Incorrect Payoff

[NeedHelp2016]

Hello. I'm new here and in need of some help. I recently refinanced a watercraft. The finance company gave out the wrong payoff amount. One month's payment was not factored into the payoff. I advised the old finance company the payment would be returned so since they knew this, it should've been factored into the payoff. Now they want me to pay this and they won't release the title to my new finance company until it is paid off. I feel that because I was completely upfront about the payment being returned, they should've factored this into the payoff. They should absorb the difference. Can I get the old finance company to take responsibility for the mistake? Can I take legal action against them?

 

[tranquility]

When you write:

I advised the old finance company the payment would be returned so since they knew this, it should've been factored into the payoff.

What do you mean? Don't focus on the factoring into the payoff portion, but what you advised the company of and what the payment being returned means.

 

[NeedHelp2016]

Before I even thought of doing a refi, one payment was going to bounce. The old finance company knew this but and the payment had in fact bounced by the time I did the refi but the old finance company did not factor it in.

 

[tranquility]

Why do you think you should get credit for a payment you didn't make? Or, am I missing the issue?

 

[NeedHelp2016]

I am not looking for credit. A returned payment would signify a higher balance for the payoff right?

 

[Zigner]

I'm not sure what you are unclear on. You owe the total balance due. There was an error made in your payoff quote. That error doesn't magically change the actual amount due.

 

[Zigner]

What US state are you in?

 

[tranquility]

I am not looking for credit. A returned payment would signify a higher balance for the payoff right?

I agree. Apparently, the finance company agrees as well. You, I and the finance company all agree. Pay them what you owe. That for some period of time they had a mistaken belief about how much you owed, does not make it true; nor does it give rise to damages. You have not been hurt in any way. Without a harm, you can't sue.

 

[NeedHelp2016]

California. I'm simply disputing the amount of the payoff. If the old finance company knew the payment would be returned, they could've added that to the payoff. My new finance company would've more than happily taken on the amount had it been included in the payoff.

 

[tranquility]

I didn't really understand your concerns or the issue as your words were backwards from what I would have expected, but I think I do now. You don't have a lawsuit. In fact, you may have had free money for the time of the refinance to now for the unaccounted for payment. You have no damages.

 

[NeedHelp2016]

Wrong. I have to pay double. The balance of the original loan and the payment for my new loan. How is hat fair? All because the first finance company made the mistake? Sorry but that's really messed up!

 

[Zigner]

If the old finance company knew the payment would be returned, they could've added that to the payoff.

But, they didn't. As such, you still owe it.

My new finance company would've more than happily taken on the amount had it been included in the payoff.

But it wasn't, so they didn't. As such, you still owe it.



You know this, don't you...you're just yanking our collective chain, huh?

 

[Zigner]

Wrong. I have to pay double. The balance of the original loan and the payment for my new loan. How is hat fair? All because the first finance company made the mistake? Sorry but that's really messed up!

You DON'T have to pay double. You have to pay exactly what you owed. In fact, in the long run, you'll pay less because you won't be paying interest on that last payment...you know...the one that YOU bounced.

 

[NeedHelp2016]

When you refinance isn't it the case that you should owe nothing to the old finance company and you start paying the new finance company? There should be no residual balance!

 

[Zigner]

When you refinance isn't it the case that you should owe nothing to the old finance company and you start paying the new finance company? There should be no residual balance!

The bottom line is that YOU screwed this up by bouncing that last payment. The loan payoff is simply a number that is spit out by the computer. You made a payment and then requested a payoff amount. The computer had no way of knowing that your payment was going to bounce. In fact, now that I've typed that, it's become even MORE apparent that this entire mess was caused by YOU.