The bank I hold my car loan with was bought out by another bank. The original bank gave me the option to take a month off paying my loan several times during the course of my loan due to my excellent credit history. I accepted this offer two times under my old bank.
The new bank told me that they do not allow this practice and that I have to pay the two payments that I missed before along with this month's payment. They told me that will start charging me late fees each month until I am caught up. Is this legal?
The new holder of your loan cannot cancel previously agreed upon modifications such as the extensions you took. In those instances you will have paid the interest that was due for that period and perhaps even a fee for the extension. These are done in accordance with state laws. They bought that loan as it was.
Call the bank, ask for a supervisor, explain that the prior bank and you agreed to the modifications and you either paid the agreed upon fees or fees were added to the end of your loan. If they do not agree that your maturity date was extended, ask who their regulator is and how to contact them. Next, you contact that regulator and explain your position.
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The new holder of your loan cannot cancel previously agreed upon modifications such as the extensions you took. In those instances you will have paid the interest that was due for that period and perhaps even a fee for the extension. These are done in accordance with state laws. They bought that loan as it was.