Consumer complaint received 2018-10-01
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: VW Credit, Inc (IA)

I financed a XXXX XXXX XXXX from XXXX XXXX of XXXX XXXX in XX/XX/XXXX. I made my first payment on XX/XX/XXXX even though my first payment wasn't required until XX/XX/XXXX in the amount of {$400.00}. I had stopped receiving statements after the month of XX/XX/XXXX but continued to make payments every month since I knew that there were funds due. In the month of XX/XX/XXXX I had made an additional payment to pay down the principal. On XX/XX/XXXX after reviewing the amount of my principal payment, I called to inquire if my principal payments were applied correctly. After speaking with the rep she had advised my XX/XX/XXXX payment was applied to XX/XX/XXXX and so forth and my account was actually considered paid ahead as of XX/XX/XXXX. I had advised the rep that I had made 2 " extra '' payments that should have been applied to principal only and she stated that it would have been the XX/XX/XXXX and XX/XX/XXXX payments that would need to be reversed and reapplied to principal. She advised she would put in the request to get it updated. I had to call back on the following dates to check on the status of my request : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and each time was told it was either being worked on or was completed but was not being provided any proof and my principal balance wasn't updated. On XX/XX/XXXX I called back and spoke with a rep asking again about the status of my reversals and was told again it should've taken place and when I requested proof was told they weren't able to generate statements on my account and would have to put in a special request to get documentation. I then advised them that by not providing me with my statements so I could see payment/billing information they were violating Reg Z/Truth in Lending Act they transferred me to a manager XXXX ( XXXX XXXX. XXXX ). He advised he would follow up on the account to make sure that statements would be provided and that the principal only payments were reflected correctly. On XX/XX/XXXX I had to call back to advise the statements that were sent did not provide sufficient information regarding how payments were applied and requested this be done so I could verify that the principal only went to just principal. I was advised that future statements would provide me with the information since they turned off the " pay ahead '' feature on my account and suggested setting up auto payments. On 9/24 I had called back after receiving a manually generated payment history letter to advise that the payments were still not applied correctly because per the letter both the XXXX and XXXX payments had interest taken out of the payment amounts even though they were principal only payments and shouldn't have had interest applied and the subsequent payments should've had less interest since being charged to a lower principal amount. XXXX again advised he would work with the finance dept to correct and would have a new payment history regenerated. The Payment history I received on XX/XX/XXXX still did not reflect the correct information. The interest was simply 0 'd out next to the XX/XX/XXXX and XX/XX/XXXX payments however was charged to the following month. It's evidenced that not only was more interest charged to the subsequent months but the amount paid to principal was less than a normal payment. This information appears to be intentionally deceptive or misleading in an attempt to collect interest where there should not have been and should be reviewed for an UDAAP violation.