Auto Contract

[Elsa Flores]

Jurisdiction

California

My leased vehicle was totaled in an accident in December of 2021. The lease with option to buy contract was up in June at which I was going to pay in full the remainder of the balance of the vehicle to buy it and have the title.
Firstly, the pay off check was sent to the Finance company unbeknownst to me. I asked my insurance company to cancel the check and they refused.
I owe 9,900 on the vehicle. The insurance company sent them 14,700. I called the finance company to make arrangement for the overpayment. The gentleman I spoke to said there wouldn't be a pay off. He said Volkswagen passively accepts overpayment of vehicles all the time and does not reach out to reimburse their consumer. So. Can someone help me? I know it's illegal for them to keep overpayment. What kind of attorney do I need? Is it worth the litigation?

 

[adjusterjack]

Reopened and deleted the unnecessary comments.

Firstly, the pay off check was sent to the Finance company unbeknownst to me. I asked my insurance company to cancel the check and they refused.
I owe 9,900 on the vehicle.

The claim rep should have determined the exact payoff and issued two checks if necessary. You might bring the issue up to the claims management. Might not be too late to get the payment stopped and reissued. If not, file a complaint with the insurance department. Probably won't help you but it'll be on the company's record with the department.

I called the finance company to make arrangement for the overpayment. The gentleman I spoke to said there wouldn't be a pay off. He said Volkswagen passively accepts overpayment of vehicles all the time and does not reach out to reimburse their consumer.

That's unacceptable. If this was VW's own financing department you can escalate your issue to corporate. Here are some contacts. I don't know how current they are. You can try emailing one at a time to see who sticks.

Executive Contacts
Secondary Contact
Patrick Coyle
Vice President
2200 Ferdinand Porsche Dr.
Herndon, VA 20171
Patrick.Coyle@vw.com

Duncan Movassaghi
Executive Vice President of Sales and Marketing at Volkswagen of America, Inc
2200 Ferdinand Porsche Dr.
Herndon, VA 20171
Duncan.Movassaghi@vw.com

Chief Executive
Scott Keogh
CEO and President of Volkswagen Group of America, Inc. and head of Volkswagen brand in North America
2200 Ferdinand Porsche Dr.
Herndon, VA 20171
scott.keogh@vw.com

What kind of attorney do I need?

Any attorney that practices consumer law if it comes to that.

Is it worth the litigation?

That's a decision only you can make. Initial consults with an attorney are usually free, if it comes to that. An attorney can review your situation and advise you.

 

[Zigner]

This was a leased vehicle, not a financed vehicle.

 

[justblue]

This was a leased vehicle, not a financed vehicle.

Exactly. Leased with an option to purchase. Which, seemingly, OP did not do.

 

[adjusterjack]

This was a leased vehicle, not a financed vehicle.

I never said it wasn't, did I?

From VW's website:

"Once the Lease Agreement is executed, it is assigned to a finance company who is then responsible for servicing your account."

Understanding Your Lease Agreement.pdf (vw.com)

If the amount sent to the finance company of the vehicle was more than the purchase price of the vehicle then the claim rep should have determined the payoff and written separate checks.

Exactly. Leased with an option to purchase. Which, seemingly, OP did not do.

Her insurance company purchased it.

 

[Zigner]

I never said it wasn't, did I?

From VW's website:

"Once the Lease Agreement is executed, it is assigned to a finance company who is then responsible for servicing your account."

Understanding Your Lease Agreement.pdf (vw.com)

If the amount sent to the finance company of the vehicle was more than the purchase price of the vehicle then the claim rep should have determined the payoff and written separate checks.



Her insurance company purchased it.

She doesn't "own" the car and is not entitled to the payoff.

 

[zddoodah]

Firstly, the pay off check was sent to the Finance company unbeknownst to me.

Of course it was. The finance company is the owner of the vehicle, and the insurance pays the owner. That's what your policy says, and there would be no reason to notify you.

I asked my insurance company to cancel the check and they refused.

Of course it did. On what basis did you think it ought to be canceled?

Can someone help me?

Help you do what?

I know it's illegal for them to keep overpayment.

You know this? What law do you think makes this illegal? For that matter, why do you think payment of the vehicle's fair market value is an "overpayment"? The balance on your lease has nothing to do with the vehicle's value.

What kind of attorney do I need? Is it worth the litigation?

You don't need any attorney, and there's nothing to sue over.

Perhaps you simply don't understand the concept of leasing. You don't own the car. The finance company owns it. All benefits get paid to the finance company. Your obligations under the lease should be terminated. You're not entitled to anything. That you had a purchase option at the end of the lease (which you hadn't yet exercised) is irrelevant.