Expert: Michael Brotherton - 1/26/2009

Question
In August 2006 I bought a 2006 Nissan Maxima and financed it with Nissan Motor Acceptance Corp. On 1/28/08 the car was totaled in an accident. In Feb. 2008 I received a letter from NMAC stating an insurance payment had been received on 2/20/08 but there was still a deficiency balance of $3,815.49 which was due in 30 days.

At the beginning of March 2008 I received my monthly account statement which listed the payoff amount as $3,332.97. The previous payoff amount of $3,815.49 had been reduced because a payment of $520.00 had been made on 2/22/08 after the insurance payment was received. I contacted NMAC to verify the payoff amount of $3,332.97 and informed them full payment would be made by the end of March. On March 27, 2008 NMAC deposited a check for $2,900 and on March 31, 2008 they received an electronic payment of $432.97.

On April 18, 2008 I was contacted by Mr. Davies from NMAC regarding a balance of $3,815.49. He stated no payments had been made on the account since the insurance payment on 2/20/08. I was eventually transferred to his supervisor, Ms. Margaret Venters, who requested I fax her copy of the $2900 check. According to Ms. Venters, she could not locate the $2900 check but the $432.97 payment was applied to my account and then removed and a check had just been mailed to me for this amount. On 4/29/08 $432.97 was electronically deposited back into my checking account from NMAC.

On 5/5/08 I faxed Ms Venters a copy of the $2900 check along with my account statement I received in March.

On June 23, 2008 I received a collection notice from GC Services for $3,811.25.  From GC Services I spoke with and faxed proof of payment and payoff amount to a Ms. Hansen. I agreed to pay the $432.97 which was the amount paid on 3/31/08 but given back to me on 4/29/08 by NMAC. On June 25, 2008 GC Services withdrew the $432.97 from my checking account.

In September 2008 NMAC began reporting a charge off to bad debt of $478. I disputed this in writing with two credit bureaus but the information came back verified. This dropped my credit score by more than 20 points and I need to buy a car soon. I’m at a loss on how to get this corrected.  

Answer
I recommend you send a certified letter to NMAC demanding they correct the account because of their mistakes. They indicateddpayment had not been received when it had and this started the chain of eventts that lead to the charge off.

In your letter inform them that unless they correct the charge off you will be filing a complaint with the state attorney general, the Dept of Commerce, and will be filing suit for damages which is your right in this situation. Keep copies of the letters for future reference.

If you need assistance with this I will be happy to help. This is a service I provide and I have had good results.  Call me at my office at 937 372 8581.