A surprise from bank over car loan
Reader thinks next payment is the last, then learns otherwise.
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.