My son purchased a new 1999 Galant; financed through Mitsubishi Motor Credit of America. It caught on fire and was totaled due to a "manufacturer's defect". Mitsubishi Motor Credit of America settled with my son's insurance comapny, but there was a balance due on the account in an amount close to $5,000.00. After several years of fighting with Mitsubishi to forgive this balance on the car loan, my son finally settled with them and paid $3,700.00, leaving a -0- blance on the account. My husband co-signed for my son and both of their credit ratings were destroyed because of this. The settlement took place in December. Now on their credit reports, instead of having a -0- balance there is a "past due balance" of $822.00; which is still ruining their credit. Mitsubishi is trying to force one of them to pay the $822.00 in excess of the settlement they agreed to.
In the first place, after setteling with the insurance company, they should have zeroed out the balance on the loan, afterall it was their defect that destroyed the car; secondly they should be fair and honest and report the correct information to the credit bureaus and not continue ruin people's lives.
My husband and I are trying to get a home equity loan, and this detail on his credit report to keeping us from getting a really good rate. Plus it is very stressful knowing that this finance company can virtually control your life by reporting these untruths and practicing unscrupulous methods to force money out of hard-working honest people.
In reality, my son paid several thousands of dollars for nothing but a pile of ashes, I would advise anyone who wants to buy a Mitsubishi to look for financing elsewhere.
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