Consumer complaint received 2023-06-30
Company: CarMax, Inc.
State: FL
Product: Debt collection
Sub-product: Auto debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
On XXXX XXXX I spoke with agent XXXX from Carmax Auto Finance regarding a charge off made on my XXXX XXXX XXXX. I was advised of the total amount of $ XXXX dollars due for collection to close out the loan. I requested a settlement agreement and was then advised that i am approved for a settlement of {$720.00} that must be paid in full by the end of XXXX XXXX. I paid {$400.00} during the call and owed the balance of {$320.00}. I advise the agent that the balance will be paid the following Friday. She said no problem as long as it is paid before the end of XXXX the offer is applicable. I was lead to believe that once the balance is paid in full then the write off would be removed as they update the credit bureaus that the account is paid in full and all arrangements have been met by the customer. I was told that i would receive the payment amount in the mail and then the final close out information after the payment is made. Prior to this conversation and the settlement agreement i was also told by another agent that because the write off is new if it is paid in full within a certain time frame it can be removed from my record. This was all new information for me, i was never informed of these rules before nor did i ever research these rules so what was said to me was all i knew it to be. I know i am not making it up in my head. If the company rep misspoke or created an incorrect assumption this is the action of the agent and not the consumer. I paid the balance of XX/XX/XXXX at XXXX XXXX  and the agent at that time said that they would update the charge off to credit file and state that the payment is paid in full. I said to her when you said update does that mean the charge off will be removed. She responded, no, the charge off will stay there for 7 years. I then said to her, but i agreed to pay a settlement to remove the charge off report. This is what i was told by the agent who offered me the agreement. This was my understanding. She told me that they don't do that. Even though i was still confused i said ok and took the confirmation information. 

A minute later i called again and told the agent who answered that i just paid the balance and i was told that the information would be updated but the charge off would remain which is different from what was siad before. She asked if i spoke to the same agent both times and i said no. I told her the agent who offered me the settelement lead me to believe that it would be removed based on full payment of the settlement amount. She then transferred me to XXXX. XXXX stated that she did not say this to me " She did not say that the report entry would be deleted ''. I responded by saying you did not say it would be deleted, instead your words were " it would be removed '' You also said you would update the file. Leading me to believe the update would be a removal of the entry. I said there is a recording so we can check that. She said her manager would do that. She put me on hold and the collections manager XXXX came on the call and stated that she listened to the call and the agent stated that it would be updated but the charge off would remain. I asked for the agent full name and contact information and she said they could not give me the information. I asked for the manager full name and contact information such as an extension number or email. She stated that she could not give me that information. She said the only thing she can tell me is that she is the manager in the collections department. I also did not hear the recording for myself. I asked them to verify all the details, dates, time and dollar amounts as per the agreement. The information is below. I then said ok thank you and hang up. 


AUTO FINANCE CLOSE OUT AGREEMENT Customer : XXXX XXXX XXXX Agent Name : XXXX Collections Manager : XXXX Date : XX/XX/XXXX around XXXXXXXX XXXX  Total Amount Settlement Agreement : {$720.00} Paid : {$400.00} on XXXX XXXX XXXX XXXX XXXX  Paid {$320.00} on XXXX XXXX XXXX XXXX XXXX Final Payment Expiration Date : XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation