Auto Loans New Loan Company trying to enforce new conditions

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gbbarry

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MY auto loan was recently sold by the original loan company to a new loan company. The new loan company sent me a letter with the following paragraph:

Your loan agreement requires you to have comprehensive and collission coverage with a maximum of $500.00 deductible and Challenge Financial Services listed as the lienholder/loss payee on the vehicle. If you do not provide this insurance, we may add the cost of insurance to your loan balance.

My issue is that the loan agreement clearly states that the required deductible is $1,000.00 not $500. While verbally acknowledging this and stating they will not pursue additional insurance despite the statement in the letter they refuse to issue a correction to the letter. Also, they always start the discussion with 'It doesn't matter what your loan agreement states the 'bank' requires a $500.00 deductible. When questioned they have confirmed that by 'bank' they mean themselves.

Can they (i) charge me for additional insurance and thereby change the terms of the loan without my agreement and (ii) refuse to send a letter confirming their mistake in the original letter?
 
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