Consumer complaint received 2019-08-06
Company: TD BANK US HOLDING COMPANY
State: MA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
I had purchased the XX/XX/XXXX XXXX XXXX on XX/XX/XXXX, the dealership financed me through TD Auto Finance. I had also added GAP insurance for {$790.00}, which was also financed through TD. A week later after delivery of my XXXX, I decided I wanted to cancel the GAP insurance. I spoke with the dealership and they sent a cancellation form to TD. Dealership said I would see a return within the next few billing cycles. 

My first paper statement came XX/XX/XXXX, due date XX/XX/XXXX, total amount due {$340.00}, I paid on XX/XX/XXXX. 

My second paper statement came XX/XX/XXXX, due date XX/XX/XXXX, total amount due {$340.00}. I log into TD Auto Finance 's payment portal attempting to make a payment, but total amount due shows that I owe a {$0.00}. I check my payment history, and I see that a payment for {$790.00} was made XX/XX/XXXX, turns out TD Bank applied the GAP insurance refund towards a monthly payment. Since my balance was {$0.00}, I made no payment. 

My third paper statement came XX/XX/XXXX, due date XX/XX/XXXX, this time on paper it says my total amount due was {$0.00}. The {$790.00} GAP insurance refund was still enough to cover payments for this months bill. And once again I logged into TD Auto Finance 's payment portal, and it says I have a {$0.00} balance. I made no payment. 

My fourth paper statement came XX/XX/XXXX, due date XX/XX/XXXX, total amount due is {$240.00} which is {$100.00} lower than my original monthly payment amount of {$340.00}. The pro-rated amount makes sense, as TD is using the remaining of the GAP insurance refund on this statement as well. {$340.00} + {$340.00} + {$100.00} = {$790.00}. 
Naturally, I see that I owe {$240.00} for the month so I log into the portal and pay. 

My fifth paper statement came XX/XX/XXXX, due date XX/XX/XXXX, total amount due {$340.00}, I log into TD Auto Finance 's payment portal on XX/XX/XXXX to make my payment, I am now seeing that I am 60 days past due, and owe {$810.00}, my account is thrown in collections, and TD 's collections department will no help me or provide me with any reasoning. They tell me that this has all been reported to credit bureau, and to get out of collections I must satisfy the {$810.00}. I immediately pay it over the phone. 

The next day, I am out of collections and can finally speak to a real TD Customer Service rep. I am told that the {$790.00} GAP insurance refund, automatically goes to monthly payments at first via an " automated system '', but then someone manually intervene to have that refund reversed and applied to my loan 's principal balance. My jaw dropped, and my argument was getting nowhere. The rep 's only excuse was, monthly statements are not accurate, and should not be used to determine your monthly payment, and neither should the online payment portal. This is the most asinine thing I have ever heard. All banks in the industry send out statements and you are expected to pay the amount due! It's completely non sense to say billing statements should not be used. 

Moving on. I asked the rep where the communication was. Why wasn't I told about inaccurate billing statements after a refund has been initiated? Why wasn't I told about the GAP insurance refund being applied to principal? Why wasn't I told that my account was past due? Why wasn't I told 30 days late? Why wasn't I told that I was 60 days late? No calls, no letters, I verified my mailing address, I verified my phone number, they had everything. 

So, here 's where the plot thickens. They normally do call, but they themselves didn't get notified that the account was past due because of their " automated system ''. The same automated system that generates the inaccurate billing statements, that they fault me for relying on, but don't fault themselves for relying on for not having to communicate with me about any of this. 

On top of everything, I have made various calls back, to see if I can get a managers escalation, and they keep telling me someone will call me within 24 hours. I have yet to get a call back from anyone. 

I am beyond furious ; my perfect credit score has plummeted 100 points  because of TD 's non sense. Ive worked years on achieving a high credit score. This wasn't me trying to dodge my payments, I have money available to pay my bills on time. I forked over the {$810.00} in a heart beat to get my account in good standing. This bank is very deceitful, shows no sympathy, and very unwilling to help their customers. They are great at hiding information from you and bullying you. 

I will attach all my statements proving everything.

Company response to consumer: Closed with non-monetary relief