Consumer complaint received 2024-03-14
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Billing problem
Company: VW Credit, Inc (VA)

I leased a XXXX XXXX XXXX with VW credit back in XXXX of XXXX. The lease agreement was for a term of 43 months at the rate {$450.00} monthly. A year after having the vehicle my father had been diagnosed with XXXX XXXX XXXX XXXXXXXX and I was his only XXXX during his treatments I was struggling to get hours at work and was short one month to make my car payment. I called and talked to someone in the billing department and they said no problem that they would take that month payment and add it to the end of my lease, which was understood by me and was very appreciated at that time. On XX/XX/XXXX I received a letter from VW credit advising that my lease was in default and immediate action was require for a total amount of {$1000.00} due. On XX/XX/XXXX I deiced to go and talk to someone at the dealership as this was a close-end lease to see my options of payments and to discuss loan options to purchase the vehicle. The gentleman pulled up my account and handled me printed the dealer quote detail of my account. Unfortunately I did not qualify for a loan at that time to purchase the vehicle. The information of my account that was printed and handed to me that out of 43 payments that were suppose to be made there was a remaining 2 payments on my account. So I had made a total of 41 payments of {$450.00} for a totaling of {$18000.00}. After the car was taken back from them, at that time I was not in the best of situations and ended up losing my employment because I couldnt get to work, and then in that same time lost the place I was living at and financially wasn't able to support myself or pay any of my debts at that time. As time went on I had forgotten all about the debt, and It wasn't until I seen my full credit report in XXXX that I had even remembered about it. I ended up filling a dispute against the information that VW credit was providing, this was the first time I had seen a outstanding balance of {$9500.00} and reporting of late payments of 30 or 60 days and the amount that was owing on this account. I filed a the dispute and requested VW credit validation this debt and amount owed because what I signed to pay and what was an actual agreement and what I had paid was a total of {$18000.00} to this lease agreement and after a few months they had removed VW credit from my credit report and that was it. I tried to sign on to the online account I had with them but I guess they had removed my access after the dispute was received by them. Then in on XX/XX/XXXX I received notice from the IRS that I was being penalized for not filing the 1099-C " Cancellation of Debt '' with my XXXX income taxes. I had not received any notice of the debt cancellation nor a 1099-C form for cancellation of debt at all. With further review of the tax notice that the IRS had sent it seems that VW credit had canceled the debt against me and filed this against me in XX/XX/XXXX, they failed to provide me with any documents as I requested to validate the said amount owed, they failed to provide me a copy of the IRS form they failed against me, and they failed to proof this amount was owed. I called again XX/XX/XXXX requesting validation and a copy of the lease agreement and the IRS form that wasn't provided and I was told that the information I requested was being mailed to me that day ( but that he shouldn't even be sending it to me ) and maybe I should hire a tax expert to help me or a lawyer because it seems I am in a dilemma.