Consumer complaint received 2026-05-26 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: VW Credit
State: FL

Complaint narrative:
My vehicle was declared a total loss following an accident in XX/XX/year>. Volkswagen Credit has been fully aware that this account has been in active total loss and insurance claim processing for months. Despite this, Volkswagen Credit has continued reporting late payments to the credit bureaus while insurance proceeds were actively being processed and delayed due to circumstances outside of my control. After the total loss determination, XXXX issued an insurance payment to Volkswagen Credit. The original insurance check was mailed on XX/XX/year>. Volkswagen Credit later informed XXXX that the check needed to be canceled because the ZIP code on the payment mailing address was incorrect. However, despite the ZIP code issue, Volkswagen later confirmed that the original check still reached the correct Volkswagen processing department and was received on or around XX/XX/year>. Because Volkswagen instructed XXXX to cancel the original check, the payment was voided and returned. Volkswagen then generated a total loss not approved notice after the original check was canceled, even though the cancellation occurred at Volkswagens own request and not because payment was denied. XXXX then reissued a replacement insurance payment on XX/XX/year>, to the corrected address provided by Volkswagen Credit. As of XX/XX/year>, Volkswagen Credit states they still have not received or processed the replacement payment. I have spent extensive time attempting to resolve this matter directly with Volkswagen Credit customer service, including multiple lengthy phone calls, but representatives have provided conflicting information and no resolution. I am also requesting that Volkswagen Credit explain why the original check mailed on XX/XX/year>, with an allegedly incorrect ZIP code, was still able to reach and be processed by the correct department by XX/XX/year>, while the replacement check mailed only two days later on XX/XX/year>, to the corrected ZIP code, has still not been received or processed as of XX/XX/year>. This timeline strongly suggests there may be an internal processing delay or handling issue within Volkswagen Credits payment processing system that is outside of my control. The delays in payment processing have been entirely outside of my control. Volkswagen Credit has been aware throughout this process that : 1. the vehicle was a total loss, 2. insurance proceeds were approved and issued, 3. the original check was canceled at Volkswagens own instruction , 4. a replacement check was promptly reissued by XXXX, and 5. the account remained in active insurance claim processing. Despite this, Volkswagen Credit has continued reporting delinquent payments to the credit bureaus and has continued threatening additional late reporting while insurance funds are pending. I believe this reporting is inaccurate and unfair because the delays were caused by administrative handling and payment processing issues between Volkswagen Credit and XXXX, not by refusal or failure on my part to resolve the balance. I am requesting : * a full investigation into the handling of the insurance proceeds and payment processing delays, * correction and removal of inaccurate derogatory credit reporting related to this total loss claim, * suppression of additional negative credit reporting while the insurance payment is being processed, * and confirmation once the replacement insurance payment is received and applied properly to the account.

Company response to consumer: Closed with explanation