Question on Auto Loan

[mdw2006]

We will (or would) have our truck paid off this month, but 2 months or so ago the CU added insurance to our loan. Right when this happened I called them and told them I was covered those dates they say I wasnt, of course they needed my insurance to send them a binder, which I called my insurance and they faxed what info they needed, made my payment for that month. They said the refund takes 4 to 6 weeks. Okay no problem time the refund is there I will be making my last payment.

 

Well still no refund as of yesterday, my insurance has faxed them 3 times and I have taken a copy twice and did again yesterday, of course they say yes you dont owe the $300 dollars that was added on there.

 

Well I cant "pay off" my truck till the refund is issued, so now I have to wait another month or more? I cant afford to pay an extra 300 which they say is the only way to pay off the truck, plus I am getting charged interest on that 300 they added, shouldnt some interest be wrote off say from when they first added it? Or cant figure out what my pay off is (I know that is left to pay but I guess there is always interest to add on) minus the 300 or am I SOL.

 

TIA

[mk_378]

If you really were covered by your insurance the whole time, they can't charge you anything. No interest either. I'd tell them that I'll be making the last payment(s) according to the original schedule and expecting a clear title in the mail.

[mdw2006]

Okay for example

 

$300 was added on right near the end of August.

 

Had Augusts then September payments ($341.00) Octobers is right around $250.00 I was going to pay it off before the end of the month.

 

1. Would the interest be higher or more since $300.00 was added in August, because this $300 made my loan showing I owed $300 more then I do.

 

2. They say I have to pay the $250.00 plus $300.00 plus what interest to date to pay in full to get the title.

 

I was covered no doubt about it the CU evan says yes you where covered not sure why insurance was added.

[mk_378]

They cannot sell you duplicate insurance. Duplicate insurance has absolutely no value, as the third-party insurance that you had bought previously and kept in force continuously would've paid for any loss. Thus their insurance company didn't actually risk any money by "covering" the car during that time. Their insurance company needs to give all the premiums back to the CU. And since the whole thing was a mistake by the CU they need to eat the "interest" as well.

[mdw2006]

Okay I will let them know that and see what happens.

 

ETA: This loan the interest is accrued daily so they need to go back to the day it was added and only do interest on the amount owing at that time.

 

so say I owed $900.00 back in August interest only on that amount not $1200.00 after they added insurance?

Edited October 20, 2009 by mdw2006

[MarvBear]

Provided there was actually no lapse in coverage AND you can prove it, to your lenders satisfaction, then it should be obvious that you should proceed as though there were never any aditional charges.

 

In the meantime, it would probably be wise to ensure that until the mess is cleared up, that you credit union does not report any late payments.

[mdw2006]

Provided there was actually no lapse in coverage AND you can prove it, to your lenders satisfaction, then it should be obvious that you should proceed as though there were never any aditional charges.

 

In the meantime, it would probably be wise to ensure that until the mess is cleared up, that you credit union does not report any late payments.

 

 

Oh I can prove it and no lapse AT ALL they said I had no coverage from 05-23 to like 08-23 the form my insurance gave me to give them says I have had coverage since 04-23 to current, my insurance is peeved too because they said they have sent them the douments three times.

 

Oct payment isnt due till 10-31 but I was going to pay early, but according to the CU I have pay the extra $300 and if I dont want to I have to wait till they get the refund to get my title. Do I need to ask about interest being more since the $300 was added or does that not matter.

 

I have no lates with them well my truck loan shows in my negative due to a 60 day late in 07-06 otherwise from 01-2004 to 05-06 was all on time and since 07-06 all has been on time. Sucks its shows negative on my report.

[MarvBear]

Obviously you are dealing with two different companies. #1 your credit union, and #2 the insurance company the credit union uses to put forced placed insurance for their protection.

 

I'd be very curious what triggered that from the credit unions standpoint. They don't just do that out of the blue.

 

I'd also imagine that your APR for this alleged charge of $300, would be negligible, but would probably be credited once the credit union and the insurance company issue/apply credit appropriately.

[mdw2006]

Obviously you are dealing with two different companies. #1 your credit union, and #2 the insurance company the credit union uses to put forced placed insurance for their protection.

 

I'd be very curious what triggered that from the credit unions standpoint. They don't just do that out of the blue.

 

I'd also imagine that your APR for this alleged charge of $300, would be negligible, but would probably be credited once the credit union and the insurance company issue/apply credit appropriately.

 

 

Its company called VSI that I guess the CU adds if you dont have coverage, I never got a notice they did it tell after then I got a letter saying they added the $300 no notice saying we dont show you have coverage please bring proof.

 

CU says my insurance didnt send the info so they assumed I didnt have coverage, but my insurance says they sent them the binder they day I was signed up...I use Farmers they usually are good about that stuff.

 

I will see if they will figure out my pay off minus the $300, I hate to wait another month for the title, they said the refund can take 3 to 6 weeks to get.

Edited October 21, 2009 by mdw2006

[MarvBear]

It's all called VSI. Stands for Vendors Single Interest, Protects the vendor not you.

 

Best of luck with your credit, really should not be a problem.

