On XX/XX/XXXX I made an outbound call to the collections department of XXXX XXXX XXXX to advise that I would be sending over an insurance check in the amount of {$2.00}, XXXX i was asked by the representative if this was to catch up my past due payments. I advised the representative that is was and hopefully any future payments. I also asked the representative if I should sign the back of the check, she responded to be on the safe side yes. That same day I sent the check with my account number listed to the mailing address confirmed with the same representative, XXXX. XXXX XXXX, XXXX, TX XXXX. I confirmed via my finance app that the payment was received and applied 6 days later XX/XX/XXXX. My app at that time showed that I had no payment due for my normal date of payment XX/XX/XXXX or XX/XX/XXXX. I receive monthly emails and paper statements to advise the next payment due and I received an email showing that a payment was now due for XX/XX/XXXX when it previously showed that there was no payment due. I then reached out to a representative in the customer service department at XXXX XXXX XXXX approximately Wednesday XX/XX/XXXX. I spoke to a representative and asked why there was no longer a positive balance on my account. The response form the representative was that the payment sent covered the entire past due balance. I informed them that my amount to become current was {$1100.00} so there should have actually been an over payment. I then requested to speak to a supervisor. Once the supervisor got on the phone I explained my situation again and she advised there was a simple process to have the over payment moved back to payments. She advised that when there is a payment over {$2500.00} received then the overage would go to principal. She advised to allow 3 business days for payment to be corrected. I then checked my account on Tuesday XX/XX/XXXX and saw that it showed me to be 80 days past due and owing a balance of {$1500.00}. i then reached out to another customer service representative and was advised that she showed my account to be current but a payment is due XX/XX/XXXX. I asked about the amount I saw online and she stated that it appeared the transfer of funds from principal was declined and the entire amount was reversed. I was then placed on hold but the call disconnected. I called back on XX/XX/XXXX and spoke to a collections representative, as of now my account is showing 82 days past due, and explained my situation and she advised she would get her supervisor to assist me. I spoke with the supervisor and explained my situation. I was then informed that she apologized but they originally applied the payment in error and they caught their mistake so they are not able to put the payment back to make my account positive. I was then informed that my car is eligible for repossession since the days past due and a payment of {$450.00} had to be made by XX/XX/XXXX and I could call back Monday XX/XX/XXXX to request a 2 month extension for the rest. I advised I did not agree with their decision to take the full payment back. i advised as a customer I rely on them to tell me there business practices and I was misled by at least 3 representatives. I asked for the payment to be reversed as they previously had it but was turned down. i ended up making a payment for {$450.00} to try to prevent repossession of my vehicle but i do n't think I should have had to pay anything.