There was a huge accounting issue of our car loan.
On 28 September 2010 we had Barksdale Federal Credit Union finance our newly purchased 2010 Chrysler 300. The loan agreement was $44,852.28 with monthly payment of $679.58 be deducted bi-monthly from our banking account. Our bi-monthly payments were to begin December 1, 2010 and end May 16, 2016. $339.79 was deducted from our account for the past 6yrs, January 2016 we were considering in purchasing a new vehicle, however we noticed that there was a balance remaining of $29,773.27 to be paid? We contacted Barksdale on 23 Feb 16 spoke with a representative ********* enquired about the outstanding balance, she indicated we were not late and have never been late and she could not explain it. She mentioned she would have the Senior Manager look into it and contact us. We never received a call. We called again on 22 April spoke with ******** she mentioned the same and could not explain. Finally we received a letter dated 27 April 16 from a Ms. ******* P. ********* Vice President-Consumer Lending, explaining that the loan was not set-up in their host system according to the contract. Instead it was set up on a monthly payment frequency. She admitted that it was an error on their part, however the remaining balance of $29,773,27 had to be paid by us. She went to mention "WE" have to correct this error. She gave us 3 solutions to correct their error, each one offered would cause hard ship on us financially due to a 6 year they made. 1. Pay the difference of $20,707.91, 2. Barksdale correct the due date of the loan and call the loan in. 3. Refinance the remaining balance. The only thing she stated Barksdale Federal Credit Union was willing to do was subtract the $5,675.35 of interest we paid from the remaining balance.
We declined all offers by Barksdale due to the fact they never owed up to their HUGE Accounting Error, they never contacted us during the 6 yr period to notify us there was an error, every time we checked our account NOTHING indicated we were past due, I brought the problem to their attention and it took 2 months for them to contact us and after going back and forth with Ms. ******** and a Car Dealership of not having to settle the remaining balance but of a lesser amount, we decided we would rather spend the next 5-6yrs paying for a New Car rather than 6yr 123k mile car. We had to obtain $,6,300 to give to the new dealership in order to purchase a new car and be rid of Barksdale Federal Credit Union, because we felt we were done doing business with them since we were pressuring us to settle a Huge Accounting ERROR on their part. We would like to be reimbursed the $6,300 and a letter of apology for the stressful and financial hardship they have put us in. We were looking to not have any car payments, but here we are starting over again. Since Barksdale Federal Credit Union is satisfied we have not heard from them at all.
Although we regret the circumstances of this situation, we tried many times to reach Mr. ******** during the process, only to be required to leave a message. At one point, a message was left for us at 2am and it is unfortunate that an employee was not available at that time to speak.
Each member of the credit union receives a monthly statement detailing out the transactions taking place on their accounts. These statements list out any deposits made, debits paid, and payments received for all of our members. Mr. ******** has received statements on his account for the time in question.
A quick and accurate response is key and in order to provide the most up-to date information, and once this was brought to her attention Ms. Epperson did a detailed analysis of the loan. This required her to go through every payment received to be sure that all adjustments were reflected and the interest was calculated correctly. This was a time-consuming process, which was performed as quickly as possible.
By the details listed in the complaint, it is noted that one amount was due in the contract for the loan while 1/2 of that amount was collected each month for 6 years. This error allowed our member a unique opportunity to purchase a vehicle while making the 1/2 of the payment agreed to in the loan contract. Had the full payment been rendered, this would have allowed the member to pay-off the vehicle within the agreed time, and therefore removed the need for a $6,300 down payment. Had the remaining 1/2 of the payment been placed in a non-interest earning account, over $24,000 would have been saved. As noted in the complaint, and although not legally required, the noted interest on the loan was voluntarily forgiven as an additional step to help our member in this matter and convey the value we place in our membership. Our VP of Consumer lending also personally wrote a letter of apology to Mr. ******** to convey a heartfelt apology for the additional trouble in the closing of this loan pay-off.
If there is anything else that we can to do to try and help Mr. ********, please let us know.