Consumer complaint received 2022-12-22
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: CarMax, Inc. (NC)

XXXX XXXX ( XXXXXXXX XXXXXXXX XXXX XXXX ) at the XXXX CarMax Dealership called me back after I initially talked to XXXX and asked for a supervisor on XX/XX/2022. XXXX and I discussed removing the GAP insurance from the account. First he tried to say that he needed the mileage but then after I provided it to him, XXXX said that it was not necessary and that he just needed the last XXXX  of the XXXX number. During this time, I asked XXXX, how was this to be calculated. He advised me that a XXXX XXXX calculation of {$570.00} made it XXXX. I asked him where he got the percentage from but he was not able to fully explain the prorated percentage. He never mentioned a cancellation fee and never stated I needed to sign for the cancellation or for the unmentioned administration fee. XXXX stated that he could just complete it over the phone. 
I asked him for a follow up email for the GAP insurance removal with the calculation. Once I was able to review the email, I noticed on the attachment that I was charged an administration fee that I was not informed of, I did not consent to and did not sign for. 
The amount that would have been removed from the overall balance is {$340.00}. Instead, with the {$30.00} fee, it only removed {$310.00} from the overall account balance. 
My contention is that I have been charged a policy/service fee that is not congruent with the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  states a policy or service fee should not be charged unless the following occurs : NCAC 4.0120 ( 1 ) ( 2 ) ( 3 ) states : " An agent, broker, or limited representative who deals directly with an applicant and who intends to charge a policy or service fee in accordance with G.S. 58-33-85  ( b ) shall not do so unless he complies with the following : ( 1 ) A sign that informs the applicant in large bold print that a policy or service fee of ( amount ) will be charged, shall be displayed in a prominent place so as to be seen and read from any part of the office lobby.

( 2 ) The applicants consent in writing is obtained on a separate form each time a policy or service fee is charged. The form shall be entitled, " Policy or Service Fee Consent '' and shall include the date and amount of each fee charged.

( 3 ) A dated receipt for the payment of a policy or service fee shall be issued either separately from the policy premium receipt or stated separately on the receipt issued for the policy premium. '' I was NOT provided with any of the aforementioned. The policy administration fee on the alleged initial GAP Insurance Agreement was NOT in big bold letters. The removal took place over the phone. I was not given a separate form entitled Policy or Service Fee Consent to give consent to be charged with any policy or service fees. I DID NOT sign any separate form at the time that policy or service admin fee was charged for it was done over the phone. I DID NOT READ OR AGREE to the terms on back of the Return Agreement because I did not read it and I did not sign the form for the process that occurred over the phone. I only agreed over the phone to have the GAP insurance removed. XXXX XXXX also DID NOT verbally inform me that I was charged any fee. 
The enclosed call log record made to Car Max Auto, the Car Max Auto Dealership ( XXXXXXXX XXXX XXXX XXXX, Car Max XXXX XXXX XXXX XXXX  ) and the XXXX XXXX XXXX through which Car Max purchased the GAP policy from. 

I was given the runaround by each department and each company. Car Max refused to remove the fee and tried to state that XXXX  is the one that charges the fee but I DID NOT have any direct interactions with XXXX  when signing up for the GAP insurance or in the removal. XXXX advised that Car Max purchased the policy from them and then Car Max sells the policy to the consumer.