AboutMike Weikle Expertise Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White
Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability
Experience Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.
Education/Credentials Certified Public Accountant;
JD -- West Virginia College of Law - Order of the Coif
Data Processing Training Old Dominion Bank and IBM
Question Our car loan to Wachovia Dealer Services was due on 3/13. We couldn't pay then, but mailed 52% of the payment on 4/8 via check. The check was cashed on 4/10. We then mailed the remaining 48% of the payment due on 4/16, but were informed that day that the bank would not accept the payment and insisted on obtaining a direct bank transfer because the payment was more than 30 days past due. Can they legally do this? We also tried to make a payment on their website, but were not permitted to do so, and we also cannot make a payment at any Wachovia bank branch because apparently their auto finance division is separate. Can they legally refuse our payment, even if our account has not gone to collections? For future reference, we are wondering what the best way to pay them is? We ended up putting a stop payment on the check (which cost $29 from our bank) and paying them by direct bank transfer as they insisted, but are now worried what will happen when/if they try to cash the check and it is refused. In case they try to cash the check (even though they said they would not accept it) can they hit us with additional penalties or fees because our check was not honored by the bank? I'm just wondering what our liabilities are. Thanks!
Answer Are you aware Wachovia Bank was recently bought by the Bank of America? In my opinion it is shameful that a bank that has asked for and accepted billions of dollars in taxpayer bailout money would treat its small loan customers (taxpayers whose taxes are being used to bail them out)in such a heavy handed, if not mean spirited manner.
As to your question: Generally the Bank's rights are spelled out in the loan agreement. Do you have a copy of the loan agreement. If so, does it clearly state the bank has the right to refuse to accept a partial payment when it has already accepted part of that same payment. I doubt the loan agreement is that clear. Also, have you ever made partial payments that were accepted in the past. If so, they may have waived their right to refuse to accept a partial payment.
I don't know where you live, but there may be an attorney in your area who might agree to assist you in making a claim the bank is acting in bad faith by its total disregard of your financial interests (making you spend money you don't have to get them to accept a payment) while at the same time they are asking the taxpayers to provide billions of dollars to assist the bank.
The best way to pay them in the future would be by having them charge your checking account directly each month. The downside here is that if you do not have the money in the Bank when the payment debit from Bank of America reaches your bank, it will be as if you paid with a bad check and you will incur late payment charges and additional returned check fees.
You could set up an Internet payment service through your bank (at this time most banks are not charging for this Internet bill payment service) and have a payment sent on the same date each month. If the money is not in the account, no payment will be sent. You will incur a late payment fee, but not a returned check charge.
If you are having trouble making the payment, go in to the bank and ask them (put it in writing) for a interest rate reduction or extended payments. Put them to the test and see if they are willing to use any of the billions of dollars they received in bailout funds to assist you, the tax payer whose funds they received. They probably will not, but it will show you tried to work things out and with all the billions of dollars they have received in taxpayer bailout funds, they refused to give you any helped. I think this would make a great argument for a jury. Whatever they agree to do, make sure you get it writing (refusal to re-work (extend payment) or agreement to extend payments without raising and possibly lowering the interest rate).
You should also call your state attorney general and ask for the consumer protection division and tell them what is going on. They may be able to help you directly with the bank or assist you in finding an attorney that will assist you.
I wish you the best and hope the Bank will rethink its behavior and give you a break. You are not asking for a bailout, only a small break.
