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I paid the balance in full on a car loan. The bank says I still owe them a balance. Can they make me pay?

I paid the balance in full on a car loan. The bank says I still owe them a balance. Can they make me pay? Topic: Write letter demanding payment
June 25, 2019 / By Cressida
Question: My grandmother was on the loan. She wrote a check(that cleared) for the amount the company (big name) said was the balance. Now they say that it was not the balance and are threatening to take me to court. I have the title that is in my name (that they sent) and she has a paid in full letter. It has also showed up on my credit report. What can they do to me? After looking into further, My Grandmother paid a couple of notes over the phone. After the call she realized the person did not did not state who she was. She immediately went to the bank(same day) and canceled her account, reopened another one and called the bank back for the balance and paid it off. I guess the balance was after the initial notes paid but the check had not cleared and she told the bank what she did. Is the bank at fault for the amount of the balance remaining. The lady that called me today says that the bank cannot keep that accurate of records. The bank is one with a high reputation. She also through some laws that the bank could use against me but could not tell me which laws they were.
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Best Answers: I paid the balance in full on a car loan. The bank says I still owe them a balance. Can they make me pay?

Betsy Betsy | 4 days ago
If they sent a letter stating you are paid in full, send a COPY of the letter, along with s COPY the the demand for payment to wherever they want you to send the payment. Include a note that says THEY will supply you copies of your credit report from all 3 bureaus showing the item has been removed within 10 days, or you will sue THEM. Send this Certified mail, Return Receipt Requested.
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Betsy Originally Answered: How to analyze a balance sheet if you were working in the credit department of a bank?
First, look at the income statement to see if profits are growing. If not, then maybe at some point the company doesn't even generate a profit, and the bank shouldn't give the loan. You should look back at least 3 years, and a minimum of 5 years. Get the year-to-date period as well. Have financial statements at least compliled from an accountant, although this only means that the accountant aggregated data from the company. Reviewed or audited statements are best, because the auditor did work to veryify the authenticity of the numbers. Are sales growing? If yes, then this is good, as long as the company's gross profit margin isn't falling too fast. And if sales are of commodities, are higher sales merely reflecting the fact that a key commodity input has increased in value? If so, then this doesn't reflect growth, just higher cost of sales. Think sales unit growth on this one. Look at the gross margin (cost of sales / sales) over the time periods that you have. Increasing margins are good because they mean increasing profitability, all else eqal. Decreasing margins reflect the opposite. Incidentally, an increasing margin or an above-peer group margin can be indicative of brand strength. For instance, women pay way above cost for high-end brand names, but not so far above cost for low-end brand names. Look at expenses/sales. If this is increasing, find out why. Maybe sales units have been growing so fast that the company has had to expand the company by acquiring more equipment and employees. If it is decreasing, then that can be a sign of good management, because they are really focusing on improving profits through prudent expense management. Look for high tax rates in one or two of the periods. They are often anomolies, and maybe you want to figure out if they are actually more likely to be lower going forward. Calculate cash flow. There are different ways to do this, and maybe you just want to google for this. One way is to start with net income, add back amortization and non-cash expenses, and subtract non-cash income. Don't add back depreciation, because the company should be reinvesting this back into the company -- i.e., as it uses up assets, it should replace them. There can be some exceptions for this, but not adding back depreciation is most conservative. Cash flow should cover principal and interest at a ratio of at least 1.25x. Otherwise, the loan is too large. Maybe the loan term can be extended to help this, but not extended beyond the ecnomic life of the asset financed. Balance sheet ratios -- you are concerned with leverage. Debt-to-equity. Also, you are concerned with current assets to current liabilities. Higher is better, because the company is then more liquid and better able to come up with the cash to pay the loan sooner. Also, what is the collateral? Maybe this is strictly a loan based on cash flow coverage (which would then need to be high for protection) or maybe the loan also has collateral. If the collateral is real estate, don't lend over 80%. If it is for inventory, don't lend above 70% to 80%, and maybe lower. If you are financing seasonal, trendy items (clothing) or technology, then passage of time can seriously devalue the collateral for good. Maybe leave a cushion of financing 50%. Covenants. You need these as well. Do a search on commercial loan covenants and you can probably find them. Leverage ratios are important. If the company makes leverage too high, then the bank should be able to call the loan in and demand full repayment (a negative covenant). The borrower should provide quarterly statements that are prepared by an accountant (positive covenant).

Agnus Agnus
How much do they say is left? If you just paid the balance you probably still owe a little because the interest was still compounding. If you want to pay off a loan you have to call and they will give you a payoff amount. If the amount they say you owe is just a small amount, that's accumulated interest. If they sent you the title and she has a letter saying "paid in full", they're out of luck even if they did make a mistake. Open a dispute with the credit rating agencies saying that they said the debt was paid and give them a copy of the letter. They will then go back to the lender and ask them to prove you owed money. With a letter saying the loan was paid, they're unlikely to be able to convince the credit rating agency, and it should be removed from your credit report. With their threats about taking you to court you might consult an attorney, or if you feel lucky wait and see if they're bluffing. With a title to the car and letter showing the loan paid off a judge probably will not be impressed by the strength of their case. But I'm not a lawyer!
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Timo Timo
If you have a "paid in full" letter from the company that gave you the auto loan and you have the title in your name, I don't see how they can do anything to you. You do need to contact the credit report company and tell them what has happened. You have the documents to prove the debt has been discharged and they should remove the loan company's black mark on your credit report. Good luck!! : /
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Ranald Ranald
the guy that wrote the examine no is on the hook. The economic enterprise ought to have waited until eventually the examine replaced into paid in the previous issuing the call and the paid in finished assertion. they might have some recourse against you, it relies upon on the state and native regulations. seem at it this way- in case you purchase a television from superb purchase and write them a bad examine, is the television somewhat yours?? NO, by way of fact it replaced into never paid for. this is somewhat helpful to seek for suggestion from an lawyer, the economic enterprise would have some recourse against the vehicle and you, or, they might go after the guy that wrote the examine. In maximum states a examine that length this is NSF is a criminal and can be dealt with to that end.
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Marquise Marquise
It could have been the balance but a small compounded amount may be due.........try to work with the bank......if they are big time they can make your life ugly........
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Marquise Originally Answered: How often do you balance up your checkbook?
I only write one check per month: my rent check. Anything that _has_ to be mailed off, such as requesting transcripts from a school I went to or requesting documents for my genealogy hobby, I pay by money order. That way, it's a withdrawl that hits that same day, and not a check that may be processed at any time. All of my utilities can be paid online, my car insurance is paid over the phone with my check card, groceries/clothes/etc are all paid on the check card. A tip: when you have the choice of running something as debit or credit, choose debit. This makes it post to your bank sooner, and you'll have the most up to date balance possible. That said, I don't have to balance anything except when I go online I may have to remember "that minus rent." It totally works for us!

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