What can I legally do if they are drafting an amount more than what we have on contract? 6 Answers as of March 21, 2014

My auto loan was set up for a loan amount of $14996. My contract stated that my payment was to be $351 a month and it was set up on a draft to be broken down on the 1st and the 15. I recently have gotten notice from my bank that $384 was being drafted out of my account and that it had been causing over draft and that it was coming for my auto loan. I call the auto lender and they told me that I was only paying $351 and that a third party was in and they had no idea. To make matters worse, I went and checked my credit score and it had dropped dramatically due to late payments from my loan. I have never been late because the money was being drafted. The lender drafted it out on the 16 and the 3 and then reported it as late and that damaged my credit but I have proof of payment in my bank statements were the money was. They just chose to draft it out late.

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SmithMarco, P.C.
SmithMarco, P.C. | Larry P. Smith
This can violate the Electronic Funds Transfers Act. But we would need to review this more to determine if this is so. Contact my office for a free case review.
Answer Applies to: Illinois
Replied: 3/21/2014
James T. Weiner & Associates, P.C.
James T. Weiner & Associates, P.C. | James T. Weiner
Its complicated but you can sue the lender.
Answer Applies to: Michigan
Replied: 3/20/2014
Westgate Law
Westgate Law | Justin Harelik
This seems like an excellent Fair Credit Report Act case and Fair Debt Collection Act case. You appear to have good information as to what the creditor did wrong. You need a law firm that handles these type of cases. Price Law Group handles them on contingency. I used to work for them and I know they love this type of creditor bad conduct cases.
Answer Applies to: California
Replied: 3/20/2014
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
First attempt to have the payments corrected. That done have the lender send an explanation to the credit bureaus explaining and seek correction of the record. If you cannot accomplish that on your own hire and attorney to assist you.
Answer Applies to: Michigan
Replied: 3/20/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You may want to talk to an attorney about suing the creditor under the FCRA (fair credit reporting act).
Answer Applies to: New York
Replied: 3/20/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    There may be a violation of the Electronic Funds Transfer Act, but it is not clear by whom. You should complain in writing to both your bank and the auto loan company. Meanwhile, I suggest using a different method of payment.
    Answer Applies to: Illinois
    Replied: 3/20/2014
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