An arrear amount has accrued on one of the vehicle finance agreements within our group. Nothing serious. Basically it arises from an interest change calculation that crossed over the payment of an instalment - it is the princely amount of R25.34 and no-one is particularly worried. It will all wash out in the end.

However, today I noticed something that did irk me about that R25.34 arrears - The arrears interest being charged on it. A whopping R1.21 per month! An effective rate of approximately 60% per annum.

So naturally (for me anyway) I simply had to call the finance company to express my surprise.

So I call the Enquiries number and worked my way through the automated selection system. I selected arrear accounts.

A very pleasant lady answered the phone and I gave her the account number.
She advised me that everything is in order with the account.
I drew her attention to the R25.34 arrears amount.
She assured me that this is no problem.
I agreed, but pointed out that this paltry sum was attracting interest of R1.21 per month which was a problem - at least in my eyes. I asked how it was calculated.
She told me it is system generated, so she doesn't know.
I told her that if she would just tell me the location of the computer, I would happily go and kick an explanation out of it. Alternatively, I offered to ask the computer myself if she happened to know its telephone number.

I'm assured I'll get a real live human who will call me and explain the basis of this arrears interest calculation.

So whilst I wait for this call, out of idle curiosity -

Has anyone else got a trivial arrears amount on a finance agreement? And if you can identify the interest on the arrears amount - what are you being charged?