Hi folks,
I was able to negotiate a $3,000 right side up settlement on my collision (UIM claim.) The check is on its way to the lender now and the lender tells me it will take 7-10 days to post to my account after they are in reciept of the check. Any over payment will take 35-45 days to release.
I don't have the luxury to go out and buy another vehicle without these funds and I am already without a vehicle for 37 days now.
I MAY try to work a rollover with them but that would be conditional on their new terms (interest rate, etc)
Otherwise... it seems they have me over a barrel at this point and it pretty much sucks...lol. I wouldn't wish what I'm going through on anyone. It's been a month of stress and logistical nightmare already. + I will have some pain and suffering issues I will eventually be able to settle on but for now......
I still don't know exactly how they are going to stick their greedy fingers into my overage on the closing payoff either.
My bottomline question is does this sound normal or legal that they can justify holding up my overage funds for 35-45 days? Just in case I don't want to be forced or locked in to using them as my next lender.
Any help appreciated 
While we are on the subject of bad banking practices. Here is another one I'm dealing with.
My interest clock kept ticking after the point of deemed total loss, the lender was contacted and a payoff number was requested.
Between the time of that and the final settlement offer was negotiated the payoff amount went up another $250 and it is possible a late fee and other fees could be assessed. We are at thier mercy and the original payoff number may have been used in the negotiated settlement which screws the customer.
I.e.-
1. Freeze the Loan
Freezing the loan when the vehicle is declared a total loss will ‘stop the clock’ on the interest accruing on the loan daily. If the loan is not frozen, the credit union will be charging the member for interest on a vehicle that is in process of a payoff settlement and no longer in use. Further, any interest accrued after the date of loss will later need to be ‘backed out’ for accounting purposes. If the unwinding of interest charges occurs after the loan is paid off, the difference will need to be re-allocated into the appropriate GL account. This interest overage re-allocation will appear as a loss, even though it’s only figurative, it bears an additional accounting explanation. Fundamentally, this administrative timing choice presents the question: Should we be requiring our members to pay an interest charge after being in an accident resulting in a total loss of their vehicle?
https://insurancetrust.us/best-practices-dealing-with-an-auto-loan-after-a-total-loss/
Just some thoughts There are some things that could be better done to help protect the consumer better it would seem.
@Gladius wrote:Why does it take 35-45 days to release the overpayment? That seems extreme to me, but I guess every lender has it's own schedule. I recently went through a total loss with a right side up settlement due (around $2500) and it took maybe "only" 5 days for me to get the check from my insurance company (USAA) after the lender was paid off. It took maybe 2-3 days for it to post to account with a balance due of $0. I had actually already went out and purchased another vehicle during this time since my insurance would only cover my loaner vehicle for 7 days. I used another lender.
The only other "greedy fingers" tactic would be to deduct the deductable from your payoff settlement.
Hi Gladius,
I have NO idea why it takes them that long. They MAY just be CYAing with that timetine. The insurance company wrote the total check directly to the lender. 
Now I'm held hostage!
The lender I won't mention by name but they do have an undesirable reputation and bad business model. I will say they had been good to me although I was definately padding thier coffers with high interest rates having to rebuild my credit, which is MUCH better now and should improve more even this month with a couple things i have done.
I will be in a position to shop rates now.
Another issue I'm dealing with which I find unfair across the boards the early payoff closing cost has ticked up another $200 since the vehicle was deemed totaled and they were notified and asked for the payoff number and in between the last payment and next. This puts the early payoff # at costing me $500 + any other costs they decide on a $15,500 note. Does this sound high?
I have a note into them to gripe about that in that they should have frozen the account at that point because that smaller payoff number was the one I used in my valuation negotiations with the insurance company to determine final settlement. And the fact that it just seems unethical and bad business practice to tick the payoff up after negotiations are started & ongoing and the vehicle is unusable.
I may have to sit it out and get the cash unless they want to come to the table and really compete for my business this time
Yeah... messed up. It's been a long stressful haul.
In some ways though, fresh start, gets me out from under those high interest rates. If I can sit it out a little further I'll be in even better shape to go out and beat up on some car salesmen! LOL
If I could get rates in that 8-14% range I would be in heaven! LOL
Anyone think that is possible with scores I posted above. Oh yeah, using experian credit booster (adding some utility bills) Considered somewhat thin credit but excellent payment history, cards will be at 20% or less util. and Cap 1 just increased my limit. Low limit cards $500 (x3 cards) Income/debt should be pretty good.
I know credit unions should be best. I don't want to do any pulls yet because I want all my ducks in a row first. Try the rollover MAYBE first.
@sccredit wrote:Have you tried CapOne Auto Navigator?
Thank You...... I will check it out And I do see there are threads and OP's here regarding.