Finance Questions

Question: Why am I charged finance charge before the bank was out any money?

I was approved for a car loan by a Bank. I took possession of the car let's say on July 1st. The car dealer released the car after signing a backup contract using their own financing.
The Bank sent the dealer the check on July 15 and it was cashed on July 20th. Is it OK for the Bank to effectively backdate my loan to July 1 and charge me interest for the time before the loan check was cashed or even issued? They did.

Answer: The loan starts the day you took possession of the car. You don't get to drive around free for 15 days. Why would you think that? How the bank processes the paperwork (sending/cashing checks) is up to them.

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