ComplaintsforLone Star Credit

• Initial Complaint

  01/28/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  You put a repo on my credit report for a car I had gap coverage for. ***** ******** was the recovery agent assigned that was little to no help what so ever. I gave him email and voice authorization to discuss matter with my wife because she was the one involved in accident and was on the insurance. I want to know why you believe I have a balance on this loan if insurance paid total loss and gap covered the rest.

  Business response

  03/09/2022

  Business Response /* (1000, 5, 2022/02/10) */ We received notification from the City of Dallas auto Impound on 9/8/2017 that our vehicle was impounded due to vehicle being involved in accident. 9/21/2017 - We were notified of the Ins Agent info ESIS Insurance. The insurance companies would not settle the claim because a third-party insurance was involved, and they were trying to determine fault. The third-party insurance involved refused to accept responsibility to pay so the members wife ******* retained an attorney since she was the one driving. On 10/2/2017, we were notified by the Dallas Impound that the vehicle was going to be sold in a public auction on 10/9/2017 if not picked up. Normal process is the insurance will pick the vehicle up and move to another collision center or total loss the unit within 3 weeks. Our repossession agent worked from 10/2 to 10/10 to get into the Dallas Impound to secure the vehicle. The agent was not allowed into the impound each day because their computer system was down not allowing updates and releases. On 10/10/2017, the agent was told by the Dallas Impound that the vehicle was sold on 10/9/2017 per the notification that was sent out. There was no ability to get the vehicle back. Unfortunately, the insurance company never went to do their inspection up to that point either. On 10/17/2017, we were notified that based on the police report the wife who was driving was not insured nor had a driver's license. Our collector tried to assist the member with the insurance company, there were no pictures taken by Dallas Auto Impound of the auto before it was sold to assess the full damage, the only pictures were the three the wife took at the scene of the wreck. These were forwarded to the insurance company on her behalf. On 10/20/2017, the insurance adjuster responded back that the photos were forwarded to the claim's adjuster for final review. On 10/25/2017, ins adj calls back and says based on the photos the damages appraised out at $7139.98, they could not total out the vehicle. Collector reviewed with mgmt. and CU accepts ins claim for settlement. On 10/25/2017, wife calls back upset we accepted settlement from insurance company when she refused it, she wanted a full total loss. From 10/25/2017 to 12/14/2017 everything is on hold is waiting for the attorney and member to decide if total loss settlement will be accepted and a discussion on filing a GAP Claim. On 12/14/2017, the members attorney gives the approval to move forward with the settlement for a total of $6416.91. Gap claim is filed that day. On 1/09/2018, we received the settlement check from the insurance company in the amount of $6416.91, leaving a balance of $6631.98. On 2/9/2018, we were notified by GAP that the Mechanical breakdown part of the claim will not pay due to the high mileage of the vehicle, outside guidelines. We were advised the review process was still underway for the rest of the claim, but no dollar amount has been determined at this point. On 2/27/2018 we rec'd a check in the amount of $2,147.45 from Gap payment. This left a balance of $4,568.47. Loan was charged off 09/20/2018. We believe the Member was never notified that the GAP did not cover the entire balance and pay the loan in full. Because of this review and not being communicated to the Member we will error on the Member side and reverse the termination of Repo to a charge off deficiency balance. Our current Member Solutions Advocate will contact him.

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