I re-financed my car through Wachovia last April because I was tired of being screwed around by Wells Fargo (boy was that a mistake). I got in a major car accident in Miami that was not my fault this past August. The car was totaled and Esurance paid the value of the vehicle within a week (actually more than what Kelly Blue Book said it was worth). I had also gotten GAP insurance through OwnerGuard when I originally financed through Wells Fargo. My car payment was due about two weeks after the accident so I didn't bother making the payment as I knew the car would just be paid off before then anyways. Wachovia failed to tell me that the GAP insurance would not cover the ridiculous re-fi fee (which I was also unaware of) if the car was totaled. They also failed to mention to me when I re-financed that the GAP insurance wouldn't cover the new interest either. So after waiting while OwnerGuard took A MONTH to process the claim, my Wachovia account still had a balance of almost $700. This was confusing to me as I was under the impression GAP insurance was supposed to pay off what the insurance didn't.
For some reason even though the value of the car was paid, they apparently didn't count that as a payment. Nor did they count the GAP claim when it was processed a month later as a payment. $9,000 of the loan had been paid and none of it counted toward my payments, so my account was almost two months past due. I was forced to payoff the remaining $700 on a car I no longer had. When I made the final payment the man I spoke with was very friendly and assured me that it would look good on my credit that I paid off the final amount.
I checked my credit report a month later and sure enough under the negative items section was my Wachovia account with no mention of the delay in the insurance claim. I placed a comment on there myself but I doubt it will do any good.
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