I bought a 2005 Chevy Equinox in 2010.
As is common practice, I provided proof of insurance at time of purchase. My contract says there is no early pay off penalty.
So, I got the pay off online and it is about $600 more that I expected.
So, I called to ask about it today and the bank says there is a $150 early payoff penalty. (when as mentioned above my agreement specifically says there is no early pay off penalty)
And, that they didn't have proof of insurance from the time I bought the car on May 30th 2010 to June 5th 2010. and they're basically charging me $500 for that 7 days. They say the inurance is $189 and there is a $299 charge for having to add insurance - which they can not remove from my account.
Now, I live in GA and we have a week to add new cars to our insurance policy.
I have the insurance cards in the contract packet I make when I buy a new card. I got really lucky because I have the actual cards from Geico that show this vehicle as being covered from April 2010 (before I bought the car on May 30th) to 10-2010. I guess when it is covered they just print the coverage date that matches all my vehicles.
Anyway, I have now spent about 2 hours on the phone, looking through my old Geico receipts (I've changed insurance companies) and it infuriates me because I fell like I have 3 options:
1) pay them the money they say I owe just because they asy I owe it.
2) become their slave and work for free for them doing THEIR paperwork on my account to prove I do not owe the money they say I owe
3) refuse to pay the money and get turned over to the credit bureau
2 Questions:
1) They're saying the sent me a letter that I didn't respond to and they can't remove the $299 charge now.
My first response
a) the dealership (which I have called) says they did provide proof of insurance at the time I purchased the car. (which is always the case in every experiene I've ever had. I don't even think you can buy a car without proof of insurance!)
b) I'm under no legal obligation (that I know of) to respond to anyones letter anyway.
I didn't agree to this charge and I'm not legally bound to pay it and you're not legally allowed to charge me anything just because you sent me a letter.
My question is, am I right? Or can they up and charge me this $299 just because the say so!???
2) Can I sue them in small claims court? This bank is in Tennesee and I live in GA.
I've never done anything like that before but every time I go through this sort of stuff and have to deal with an organization that I feel is intentionally corrupt I want to 1) make the stop behaving like this because I KNOW there are tons of customers who just pay what the bank says they owe 2) I value my time and don't like being forced to work for someone else for free to clear my name just because they're dirty!