Currently have a 767 credit score. I've worked my a$$ off to get where I am. And I've been in good standing for 20 years. I'm in anger and panic mode, and need some advice.
I purchased a van in January 2019 using the TD Auto Finance which the dealership selected for me, they beat my credit unions. I also added gap insurance for $799.00, which is also offered and financed through TD Auto Finance, I was told it could be cancelled at anytime.
When I took delivery of the van, I had spoken to the finance officer and said I'd like to have the gap insurance removed, since my insurance company includes gap insurance for all vehicles under their policy. Finance officer said no problem, just have to send cancellation form to TD bank, and you sould see reflection on your 1st, possibly your 2nd statement.
So my first paper statement comes in Febuary, $344.66. I pay it early.
My 2nd statement comes in, and says Balance due $0.00. Looking at all the numbers it looks like they applied the refund of the $799.00, towards the monthly payment which is why I have a due balance of $0.
My 3rd paper statement comes in and again shows $0 dollars due. Still shows the $799.00 credit being used.
May's paper statement comes, and says I owe $240.98. Which looks like its a prorated payment due to the $799 not being able to cover 3 months completely. (The math makes sense, 346.66+346.66+240.98 = 799.00). I pay the $240.98.
June's paper statement comes in, says $346.66. Ok looks like my monthly payments have returned to the original agreed amount, and the 799 refund has been used up. Cool. I login to pay, and boom, my account says its 81 days past due and I owe $814, I missed March and April payments. I look at the payment history online, and all of a sudden everything had been readjusted, 799 had been refunded to the principal balance instead of showing that it was applied to the monthly payments before.
I call them up, they tell me billing statements we mail to you are not accurate. You keep them for your record, but other than that they don't show you what you actually owe. I blew up. They told me my account had already been reported for 30 days late, and 60 days late, and about to be reported for 90 days if I dont pay.
So I asked them, why wasn't I notified at all? Calls? Emails? Letters?
..."We don't call, unless we got notified by the system, that your account is past due, and in this case we didn't know until June, after you had called us and asked about it". In other words, you follow what the system says so that it shows you account is in good standing, but when it gets to my hand, they are innacurate? It's ok for you to use them not to call me, but it's not OK for me to accept that it says I owe 0?
Where was the call to tell me that the 799.00 went towards pricipal? Absolutely no one reached out to me at all, about anything.
I've been left in the dark through all of this, only to be given a "Oh well, too bad".
Am I SOL? Should I combat this with the beaureaus? My credit score has NOT been affected yet, but I'm dreading the moment that it does.
I would file a complaint with the Consumer Finance Protection Bureau if they don't agree to remove those lates. Keep all of your documentation and submit it with your complaint. Explain the situation in full detail and I will bet you that TD will correct this situation. I have had to file complaints twice for me and once for my wife and all three times the creditor immediatly reversed their actions. CFPB has been gutted in many ways by the administration so it may be different now but it would be worth the effort. Otherwise you are probably stuck with these serious delinquencies. It is clear that they misapplied the 799 towards payments instead of principle and then corrected the situation leading to your problem. I have had the same thing happen years ago but fortunately I just kept making my regular payment because I was paranoid that what happened to you might happen to me.