[mdw2006]

It's all called VSI. Stands for Vendors Single Interest, Protects the vendor not you.

 

Best of luck with your credit, really should not be a problem.

 

 

Yes that is it, I will go in today and ask them to give me the pay off amount minus the $300.00 we will see what happens.

 

Thanks Marv! One almost paid off, the other in about 6 months.

Edited October 21, 2009 by mdw2006

[mk_378]

It's unbelievably expensive insurance when you consider that all it does in a total loss is give the CU enough to pay off the loan, which was almost paid off anyway.

[mdw2006]

It's unbelievably expensive insurance when you consider that all it does in a total loss is give the CU enough to pay off the loan, which was almost paid off anyway.

 

Yep it is, They have done this to me 3 times thru five year loan, the other 3 times it would raise my payment, but of course I had coverage so they got a refund put on my loan and my payment would be where it was at before, this last time it didnt maybe because I only had 3 more payments.

 

Maybe its the CU way of getting a little extra interest while that extra money is added to my loan.

Edited October 21, 2009 by mdw2006

[mdw2006]

Well heard from the CU and they did give me the payoff amount minus the $300, they say it will take about 10 days to get the title something about it being paperless?

[MarvBear]

Well heard from the CU and they did give me the payoff amount minus the $300, they say it will take about 10 days to get the title something about it being paperless?

 

 

Yeah, you must be in an ELT state.

 

Like Florida.

[mdw2006]

THIS SUCKS!

 

I go in last week pay off the dodge (what the total payoff is minus what VSI is to refund them back) they say you will get the title 7 to 10 days.

 

I call to check its been 7 days, just to see if they can tell when it went out.

 

 

Nope they wont release it till VSI does a refund or I pay it and then they can refund me.

 

So now I have to wait who know how long.

[MarvBear]

If the title is paperless, you still aren't going to get a title. You'll probably need to take the lein release and go to your local DMV office and have them print you one up, if you prefer it no longer be a paperless title. Which is actually pointless. Once the lien has electronically been released, it is all yours. Good luck.

[mdw2006]

If the title is paperless, you still aren't going to get a title. You'll probably need to take the lein release and go to your local DMV office and have them print you one up, if you prefer it no longer be a paperless title. Which is actually pointless. Once the lien has electronically been released, it is all yours. Good luck.

 

 

They say its paperless but they order it and mail it to me or I assume its the lein relase they mail?

Edited October 29, 2009 by mdw2006

[MarvBear]

I dunno how your lender in your state handles it.

 

They usually just electronically release the lien and thats it.

 

I wouldn't think they would pay the fee to actually print a paper title, but I'm not familiar with their processes.

[mk_378]

Electronic means the bank just logs into their account with the DMV and removes the lien. No paper is mailed anywhere. You can go to the DMV and ask if your truck still has a lien on it.

 

They're doing very bad business by continuing to punish you for their mistake. But if you're not planning to sell or trade in the near future it isn't hurting you any.

[mdw2006]

Electronic means the bank just logs into their account with the DMV and removes the lien. No paper is mailed anywhere. You can go to the DMV and ask if your truck still has a lien on it.

 

They're doing very bad business by continuing to punish you for their mistake. But if you're not planning to sell or trade in the near future it isn't hurting you any.

 

no, no plans to trade in at the moment, just frustating that we cant get the title due to their error, thankd for the info on the DMV, they never told me about that, they said it would be mailed, but its paperless.

[mdw2006]

VSI did a partial refund should have refunded it all, they will but that can take another two weeks or more

 

Now they refunded everything but $77.00 of course the CU says the best thing to do is pay the $77.00 off and when they get the refund they will get it to me.

 

I dont know what to do, I could pay the $77.00 I know its not much to pay.

 

I did ask how I get the title and they said its paperless and once the $77.00 is paid they will release it but they dont know what happens from there

 

sigh

Edited November 4, 2009 by mdw2006

[MarvBear]

you usually just get a letter on your state dmv letterhead with a barcode across it that say you title is electronically held.

 

If you want, when you get that, then you can take that letter/release etc and go stand in line at the local DMV office and pay the fee to have them print out the title on the spot, if it is more comforting to you to have that odd multicolored document.

 

Your ownership is easy to verify with your local DMV or if you decide to trade the vehicle you don't need the title since you are in an ELT title state.

 

Any dealer with a CVR account can tell the title is paperless and whether or not there is a lien.

 

http://www.cvrreg.com/

[ladyran]

send them a letter demanding your title or a complete refund of all monies paid since they are in breach of contract...

[mdw2006]

you usually just get a letter on your state dmv letterhead with a barcode across it that say you title is electronically held.

 

If you want, when you get that, then you can take that letter/release etc and go stand in line at the local DMV office and pay the fee to have them print out the title on the spot, if it is more comforting to you to have that odd multicolored document.

 

Your ownership is easy to verify with your local DMV or if you decide to trade the vehicle you don't need the title since you are in an ELT title state.

 

Any dealer with a CVR account can tell the title is paperless and whether or not there is a lien.

 

http://www.cvrreg.com/

 

ah okay, dh I guess feels better "seeing" a title but he might be okay with what the DMV sends.