Complaint / review text:
I had a company named Carolina Building to build a run room onto my house in 2010. When they first contacted me about their work, they indicated that the work would be financed and the final company approving the loan was Lendmark Financial.initially, I was given the final price for the job at $21,000.00. I received my payment notice and made the first payment and subsequent payments at $283.12 per month.
After months of on-time payments, I noticed that my balance was not reducing, so I contacted Lendmark to inquire as to why the balance was not being reduced and was told that the interest was computed daily on the loan and that my payments were being applied to the loan based on the daily interest rate. I was not made aware that the interest was computed daily until I made that call. I later began to make multiple monthly payments in an attempt to reduce the amount owed. The question that I have is how can they charge a daily interest rate on a loan? Is this legal and what are my options?