I sold a vehicle to a dealership, we requested payoff from the finance company, the vehicle was paid off, the dealership received the title, later sold the vehicle, etc. I even received a refund from the finance company for $21.56. Two months later, I received a threatening letter stating that the company made an error, title and paid-in-full documentation were sent in error, and that I still owe $2,100. They want title back to a vehicle that I no longer own and want me to pay for their error.
After many discussions, I found out that the finance company credited my warranty refund and, at the same time, accidentally credited someone else's warranty refund to my account too. This error was not discovered until two months later. However, I sold the vehicle, cannot return the title, have financed another vehicle since then and cannot afford to pay this balance, that was caused by their error. And frankly, their threatening tactics are unwarranted considering this is their first attempt at contacting me, I had an excellent payment history, the error is their fault, etc.
The finance company no longer has a lien, I no longer own the vehicle, etc. My account was paid in full and closed. I did nothing wrong or dishonest. They now re-opened my account with the $2100 balance that is already accruing interest. At the very least, I do not want this balance reflected on my credit report because it is not my fault. The title and lien were released. I have documentation reflecting the payoff amount quoted by the company, they did not catch any error prior to releasing the title and sending paid-in-full documentation, in addition to a refund. What are my rights?
After many discussions, I found out that the finance company credited my warranty refund and, at the same time, accidentally credited someone else's warranty refund to my account too. This error was not discovered until two months later. However, I sold the vehicle, cannot return the title, have financed another vehicle since then and cannot afford to pay this balance, that was caused by their error. And frankly, their threatening tactics are unwarranted considering this is their first attempt at contacting me, I had an excellent payment history, the error is their fault, etc.
The finance company no longer has a lien, I no longer own the vehicle, etc. My account was paid in full and closed. I did nothing wrong or dishonest. They now re-opened my account with the $2100 balance that is already accruing interest. At the very least, I do not want this balance reflected on my credit report because it is not my fault. The title and lien were released. I have documentation reflecting the payoff amount quoted by the company, they did not catch any error prior to releasing the title and sending paid-in-full documentation, in addition to a refund. What are my rights?