My mother paid off her car loan in 7/2005, and the bank received her payment before the payoff amount changed. The bank debited the July payment from her account after the loan was paid off, and then issued her a credit the next day. They sent a letter on July 12, 2005 along with a release of lien telling her that the loan was satisfied along with the title. She sold the car in July, 2005. In June, 2007 she received a letter from the bank telling her that she now owes the June 2005 payment and that the release of lien was null and void. She provided the bank with copies of her bank statements showing they debited her June and July 2005 payments, and they're still telling her she owes the payment. She paid off the loan by cashier's check after calling and getting the exact payoff amount. Shortly after she received the release of lien and title, she received a check from the bank in the mail for $6.61 which they said was a refund because the payoff was incorrect. In Jan 2008 the bank debited her bank account for the full payment, and she had the payment reversed at her bank. They debited her account in Feb. 2008 for a different amount and she also had this one reversed. In addition, she had to close that bank account and open a new one to prevent further unauthorized debits. She has talked with them repeatedly and provided them with her proof that their payoff history is incorrect and does not reflect a payment they debited in 7/08. They state they will not correct their payoff history and continue to call her daily threatening to "ruin her credit". They have changed their story now and say that the original payoff was short 1 payment -- which is incorrect using their own payment history. My mother is 82 and quite aware of her finances. She has better documentation for her position than the bank does. What is her recourse, or does she have to endure these daily calls?
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