Citifinancial auto loan
Date: Tue, 10/14/2008 - 20:20
I phoned in to the company (1/08), they pulled the paperwork and agreed that there was a problem and they would have somebody look into it. 60 days later no changes, made another phone about it. Got the same answer...... Phoned in today, got bounced around to 5 different people and disconnected twice.
So here I am almost a year into my loan and my payment is still $10 more than my contract states. That may not seem like much, but a contract is a contract, and over a year or 2's time that is $240 extra. I'm not sure what to do at this point.........
Have you been paying the extra $10 every month? I'll tell you
Have you been paying the extra $10 every month?
I'll tell you what probably happened. The contracts are typed up by the car dealer you bought the car from; then they ship the contract to the lender (Citifinancial), who books it into their system.
Many times, either the dealer made a mistake typing up the contract, or the lender made a data entry error booking it. I will say most of the time it's usually the dealer's fault. For example, the dealer might have mis-calculated the payment amount, but it might actually need to be $10 higher in order for the "Total of Payments" in the TILA box to add up properly. The "Total of Payments" would affect the "Finance Charge", which would affect the "apr" -- every number on that contract affects every other number. Look at your contract and just multiply the stated payment amount X number of payments, and see if it matches the "Total of Payments" box.
When the lender goes to book the deal, generally they should make their computer match what is written on the contract. Now if the dealer screwed up and the contract itself has errors or calculation problems that throw it out of compliance with RegZ, then Citi's computers would be giving off a red alert and probably wouldn't let them book it unless they raised the payment amount into compliance. However, since you didn't actually agree to that payment, they shouldn't just willy-nilly change it.
In my company, when a dealer sends me a contract that has errors, I send it back to the dealer and tell them to have the customer sign a new contract that adds up correctly. Dealers hate that, because they are waiting to get paid while you are already driving around in the car; sometimes dealers can't get ahold of the customer to come in and sign a new contract. So dealers do sometimes alter the contract after-the-fact (which is technically illegal).
In any case, don't call them anymore. Draft a letter stating that the contract you signed called for $X.xx per month. Demand they adjust their system to reflect the contract you agreed to, and enclose a copy. If you have been paying the extra $10/month, then you might ask for a refund or have them apply it toward your next payment. Give a run down of your efforts and what they have said in the past, and tell them if they can't fix the problem, then your next contact with be with the State Dept of Financial Institutions. That should be enough to get them to adjust -- they won't want the state getting involved, because the state would probably write them up for that.
Wow! Thanks for the lesson DebtCruncher. I will definitely rem
Wow! Thanks for the lesson DebtCruncher. I will definitely remember this next time I go buy a new car. If ever.
I have my current car loan with CitiFinancial, the company I originally had it with was purchased by them. Let me tell you, talking to the people in customer service there is a real ordeal. I think talking to a rock would get better and faster results than having to deal with them.
Good advice to put it in writing, I would go so far as to suggest sending it certified mail/return receipt requested also.
