Consumer complaint received 2026-02-05 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem with paying off the loan
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
Product : Auto loan Company : JPMorgan Chase Bank , N.A . ( Chase Auto ) Complaint Narrative I am submitting this complaint regarding improper servicing of my auto loan following a total loss and the resulting inaccurate credit reporting. 

Timeline of events : On XX/XX/XXXX, my vehicle was declared a total loss and was surrendered to my insurance company. 
On XXXX XX/XX/XXXX, the insurance company issued payment for the vehicles market value. 
The GAP claim was initiated in LATE XXXX / EARLY XX/XX/XXXX because I was required to first obtain final refund documentation related to extended warranty and ancillary products from the original dealership. 
The dealership significantly delayed issuing these refunds and the associated paperwork, despite my repeated follow-ups. 
I initiated the GAP claim immediately after the lender confirmed receipt of the extended warranty refund and all required documentation became available. 
I did not delay the GAP claim voluntarily ; the timing was dictated by documentation requirements outside of my control. 
On early XX/XX/XXXX, I initiated a GAP insurance claim immediately after all final insurance payments were received. 
On XXXX XX/XX/XXXX, I received written confirmation from the GAP administrator stating that the remaining loan balance was paid in full and that I had no remaining financial obligation. 

GAP Approval and Subsequent Conflicting Information from Lender After receiving written confirmation from the GAP insurance provider indicating that, based on the GAP Breakdown / Worksheet, the remaining loan balance would be fully satisfied and that I would not owe any further payments to the lender, I reasonably understood the matter to be resolved. 
Relying on this information, I believed the loan was effectively closed, with the remaining balance to be paid directly by the GAP provider. 

Subsequently, after contacting the lender for clarification, I was informed that I was still considered to have an outstanding balance, as the lender had not yet received the GAP Breakdown / Worksheet and certain GAP-related refunds. 
I was instructed by the lender to request that the GAP insurance provider send the required documentation directly to Chase. 

I contacted the GAP insurance provider and requested that the GAP Worksheet be sent to my loan holder. On [ XX/XX/XXXX ], I received written notification from the GAP provider stating that they were unable to successfully reach Chase and suggested arranging a conference call. 

Due to repeated difficulties coordinating communication between the lender and the GAP provider, I contacted Chase again and was advised that I could submit the required document via fax. 

I submitted the GAP Breakdown / Worksheet via fax in XXXX XXXX, using the submission method provided by the lender. 

In early XX/XX/XXXX, I contacted Chase to confirm receipt. At that time, Chase confirmed that all required refunds had been received, but stated that the GAP Worksheet submission was still under review. 

As of today, despite submitting the required documentation in XXXX and following up multiple times, no updates or account changes have been made, and the case remains pending without resolution. 

Despite the above, my account was not placed in an insurance or GAP pending status. Instead, it was later reported as charged off, while the insurance and GAP resolution process was ongoing. 





Additional Context / Consumer Position I reasonably relied on written confirmation from the GAP administrator stating that the loan was settled in full. Based on this official documentation, I had a good-faith belief that no further payments were due. 

At no point did Chase provide clear written instructions advising me to continue making payments while the insurance and GAP claim were pending, nor did Chase communicate that failure to do so could result in a charge-off.

Given the extensive delays and repeated communication failures between the lender and the GAP provider, I have a reasonable belief that even if I had continued making payments during this period, there was no guarantee that those payments would have been properly credited or refunded. The remaining loan balance at the time was relatively small after my insurance paid vehicle 's market value ( remaining balance was approximately {$2200.00} ), yet the account was handled as if I owed a substantially larger sum, ultimately resulting in a charge-off being reported. 
The charge-off and resulting credit reporting appear to be the direct result of servicing and processing failures, not a refusal to pay or abandonment of the loan. 

Additionally, the original dealership significantly delayed the process, as all required refunds related to extended warranty and ancillary products had to be processed through them before the GAP claim could be initiated. Despite my repeated follow-ups, these delays were outside of my control and directly impacted the timing of the GAP claim.

Impact on Consumer Throughout this entire process, I made consistent and good-faith efforts to communicate with the lender and kept them informed of all developments, including the total loss determination, insurance payments, and the status of the GAP claim. Despite this, my account continued to be marked as delinquent, with each payment reported as missed, without consideration of the ongoing insurance and GAP resolution.

As a result of this handling, the account was ultimately charged off. At the time, due to my lack of prior experience with auto loans, total loss claims, and U.S. credit reporting practices, I mistakenly believed that a charge-off indicated that the loan had been settled or closed. Once I later learned that a charge-off represents a serious negative credit event, I immediately began taking steps to dispute the status and provide the requested documentation. 
As a result of the above, my credit report reflects a charge-off that has caused significant and disproportionate damage to my credit profile, despite the loan being covered by insurance and GAP.

This was my first auto loan and first total loss, and I had no prior experience with insurance and GAP claim processing. Based on the vehicle being surrendered, insurance payments being issued to the lender, and written confirmation from the GAP administrator that the loan was settled, I held a reasonable belief that no further payments were required while the claims were being finalized.

Resolution Requested I am requesting the following : 1. Expedited review and final resolution of the insurance and GAP payoff ; 2. A written explanation detailing why my account was charged off while a total loss insurance and GAP claim were pending ; 3. Correction of all credit bureau reporting related to this account to reflect the accurate status following insurance and GAP payoff ; 4. Written confirmation of the current loan balance, which should reflect {$0.00} if all payments have been properly applied. 


Account Information Lender : Chase Auto

Company response to consumer: Closed with explanation