Consumer complaint received 2026-05-31 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem while selling or giving up the vehicle
Company: CAPITAL ONE FINANCIAL CORPORATION
State: KS

Complaint narrative:
COMPANY COMPLAINED AGAINST Company Name : Capital One Auto Finance Address : XXXX XXXX XXXX, XXXX, TX XXXX Phone : XXXX Vehicle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Rogue On XX/XX/XXXX, a major hail storm in XXXX, Kansas totaled two of my vehicles, both financed through Capital One Auto Finance : a XXXX XXXX XXXX XXXX and a XXXX XXXX XXXX. Insurance claims were filed the following day, XX/XX/XXXX, through XXXX XXXX. Capital One issued Letters of Guarantee to Progressive on XX/XX/XXXX, providing 10-day payoff figures of {$30000.00} for the XXXX and {$3100.00} for the XXXX, both quotes good through XX/XX/XXXX. On XX/XX/XXXX, Progressive transmitted the insurance settlement funds to Capital One via Electronic Funds Transfer ( EFT ) for both vehicles : XXXX XXXX XXXX : {$27000.00} XXXX XXXX : {$3100.00} The insurance sent these funds for both vehicles dated XX/XX/XXXX via electronic funds transfer. Both were transmitted as part of large batch EFT payments, demonstrating that Capital One 's systems were actively processing electronic transfers on XX/XX/XXXX. Despite receiving both payments on XX/XX/XXXX, Capital One did not apply either settlement to my accounts until XX/XX/XXXX, a delay of 9 days. This delay caused direct and measurable financial harm in three ways : HARM 1 : Improper Auto-Payment Withdrawals On XX/XX/XXXX ( eight days into the hold ) Capital One automatically withdrew monthly payments from my bank account for both vehicles : {$640.00} for the XXXX and {$360.00} for the XXXX. At the time these payments were pulled, Capital One had already been holding {$30000.00} in insurance settlement funds belonging to my accounts for 8 days. The XXXX loan is now fully paid off at {$0.00}, making the entire {$360.00} withdrawal an overpayment. Capital One has acknowledged these withdrawals and stated it will issue paper checks in 7-10 business days, but has refused to return the funds electronically despite having received them electronically. HARM 2 : Improper Interest Accrual During the Hold Capital One continued charging interest on the full pre-settlement balances of both accounts throughout the 9-day hold period, despite already being in possession of the insurance settlement funds. On the XXXX account, this resulted in a current balance of {$2200.00} ( per Capital One 's information published on the app ) which is significantly higher than the {$1900.00} that should remain after properly applying the settlement and the XX/XX/XXXX payment. The {$330.00} discrepancy represents interest improperly charged while Capital One held my funds. On the XXXX, Capital One charged {$1.00} in interest at the moment of settlement application despite having held the funds for 9 days. I spoke with a Capital One representative named XXXX ( Employee ID : XXXX ) in the Escalation Department on XX/XX/XXXX. He confirmed that interest continued to accrue on the full pre-settlement balance until the payment was applied, and that this is Capital One 's standard practice. No written policy or justification was provided for the 9-day processing delay on an electronic transfer. HARM 3 : Failure to Apply Dealership Refunds Following the total loss of the XXXX, and the insurance company sending the funds to Capital One, I began the process of cancelling my extended warranty through the selling dealership, XXXX XXXX XXXX in XXXX, KS. They gave me an estimate of {$2700.00} as a refund. On XX/XX/XXXX, XXXX informed me that the refund of the service contract would cover the balance left after the insurance settlement and that XXXX would not be needed. They let me know that I should contact the dealership, and that money should be sent to me. When I called XXXX XXXX XXXX and spoke to XXXX that day, he informed me that both the service warranty and XXXX insurance had already been cancelled and the funds were sent to the lender. The XXXX warranty was estimated at {$830.00} by EFT. As of the date of this complaint, neither amount has been applied to my account balance of {$2200.00}, despite the fact that together ( {$3500.00} ) these refunds exceed the remaining balance and should result in a credit of approximately {$1200.00} owed back to me. PATTERN OF CONDUCT Capital One 's conduct in this matter reflects a deliberate pattern rather than an isolated processing error. The company : ( 1 ) received two separate EFT payments on the same day and delayed applying both for 9 days ; ( 2 ) withdrew automatic payments from my bank account during that hold window ; ( 3 ) continued accruing interest on the full balance while holding the settlement funds ; ( 4 ) refused to return overpayments electronically despite receiving them electronically; and ( 5 ) has not applied dealership refund funds that have been sent to them. I have personally experienced Capital One applying third-party electronic payoffs immediately when it benefits them specifically when I previously refinanced a vehicle and the paying lender 's EFT was applied the same day it was received. The selective application of processing delays in circumstances that generate additional interest income suggests this is a policy choice, not a technical limitation. I called Capital One on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX to inquire about the status of both settlements before requesting to speak to the Escalation Department on XX/XX/XXXX. FINANCIAL SUMMARY OF AMOUNTS OWED Amounts Capital One owes me directly : XXXX XX/XX/XXXX auto-payment refund {$640.00} XXXX improper interest overcharge {$330.00} XXXX XX/XX/XXXX auto-payment refund ( full overpayment ) {$360.00} XXXX interest charged at settlement application {$1.00} Confirmed subtotal owed to me {$1300.00} Additional funds Capital One has received but not applied or returned : Service contract refund ( sent by XXXX to Capital One ) {$2700.00} XXXX cancellation refund ( sent by XXXX to Capital One ) {$830.00} Current XXXX balance Capital One should apply these against {$2200.00} Net credit owed after balance cleared {$1200.00}

Company response to consumer: Closed with explanation