Consumer complaint received 2025-07-20 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: VW Credit
State: MO

Complaint narrative:
follow up to my earlier communication about the following volkswagen financial services account Being reported on my credit file listed under my name and social security number, after expressing myself letting you guys know due to the automated system you guys have which is a technical issue due to at the end of each call you make a payment it states payments is received with the confirmation number, so now i have proof of your letters from Volkswagen financial services agreeing to take off my late payments on my credit report, due to your technical issue from automated system making me late from the date you VW credit financial claim of XX/XX/year> in your system. 
Volkswagen FS account is listed 30 and 60 day late payment, I have NEVER been late on this account due to records, i can also show in the consumer law that that payment should not be taken 6 days but only can be 5 days after time actual payment date being paid, which after the automated payment on XX/XX/year> {$430.00} was paid, but not taken out until XX/XX/XXXX. 



This late payment for XXXX and 60 days requires a removal because I've paid the full amount plus any fee that was due to be paid upon Volkswagen financial services request in letter dated XX/XX/year> ( if you pay the amount due by the last day for payment you may continue with the contract as through you were not late ) request so now as agreed on both ends to REMOVE he late payments information and make this account XXXX CURRENT with no late payments. 
Examples of why this happened to my account which is unfair and not my fault. 
1.Technical glitches causing notifications to be sent incorrectly : An automated email or system alert might be sent to a consumer indicating a payment is due when it has already been made, according to a XXXX user XXXX While this may not directly cause a missed payment, it can create confusion and unnecessary XXXX If a consumer receives such a notification and believes they've already paid, they might disregard the message and potentially miss the payment due date if the original payment wasn't processed correctly,. In such instances, the automated system might not have the functionality to confirm whether a payment was received Failed automatic payments ( XXXX issues ) : There have been reports of Volkswagen Credit 's automated system failing to process automatic payments from bank accounts even when sufficient funds are available, according to a XXXX thread. This can result in a past-due balance and potentially late fees, despite the customer 's intention to pay on time through XXXX,. Users on XXXX have reported encountering this issue for several months, with Volkswagen Credit citing insufficient funds as the reason 2. Delayed or unapplied payments : In some cases, the system might not process or apply payments received promptly, leading to delays and the potential for a missed payment notification,. This could occur due to technical glitches, communication errors, or internal processing issues,. For instance, a customer paid off their loan in XXXX, but Volkswagen Credit continued to report missed payments for every month of the same year and even two months prior, according to a XXXX XXXX XXXX XXXX XXXX XXXX complaint. This highlights a potential failure of the automated system to accurately reflect the account status and payment history. 
XXXX. Mishandling of early or overpayments : The automated system may misinterpret payments made early or exceeding the minimum monthly amount due, according to a XXXX thread. Instead of applying the extra funds to the principal ( which typically reduces interest and future payments ), the system may allocate them as a credit toward the following month 's payment, effectively skippin a payment,. If the consumer is unaware of this misapplication and doesn't make an additional payment for the following month, they could inadvertently miss a paymentThese examples demonstrate how various errors or limitations within Volkswagen Credit 's automated systems could lead to missed payments or inaccurate reporting, requiring consumers to actively monitor their accounts and take steps to rectify such situations. 



Truth in Lending Act ( TILA ) : This federal law mandates lenders to disclose the full cost and terms of a loan to the borrower, says the Consumer Financial Protection Bureau. In the context of auto loans, this includes providing clear and concise information about the APR, finance charges, total payments, and other critical loan details before signing the contract. 



Electronic Fund Transfer Act ( EFTA ) : This law protects consumers making electronic fund transfers, including recurring payments for auto loans,. Among its provisions, it generally prohibits requiring recurring electronic payments as a condition for loan approval, except in specific circumstances.

Under these laws, auto lenders like Volkswagen Credit have specific responsibilities when processing payments and reporting information to credit bureaus : Accurate disclosure of loan terms : Before and during the loan term, lenders must clearly and accurately disclose all terms, costs, and payment schedules, as required by the TILA, including the APR, payment amount, late fees, and prepayment penalties, says the Consumer Financial Protection Bureau.

Prompt and proper payment application : Payments must be applied correctly and promptly to the borrower 's account, following the terms of the loan agreement and any specific instructions from the borrower, according to the Consumer Financial Protection Bureau.

Reporting accurate payment information to credit bureaus : Lenders have an obligation under the FCRA to report accurate and complete information regarding payment history and account status to credit bureaus, according to Experian. Misreporting or failing to correct errors can harm the consumer 's credit standing.

Investigating disputes : If a consumer disputes an error related to their auto loan payments or credit reporting, the lender is generally obligated to investigate the claim within a reasonable timeframe and correct any verified inaccuracies. 



Penalties for non-compliance Violations of these laws can result in significant penalties for lenders, including fines and legal action, notes XXXX XXXX XXXX. Consumers may also be entitled to compensation for damages caused by the lender 's failure to comply.

Company response to consumer: Closed with explanation