Expert: Richard Hixenbaugh - 4/15/2010

Question
Mr. Hixenbaugh- I really hope you can help me out here. When I was 21, I purchased a car, too young and immature to have done so. Went in and signed all contracts etc. I was not aware that I needed to send the loan company a copy of my insurance at the time. I got the car in April and got insurance on it the day before. It DID lapse in June though, due to my stupidity basically. I was never aware that they placed a policy on my account from April 2005- April 2006 and they still havent properly credited me for part of the time that I did have insurance. I wasn't aware they placed this policy until a year and a half later checking my pay-off balance. When I signed all loan documents, no where in the documents did I sign agreeing to a placement of their insurance of something happened to mine. I have thoroughly looked this over. Now, in addition to this being on my loan, there is an additional 4,000+ dollars that they can't explain to me. My balance currently is 11,205.00 and it should be, just over 6, even with the policy and interested etc. and without the forced insurance, I would have my car paid off in October of this year. I am just so dissapointed. When I plead with them to give me all statements from 2005 till now to see what they are doing to my loan, they keep putting me off telling me how expensive it's going to be to give me those documents and that it will take 8-10 man hours to do so and to give them payment first. What do I do? They are also telling me I am a payment behind because one payment was 3 dollars less that it should have been and that "didn't count as a payment". I have multiple sclerosis and go through distress with them monthly to try and get my situation worked out and keep good credit for the most part and they refuse to help me.I have them curse at me and tell me to shut my mouth when I am trying to get answers. I ask for a manager and there is never one available. I cannot go in the bank simply because I no longer live In Houston. I am still in Texas mind you. What do you suggest I do. I am looking forward to hearing from you.

Answer
Hi Danni,

I'm sorry you are going through this.

In ALL auto finance contracts there is a clas that requires you to maintain Collision & Comprehensive coverage on your vehicle or they will purchase it for you and add it to your loan. I know you said you could not find it but it is surely there somewhere.

As far as the balance discrepancy, they should be able to provide you with a print out of all activity on your account. It does not take 8 - 10 man hours, it only takes running an account activity report which is the push of a button. I would suggest that you send them a letter demanding that they provide you with this account activity report (by certified mail/return receipt requested). In your letter demand a response with in 15 days. If you do not get a response or your report, then you will need to contact the government office in Texas that regulates banks and finance companies to file a formal complaint. They should be able to get you the information you want.

I hope this helps
Richard Hixenbaugh