We purchased a used van in February of this year. We made timely payments every two weeks. Did not miss one payment. In June, we had an accident and the van was totaled. Because of finances we were not able to afford gap insurance, so the payoff amount was not the amount owed on the van.

We contacted the finance company we were dealing with who began dealing with our insurance company for us. Within three days of the accident, the insurance was given a payoff and it was settled with our insurance.

The finance company told us that if we dealt with them on the replacement auto, that they would work with us on our $750 deductable. In the meantime the payment came due on the van that was totalled. We contacted the finance company and were told to make the payment on the van and it would be applied towards our deductable. This was repeated to us twice.

So we did go back through them. We found a replacement in July, less than a month later. We were told at that time that we would figure out the deductable at a later date. It never happened and nothing was ever put in writing about paying off the deductable.

We began making payments on the new van in July. We were current and paid online which gave us online receipts emailed to us for each payment. We also added to our payments to go toward the deductable until it was determined how much was to paid each month.

In October, we received a letter stating they wanted more towards the deductable. So I began making two payments, one toward the car payment and one towards the deductable ( with proper account numbers on each).

At this point, the only letter we received from our finance company was the one letter. No phone calls. We began receiving text messages each week.

A week ago, we received a threatening text saying they were going to repossess our new car because we were behind. We went online, checked receipts, checked bank statements and can prove every payment including each one to the deductable. They have been weekly and regular.

We called the company Monday, Tuesday and then wedensday of this week trying to get ahold of the woman texting us. She is never there.

So my husband spoke with someone else who did some checking and told us our car was not up for repossession. He called a second time and was told the same thing.

Today, once again we received a text from this lady. So he called AGAIN. This time he was actually allowed to talk to her. She told him that we were behind since September and that she had been applying the payments we were making on the new car (mind you I specified account numbers and there is nothing in writing that says she can do this) towards the deductable. Without our knowledge. This has put us behind on the car payment. We had no knowledge that they were going to do this.

Is this legal? What are our rights and what should we do? Legal aid could only tell us to hide our vehicle until this was settled. Ug.

Help!!

It MAY be legal depending on how your contracts were written.

Frankly, what I would do now is get a loan that would pay off BOTH the accounts from a different lender and get your accounts away from them.

The real problem here is that since the car is collateral for the loan, they can repo it without going to court. So despite what one person says the other may act precipitously. I don't think you are going to resolve this amicably with them. That's why I think your best bet is a payoff.

After the problem with the writeoff I wouldn't have went through them again. How did they help with the Deductible? If your deductible was only 750. Did you find out how much your deductible actually is because it sounds like you are paying an awful lot it they are taking the money you paid for both your van and your deductible plus all the money you previously put towards it. Personally if they wouldn't tell me the info I wanted I would go get another vehicle before they mess up your credit and tell them to shove the vehicle. Or talk to a lawyer. Phone the Better Business Bureau also.