Motor loan settlement figure

[Petermack]

Folks,

My wife rang and requested a settlement figure from VW bank for her car loan and was quoted a figure of €7,500 euro. The actual outstanding amount was close to €9,000 but the settlement amount was €7,500. She was given the details of the bank account to transfer the money to if she wanted to settle by direct debit. When she tried to transfer the money from her AIB a/c she was told that AIB have a limit of €5000 that can be transferred daily, so she made the payment in 2 payments, 1 of €5000 and 1 of €2500.

She was of the opinion that this was full and final settlement of the loan and requested that AIB cease the direct debit to VW bank. She also sent a letter to VW bank informing them that the loan has been settled.

She has now noticed that VW bank are still taking the monthly repayments from her a/c and when she rang them they have now stated that settlements must be paid in a single payment and that there is still €1500 outstanding from her car loan. Can my wife demand the payment of €7500 back from VW bank and seek a new settlement figure.

 

[walletpod]

Did you receive the notification of the outstanding amount and how to clear it from the bank in writing?

 

[Petermack]

Did you receive the notification of the outstanding amount and how to clear it from the bank in writing?

Yes she received in writing the amount outstanding less the rebate being offered by the bank. The letter also stated the account details of the bank. Lastly there was also a date as to which the settlement expired, which was after my wife made the settlement. After that there was a note at the end stating that normal loan terms & conditions apply.

 

[walletpod]

Unless one of the terms in the letter stated that you had to settle the outstanding rebated amount in one amount then I do not see what the problem is. Unless of course there is something detailed further in the terms and conditions that the offer letter refers to. If there is not, then you have met the conditions of the offer (i.e. settled the rebated amount in lieu of the total outstanding amount) and the loan has now been repaid.