Car Payoff Hell

[mark1210]

What is the name of your state? TX

Hello, I need some advice. I recently purchased a car about 12 days ago however my trade in has a balance that has yet to be paid off. I provided a 3 day payoff quote as per their request. 11 days later the loan has not been paid off, and has more interest charges and past due fees. I contacted them by e-mail and phone 9 days ago and was told it was being mailed that same day. I get a call today that the payoff amount is different than what it was 12 days ago. Of course it is....there are now 11 days of interest and past due charges adding up to about $120.00. I told him I refuse to pay. He indicates there is a clause in my contract, and there is. It states:

If in the event the payoff amount is different than 17650.00 buyer agrees to pay the difference on demand of xxxxxx Auto Sales.

There is no time stipulation, what should I do? After I refused to pay the amount he said he wouldn't send the payoff to the other bank. Can he legally do that? He is also threatning to repo the new car. My credit union says that can't happen everything between the credit union and myself is in good standing. Advice?

Thanks!

 

[seniorjudge]

You must pay your own debts.

 

[mark1210]

Senior Judge---Thanks. Two questions though..

1. Is there not any limitations on how long they can take? Could they technically drag their feet for months if they really wanted to? These debts were incurred because they dragged their feet past the 3 day time frame they wrote and orally informed me of. Now that its taking much longer they want me to ante up and pay off the fees they caused. At the time of sale the payoff was accurate and there was no discrepency.

2. The threat of him to just refuse paying the car off at all...is that possible? Seems like it would be in their best interests to hurry up and pay it off so they can aquire the title. I told the salesman yesterday that I made this purchase based upon the information given to me orally and by e-mail from him indicating the car would be paid off in 3 business days. When I mentioned this he simply hungup. =(

Thanks.

 

[tabathadolley]

Is there a reason it took them so long to pay off your car? I mean, when you gave them the payoff(which is good for a certain amount of time), how long before you signed the contract and took control of the new vehicle?

 

[mark1210]

tabathadolley---

I was requested to obtain a 3 day payoff. I received posession of the car the same day the payoff was supplied to them. They had 3 full business days to wire the money or do what was necessary to pay off the loan on the other vehicle. I was never given an exact reason why the delay..I asked and asked...all I was told was the bank has been behind, and that answer changes daily when I keep calling asking when its going to be paid off.

 

[tabathadolley]

I always advise that I am not familiar with the law, so these are based on my experience only..
(I worked at a dealership for several years, and I have bought 3 new cars. )

If you did nothing to prevent them from paying off the vehicle within those 3 days and they simply didn't do it within a reasonable amount of time, I don't think you are obligated(but that's where I mention I am not familiar with the law). If something you did prevented them from paying the car off, you are obligated to pay the difference. Then again, I could be wrong and you could have to pay either way

 

[mark1210]

Thanks for the tip..I even offered to pay a portion of the fees just to get this resolved and they said no deal. I pay them all. Unfortunately I can't do any legal recourse as I signed and entered into an arbitration agreement first. I guess its mediation time.