A surprise from bank over car loan

DEAR HARRY: In the fall of 2010, we bought our first new car after several used ones (I don't like the word pre-owned).

We took a loan for 36 months, for which the last payment is due next month. We were notified that despite the original 36 payments, we still owe $7,100. I could not believe my eyes when I saw that letter.

I called the bank that issued the loan and was referred to a new bank that took over the loan about a year ago. Neither could explain what happened. Neither called back after promising to do so.

I looked over all our agreements with the bank and the dealer, and everything indicates that I will owe nothing after my next payment.

I have no record of anyone adding charges to my payments or my balance.

I am worried about my credit report as well as this stiff payment that I don't owe. Help!

WHAT HARRY SAYS: My guess is that an error crept into your loan at the time of the transfer between banks.

Ask the people at the new bank for a detailed statement of your account. That should show when the error was made.

There is another possibility: Are you sure you did not lease the car, rather than buy it? If so, the $7,100 may be what you owe to purchase the car at the end of the lease.

You would not be the first person to have made this mistake.