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Compass Bank - Vehicle Loan / Crooked business!

1 United States Review updated:

Compass bank is trying to repossess my vehicle - stating that it is a third party or "straw" loan which they are stating is illegal. The story... while in between jobs and my other vehicle failing me my mother purchased a 2005 Dodge Dakota in her name - I am driving the vehicle and making the payments. There have been numerous times that they've stated my payment was late because I did not put on the check the state the loan originated out of - hence charging me late fees - but the loan number and account number were both on the check. Thinking this was all resolved, I mailed my September and October 2006 payment into the bank - the bank is stating that they will not accept my payments because the payment is not being made by my mother who is their customer. I asked for the payoff on the loan thinking I could go get it refinanced in my name through another creditor considering the hell they've been putting me through. I have been paying $483.93 for the past 13 months - totaling $6291.09. They are telling me that of the $6291.09 my loan amount has been reduced by less than $2000.00???? Please someone help me do the math here!!! Plus, if you are paying a loan off early then you by law do not owe the full financing charges - they are stating I still have to pay the full amount of what interest would be owed if I paid the loan out vs. paying it off early. Compass bank is telling me I owe for a payoff almost the full amount of the original loan. This makes no sense!!! It Is Illegal!! Now, here I am a single mother, trying to make payments on a vehicle that Compass bank is saying they are going to repossess for non-payment (they have two checks they refuse to cash because my mother's name is not on them but yet they've taken 13 other checks just like the two they have over the past year). Compass bank is stating the only way I can keep the vehicle is by paying the full amount of the loan which again they are trying to say is only $2000.00 less than what I owed originally!!! Can someone please give me some insight here???? Compass Bank is a crooked business. I think it is time someone stands up to the thieves.

Eh
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Comments

  • Mi
      13th of Aug, 2013
    0 Votes

    Not necessarily "illegal" - better check your state laws.

    In most states, an auto loan can be one WITH penalties for early payoff (all that interest for the life of the loan, even if payed early), or WITHOUT penalties (you do NOT pay interest for the remainder of the loan term).

    The problem is - you argue from a weak position - you are not the account holder. Legally, without your name on the loan, the bank does not have to speak to you at all.

    The one point that you do have in your favor (assuming you have posted the entire story) - is that all payments have been made (regardless of who made them). They cannot repossess a vehicle if payments are up-to-date. That could get them in a HUGE pot of hot water.

  • Mi
      13th of Aug, 2013
    0 Votes

    Not necessarily illegal - you had better check your state's laws.

    Most states allow for two types of auto loans - WITH penalty (usually the interest for the entire loan term when paying off early) or WITHOUT penalty - you pay interest "up-to-date"... so when you pay off the loan (or refinance it), you do not pay the interest for the remaining part of that loan.

    Unfortunately, you are arguing from a weak position - your name is not on the loan. The bank has no obligation to speak to you at all. Indeed, there are some privacy laws that may actually prevent them from LEGALLY telling you ANYTHING about the loan.

    And as far as repossession is concerned - they have no legal grounds so long as the payments are up-to-date. It doesn't matter who the payments are coming from. If they were to repossess the vehicle while payments are current, they would open themselves up to huge liability.

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