Consumer complaint received 2017-07-07
Company: VW Credit
State: UT
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Getting a loan or lease
Sub-issue: Problem with a trade-in

Complaint:
I am from XXXX and speak OK English ( I have asked a friend to type this ). My husband and I purchased a car from Volkswagon XXXX XXXX in XXXX Utah. We decided we did not like the car so we went to another dealership to trade the car in on another purchase. After the purchase was finalized on the new car the new dealership called us back and told us that the XXXX car was a lease and not a sale ( we did not know this ). We thought we had purchased the car and did not know what a Lease was. On XXXX/XXXX/2017 we went to the XXXX dealership and returned the car so that we could keep our new car ( we have a signed letter from from the XXXX dealership stating they received the car back on that day ). We then noticed that our Volkswagon payments for XXXX 2017 and XXXX 2017 continued to be pulled from our bank account, so on XXXX XXXX, 2017 we returned to the XXXX dealership and spoke to the person who had accepted the car ( XXXX XXXX ) who confirmed he had received the car back and wrote us the letter stating he had received the car on XXXX/XXXX/17, he then contacted other people to tell them to stop billing us for the car. In XXXX 2017 we applied for a mortgage loan and were told that the car was listed on my husbands credit report as 60 days delinquent with XXXX and XXXX payments showing missing which was dropping his credit score significantly.
We called the dealership back and were told that they did not know that they had the car ( although the salesperson said it had been sitting out in the lot for several months ). They had me call the financing company and tell them that we had returned the car and ask them to fix my husbands credit. They have refused to fix the credit and they kept the car for 6 months without removing it from my husbands credit report or reporting it returned.
Last week I spoke with the financing office again and they said the car was auctioned and we now have to pay an additional {$14000.00} before they will fix the credit and they say they will still not fix the credit. We have not received any letters about this yet. They say the car was sold at auction for less than what I owed on it and that is why I owe {$14000.00}. They have refused to provide me proof of what the car was purchased for at auction. If this is the case and a car worth {$26000.00} ( according to the financial office ) was actually sold for only {$12000.00} then I should have been allowed the option to sell the car on the open market myself and recoup the funds instead of the dealership getting paid twice for the car ( once from me and once from the new owner ).
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No one told us that the dealership would charge us this extra money for returning the car and they have the car and should not be charging us extra money.
The dealership should not be able to continue to charge us for the payments they took after they got the car back in XXXX and they should be responsible for removing the negative debt from the credit.

Company response to consumer: Closed with monetary relief