Consumer complaint received 2025-04-30 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: Volvo Car Financial Services U.S., LLC
State: CA

Complaint narrative:
I am filing this complaint against Volvo Car Financial Services for mishandling my auto loan payments and failing to notify me of a payment reversal in a timely and reasonable mannerresulting in the potential for incorrect and highly damaging credit reporting. 

Background : On XX/XX/year>, I submitted a loan payment through Volvo Car Financial Services portal using updated banking information following the bank transition from XXXX XXXX XXXX  to XXXX XXXX ( XXXX purchased XXXX ). 

On XX/XX/year>, the payment was returned due to a routing number issue, as I had the wrong XXXX routing number was used in lieu of XXXX routing number. 

I received no email, text, or voicemail alerting me to the returned paymentonly a mailed letter that did not reach me until it was too late. 

On XX/XX/year>, I received a phone call from Volvos servicing team stating I had missed my XXXX payment. No mention was made that my prior payment had been reversed. Instead, I was led to believe that no payment attempt was made whatsoever. This was patently misleading. 

In response, I immediately submitted another payment covering both XXXX and XXXX, again using the same banking information ( still unaware of the routing number issue ). 

That second payment was returned on XX/XX/year>. I received no prompt communication regarding the failure. 

On XX/XX/year>, after a second phone call from the servicing team, I was finally made aware that both payments had failed due to a routing mismatch. I corrected the information and paid off the loan in full that same day.

Core Issues : Failure to Inform : I was never informed in a timely, clear, or effective manner that my XXXX payment had been returned. Volvo uses phone calls for collection but not for flagging failed paymentsrelying instead on mailed letters that can take weeks to arrive. 

Preventable Harm : Had I been told that my XXXX payment was returned ( rather than merely unpaid ) on XX/XX/XXXX, I could have corrected the issue and avoided the XXXX reversal entirely. 

Volvo Car Financial Services has stated that it intends to report both my XXXX and XXXX payments as missed to the credit bureaus. This action is grossly misleading and unjust, given the circumstances. I made timely payment attempts on both occasions, and the only reason those payments were reversed is because I was never properly informed that the original XXXX payment had failed due to a routing issue. I was led to believe I had simply forgotten to paynot that a transaction had been rejected. 

The company had every opportunity to notify me through email, text, or voicemailbut chose not to. Instead, they relied on a mailed notice that took over XXXX weeks to arrive, during a reporting window of only 30 days. The fact that they use phone calls for collections but do not extend that same urgency to informing customers of payment reversals is both inconsistent and irresponsible. 

If this inaccurate information is reported, it will cause material and lasting damage to my credit score, affecting my ability to access favorable financial terms or even professional opportunities. I view this as a failure of both operational process and fair credit reporting. I expect this inaccurate derogatory reporting to be withheld or removed immediately, and for Volvo Car Financial Services to take corrective action consistent with the Fair Credit Reporting Act ( FCRA ). 

What is most troubling is that Volvo Car Financial Services has been made fully aware of the mistake prior to the scheduled credit reporting date. I have contacted their servicing team, explained the situation in detail, and provided context showing that the missed payments were not due to neglect or inability to pay, but rather to a known clerical routing error and a complete failure in their customer notification process. Despite this, they have not indicated any willingness to prevent or retract the reporting. Their decision to proceed with negative reportingdespite actual knowledge of the circumstancessuggests not just negligence, but a willful refusal to correct a preventable error, in clear tension with their obligations under the Fair Credit Reporting Act.

What I Am Requesting : Immediate prevention or removal of any negative credit reporting related to XXXX and XX/XX/year>. 

A review and update of Volvos payment reversal notification practices to include faster, digital communication ( email, text, or voicemail ). 

Confirmation that my account will not reflect derogatory marks as a result of this avoidable and misleading sequence of events. 

I am happy to provide all documentation, including payment screenshots, bank records, and call logs, to support this complaint.

Company response to consumer: Closed with explanation