I'll use generic numbers to keep it simple. My car was totaled. My amount due based on contractual payoff was $17k. My insurance company valued the car at $15.5k, and paid that to my financial institution. I then filed a gap claim through my gap insurance to pay the difference. No problem.
I get a letter back from my gap insurance company saying that my gap balance was negative (-$500). I'm confused as I also get a letter from my financial institution saying that I still owe about $1.5k on the car. After some phone calls, I figure out that the $17k I owed included cancellable products with my car dealership, that I was supposed to call and have refunded. This ended up being about $2k, which the dealership sent over to my financial institution. Now my financial institution is sitting with $17.5k of payments from my total loss, when I really only owed them $17k. That's where the negative gap balance comes in, of -$500.
I was making on time payments for years, even a little extra than minimum to pay the car off quicker, and now it seems like that was a wasted effort since the car was totaled. Do I have a right to that $500 difference that my financial institution got to pocket?
Submitted October 23, 2018 at 09:03AM by justinsucksass https://ift.tt/2Cw32qN
