Consumer complaint received 2020-02-20
Company: VW Credit
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
Hi, On XX/XX/XXXX, I traded in my XXXX XXXX XXXX XXXX to the XXXX XXXX XXXX XXXX XXXX XXXX. The payoff as cited by XXXX VW dealership was {$14000.00}. It was this amount that was sent as a payoff along with all documentation to VW Credit. VW Credit received this payoff check on XX/XX/XXXX. However, they continued to leave my account as active status and as an active lease as if I still had the car and did not close the account. They never informed me once. When I was applying for a loan this week, I was informed by the banks that I have an active lease that I am 42 days past due. When I called VW stating that I don't have the car anymore and the dealership already paid off the car, they stated that the payoff amount they received was for a franchise only payoff which was only for Volkswagen dealers and not for out of VW dealers and not for a out of franchise payoff. They admitted on receiving {$14.00}, XXXX which was 100 % of the amount that was told to us by XXXX VW Salesman as to the payoff to the car. However, VW Credit believes the amount is short {$860.00} and that the amount should be {$15000.00}. In fact, they received 94.2 % of the amount, but reported me on the credit report as if they received nothing and that I have been behind my lease payments for 42 days. The out of franchise payoff was {$15000.00} which was {$860.00} more than what I and the dealer was told from XXXX VW. Since VW Credit did not receive what they feel was the full amount for the car that I traded in on XX/XX/XXXX for a new XXXX, they left my account open. They did not update the credit report stating that they received {$14000.00} already and left it on the credit report as if I intentionally neglected to pay my lease payments. Furthermore, this {$860.00} is an erroneous number that neither VW Credit or XXXX VW told us when we got the pay off from Gunther VW. The process to get the pay off was to approach the dealer which XXXX XXXX XXXX XXXX XXXX told me was correct. She also admits that the error was not on XXXX XXXX or me, but on XXXX VW for providing the wrong payoff which was intended for franchise specific one and not for out of franchise payoff. Since neither of us were at fault, VW credit still wants the {$860.00} from the dealer or from me for a car that I don't even have anymore and has already been sold. There was no way knowing that the payoff received was for a franchise specific one and not for a out of dealer one, yet I am being held responsible and my credit has been hurt in the process. XXXX informed me she would need a letter from XXXX XXXX detailing everything I mentioned and claiming fault for the amount that XXXX VW provided us to update my credit profile. The letter was faxed in on XX/XX/XXXX. However, they still need that {$860.00} from the payoff that neither I or the dealer knew about it when the deal was made. We were only told about the {$14000.00} amount. My account is currently with the 30 days past due department when in fact there is no past due amount on my car since I don't have the car anymore. Furthermore, they have now told me that they will not update my credit report until they receive the payoff shortage of {$860.00} and an odometer statement from XXXX XXXX. 



Thank you XXXX XXXX Desired Resolution / Outcome

Company response to consumer: Closed with monetary relief