone in and put it on speaker and wait out the on-hold music.

 

[George2615]

Even though you are paid in advance thru Dec. it is possible that the kubota loan program doesn't realize you are paid ahead and since their computer program doesn't see a payment received each month it adds $20. Maybe a glitch in their program.

 

[WM75Guy]

I looked at my contract. In one section it states you can prepay a payment anytime before it is due without penalty, i.e. no early payoff penalty. In another you have to make at least one payment every month. So it seems making 2 payments this month doesn't allow you to skip next month. For my contract the late fee for more than 10 days late is 5% of the installment or $5, whichever is less.

 

[BumperB]

On my Cub Cadet zero interest loan, I have to make a payment each billing cycle regardless. If I make 2 payments this month, I still have to make a payment during next month's billing period. I made 2 payments one billing cycle. The second payment was meant to be for the next billing cycle but I paid it 2 days too early and they charged me $35 for missing a payment when I was actually early. I called Cub Cadet and they removed the $35 fee as long as I agreed to make an additional payment.

My John Deere dealer told me the same thing for my JD Financial loan. He said I could prepay anytime I want but I had to make the minimum payment each billing cycle.

I'm sure it is the same situation for you.