I shouldn't owe you money!

United States
March 4, 2017 7:10am CST
I'm really frustrated at the company that holds my auto loan. We had two cars through them, we've had both cars for about a year. Back in October my husband decided to give his car to our son, and hubby went and got a new car. Our son was to take over the payments on hubby's car. In November my son totaled the car we'd just given him. In December I made the car payment as scheduled because the insurance hadn't sent in the payoff check yet, and I didn't want a late payment as the loan was in mine and hubby's names. I do not want a black mark on my credit report. We just found out this month that we still owe money on that car.. and I can't figure out why. I can see in the transaction history that after I made December's payment, we got a refund from our warranty and that paid another $500 on the car loan. Then in January the insurance company sent the payoff amount. We also had Gap insurance which should have paid the remainder of the loan. Hubby called the company and they started saying something about we had missed a payment so X amount had to go to catching us up... We never missed a payment and they got 2 payments in December, one from me and one from our warranty reimbursement. Then they said the Gap insurance loses value over time, so instead of covering the full amount of what was left over, it only covered about $300. In the end we owed about $140, which isn't much, and it pays the car off.. but I'm ticked that I owe anything at all! What's the sense of having Gap insurance if it isn't going to cover every dime of what's owed after a car is totaled?? I also see in our payment history that the transactions from the warranty and insurance were applied, then reversed, then reapplied later. I'm sure this added to the finance charges we had to pay.. Had they not reversed those payments I'm sure the vehicle would have been totally paid off. But they didn't want to give us any straight answers as to why we still had a balance left on the car. Probably just a ploy to get more money out of us.. As if the fact that I have a really high interest rate on my van isn't good enough for them to get money from us!! I really wish I could refinance my van with someone else and not have to pay this company another dime as they're so infuriating! Unfortunately when I try to refinance the van I'm told I owe too much on it.. which is due to purchasing the extended warranty, and the fact that I do have a high interest rate so I'm not paying the principal down enough each month (it was our first auto loan in like 20 years! Our credit wasn't really great when we got it). The payment is pretty high so I can't really afford to put anything extra on it to get it paid down faster.. otherwise I would as I know that would save me over time..
8 people like this
9 responses
@fishtiger58 (30304)
• Momence, Illinois
4 Mar
Wow that's just awful. It's like the have a license to steal. And steal they do.That reversal thing I believe was a ploy to squeeze even more money out of you. I hope you can get this all straightened out. A straight answer from an insurance company is much like pulling teeth.
3 people like this
• United States
4 Mar
It's the auto financing company we're fighting with, not the insurance company. The insurance company did their part and sent the check..
2 people like this
@fishtiger58 (30304)
• Momence, Illinois
4 Mar
@katsmeow1213 Yup you were I misread. About the gap insurance, I have never heard of that type of insurance. We haven't had an auto loan in 15 years
• United States
4 Mar
@fishtiger58 It covers the gap in insurance if the car is totaled.. because the insurance company rarely pays off the entire car, so the gap insurance is supposed to take care of the rest. So simply for having gap insurance I shouldn't have to pay them a dime!
1 person likes this
@much2say (34539)
• United States
5 Mar
Argh! I hate that when we sign for some of these things, we are led to believe it is supposed to work for us - and down the road it ends up working against us. I don't know how they get away with squeezing every bit of money they can from people - something very strange about that - but they do. What a frustrating situation!!
1 person likes this
• United States
5 Mar
Yeah, and sadly they can get away with it! As a consumer I don't even know where to turn to try to get help with this, except possibly the BBB.
1 person likes this
@much2say (34539)
• United States
6 Mar
@katsmeow1213 I'm not sure who to turn to either. We have this financial guy we deal with . . . he sort of explains all the mumbo jumbo for us . . . he even says these companies make things confusing on purpose so people just put their hands in the air and end up paying. I hate all this misleading stuff.
• United States
6 Mar
@much2say Yep, I can totally see that. I have it paid so I don't get any penalties.. I just want to hurry up and pay my van down enough to refinance it so I don't have to use this company anymore!
1 person likes this
@DianneN (57247)
• United States
4 Mar
Something sounds very fishy about that company. My husband would be on the phone until it was straightened out.
1 person likes this
• United States
4 Mar
He tried, but he was already frustrated.. he had tried for 3 days to get a hold of somebody. When he finally did all they told him was that we had missed payments which was not true. Then he spoke to a supervisor.. He was so frustrated all he was able to tell me about the rest of the conversation was that he made some threats before hanging up on the person. Maybe I should have handled it, but I don't understand it all so I don't think I'd have been much help!
1 person likes this
@DianneN (57247)
• United States
4 Mar
@katsmeow1213 Not my thing, too. So sorry for your frustration and extra expense.
@Namelesss (1000)
• United States
4 Mar
And sadly they will likely put in a mark against your credit as well, lowering your score. Not fair the way they do this but sounds like you have checked everything and done everything you can do.
1 person likes this
• United States
4 Mar
I took care of the charges because it didn't seem there was any other option.. but I'm not happy about it!
• United States
10 Mar
Ah that is the sad side of having insurance and then supplement insurance for when an accident such as complete wreck, happens. So sorry you had to pay anything at all but I am guessing if enough people keep complaining about these sort of hiccups in the distribution of funds for totaled cars in the automotive insurance business, the rates and performance improve @katsmeow1213
• United States
10 Mar
It's not the insurance company.. they did their part. This is the financing company which we were purchasing our car from.
1 person likes this
• United States
10 Mar
@katsmeow1213 and apparently then the financing company did not do their part, what a shame
@GardenGerty (90157)
• Marion, Kansas
11 Mar
These insurance companies get you coming and going. I am paying on a vehicle we still owe on, paying for comprehensive insurance. It dropped the drive shaft and rear differential and insurance paid nothing but towing. I am not a happy camper. It sits in our driveway, fully insured, and immovable, unless we spend about $5000, IF the dealership can find the right parts, but they are not sure they can. We will pay it off and then part it out I am afraid. Rear tires have sixty miles on them.
• United States
12 Mar
Insurance here doesn't cover those types of repairs, only collisions.. and depending on the type of insurance you have it may not cover your repairs after a collision.. but it is required to cover the other person's repairs if you're at fault.
9 Mar
i hate all the car expenses ou there! that sounds like a big ol' extra hassle! i'd be annoyed too
• United States
9 Mar
Nobody wants to make it easier on the little guys because they're only concerned with fattening their own wallets!
1 person likes this
@LoriAMoore (9660)
• United States
5 Mar
That's messed up!
• Jacksonville, Florida
4 Mar
That's sad that they can get away with this. They should have to give you an answer and it should have been paid off already-some companies will keep taking as long as they can.