I reviewed our banking information online yesterday as usual. I noticed the prinicpal balance of our auto loan had increased $2,679.00 with a line description of "Ins Ln Adv: CPI Insurance". I had no idea what this charge was for. We have NEVER been late on a payment.
Well after 2 1/2 hours on the phone between last night and this morning, it turns out this is forced auto insurance. The auto insurance is placed by the bank to ensure their security interest is insured (the vehicle). The fees are automatically added to the balance of your loan.
Here's the kicker, we gave all of our insurance information to the dealer before we left the dealership with the vehicle. It's a state requirement to provide the information. No problem. We've kept full coverage on the vehicle through State Farm ever since we drove off the car off the lot.
We have a letter from State Farm verifying the vehicle has been insured since we bought it and the premium has been paid in full for the next upcoming months (it shows the actual policy periods), it has the VIN number, policy number, period covered, etc... The letter has also been hand delivered to Chartway.
Well Chartway has refused to remove the $2,679.00 fee as of now. Our agent at State Farm has even said they will speak directly with Chartway as Chartway is forcing double insurance when we have always had insurance in place.
I have no idea who to contact over this. Maybe I contact the Virginia Banking Regulator. I understand the economy is bad but to explicitly take funds from a member's bank account when they blatantly can prove they have always had sufficient insurance is FRAUD. There is no fine print on this, there were no steps missed. We have always had insurance.
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