The Legal Trap of Daily Compounding Interest vs. US Citizens

Today consumers are being trapped into high interest upside down loans. The legal use of daily compounding interest is being abused by financial institutes and leaving consumers upside down in loans as simple as small auto loans.
If you look at today's daily compounding interest laws it allows a financial institute to charge you the full interest of your loan no matter when you pay it off. So if you tried to refinance you are now upside down in your loan and are now stuck in the high interest loan that you may had to use while cleaning up some past bad decisions in your personal finances.