How long after buyback closing is a bank loan paid off?

TDIsoup

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Oct 28, 2016
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Texas
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2013 Passat
I guess for those with loans with outside banks, VW doesn't gain much by delaying payments on the loan. But for those with VW credit loans it's messed up that they are delaying. For me it's about $2 a day in interest. 5+ business days is really 7+ days in interest. So for me they are squeezing out at least another $14 in interest provided they pay it off by then. If it goes longer which it seems like it is for others, that number just goes up. Plus they are holding the money that they should be paying my loan with, earning interest I would imagine. Just a messed up situation that there is no penalty for them delaying on this part. Since there is quantifiable costs that we as the ones on the hook for the interest are incurring. 5th business day for me is Tuesday. I will be on the phone at that point with the claim line. And an email and call to the attorneys will happen too. Such bull****.

Yep, the 5 business days have also passed for me, and I can show the interest accrued as I have been taking screen shots daily to show it changing. I'll be on the phone tomorrow or Tuesday with an attorney as I'm not allowing VW to play with my credit, nor penalize me with accrued interest.
 
Joined
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East Bay Area
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My buyback was done 12/19 @ 2:00 pm. EFT dropped 12/21 when I checked online. December 2016 VW Finance loan payment was due 12/23 which I did not pay. As of 12/23 loan is still outstanding and VW finance website shows I now owe 2 months of payments! I will check again next Tuesday to see if loan has been paid off!
 

Mr. Furious

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North Carolina
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The timing should work out for me. My payment due date is the first of the month, and my buyback is on 2/2. My CU has a ten-day grace period, so as long as the deposit happens in that five-business-day window I'll be fine. I'll keep an eye on it and keep the payment amount at the ready in case day 10 rolls around and it's still not there.
Well, so much for that, thanks to the random loss of my scheduled appointment. I'm now scheduled for 2/7, so I'll definitely have to make that February payment.

I have to say, I'm impressed that VW can find exciting new ways to screw us over.
 

jtdid

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Dec 5, 2016
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Maryland
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Golf SportWagen TDI
Still at 4 business days (but 7 calendar days) with no payoff. FYI today, December 26, is considered as a bank holiday by many banks, since Christmas fell on a Sunday this year. So today likely doesn't count toward the 5-business day loan payoff period.
 

Fitzwilly

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Aug 23, 2013
Location
Coburnville
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2012 Golf TDI 4dr
As much as I'd like to play tough guy with VW credit regarding interest and not paying the 12/26 payment with a turn-in receipt from 12/23; we have to get a new car for my wife in January. I'm not risking a ****ty interest rate with a credit ding for non-payment. I have worked way too hard to keep my rating stellar with 2 mortgages that it's not worth flexing nuts to a corporation that gives zero ****s. I'll get my two over-payments back and fight them for the interest at a later date.


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yehaman

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Sep 6, 2012
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Boston
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2012 Passat TDI SEL
Per the settlement agreement, how long does VW have to pay off the loan once the buyback has been completed?
 

j-bone

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This is very upsetting my monthly payment is due the 28th my buyback is the 30th thought I could use the grace period....
is this only with lein holders other then vw credit ?
I'm building my credit and don't want vw to screw it up .... I should know better shame on me .
 

DanB36

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Jul 13, 2003
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Savannah, GA
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2014 Q5 Prestige TDI, Monsoon Gray
I would not suggest that you bank on VW paying off the car within your grace period. Either make the payment, or talk with your lender about deferring the payment--as has been discussed in one of these threads, that's a pretty common thing for a lender to do.
 

j-bone

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I would not suggest that you bank on VW paying off the car within your grace period. Either make the payment, or talk with your lender about deferring the payment--as has been discussed in one of these threads, that's a pretty common thing for a lender to do.
DanB i'm assuming your loan isn't paid off since your still hanging around on the forums?
 

DanB36

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I still have two cars to go back, and haven't decided what I'm going to do with the A3 yet.

Edit: ...and the one financed car that's gone back (on 12/15) hasn't been paid off yet.
 

j-bone

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I'll call vw credit tomorrow and see about deferring Decembers payment since it shouldn't affect my credit score .
Thanks for the tip.
 

Fitzwilly

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Got the Chase email last night at 8:26PM, money was in my account this morning by time I got home from work at 8am


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DanCsTDI

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Location
New York
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2015 Golf TDI
Got the Chase email last night at 8:26PM, money was in my account this morning by time I got home from work at 8am


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Yea. I have to say the whole wire thing was fast for me. Had the money within 36 hours of turning in my car. I can't believe they are delaying paying the loan. I mean I can believe it. Just that since the other part was done so quickly I am surprised that the loan part is taking so long. Especially with VW credit since it sounded like their credit area was preparing for this.
 

JGEO

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Sep 27, 2016
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Kansas
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2014 Passat TDI
So my buyback went down on 12-23, received chase email last night at 7:30 pm central. Filled out the info and the money was in my account this morning in a non chase account. Now, VW did just pay me the amount based on their original loan payoff value. So now I wait for them to pay VW finance and cut me a check for the $1800 overage, assuming I don't have to make the January payment as well. Who knows how long that will take?
 

DanCsTDI

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Location
New York
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2015 Golf TDI
So I just called them. They said that a check was cut to my lender sometime after the 21st (I turned the car in on the 20th). They said allow up to 2 weeks for my lender to process it. I was told that I do not need to make payments any more. Now I had sent an email to VW Credit regarding my last payment, which was on the 18th. I sent it a few days before that, and they just replied to me yesterday (Yea, 10 days to get a response from them, how nice). They said that once I am no longer the owner of the car, I don't need to make any payments, but if I was still the registered owner, I had to make payments. Makes sense, but I wouldn't trust them to do the right thing in this case.

Once my loan is paid off, I will add up the additional interest I incur. I'll be sending that over to VW claims and the lawyers, and requesting reimbursement for that. I know it will be a small amount, and I probably will not get a penny of it, but I will be sure to cost VW at least that amount in what they will pay, responding to my messages. I would encourage others to do the same. Maybe if enough of us stir up trouble and bring this to attention, with quantifiable interest amounts, it will force VW to deal with future buybacks in a more timely manner.
 

Buddenlee1

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Riverside
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2014 beetle
So I just called them. They said that a check was cut to my lender sometime after the 21st (I turned the car in on the 20th). They said allow up to 2 weeks for my lender to process it. I was told that I do not need to make payments any more. Now I had sent an email to VW Credit regarding my last payment, which was on the 18th. I sent it a few days before that, and they just replied to me yesterday (Yea, 10 days to get a response from them, how nice). They said that once I am no longer the owner of the car, I don't need to make any payments, but if I was still the registered owner, I had to make payments. Makes sense, but I wouldn't trust them to do the right thing in this case.

Once my loan is paid off, I will add up the additional interest I incur. I'll be sending that over to VW claims and the lawyers, and requesting reimbursement for that. I know it will be a small amount, and I probably will not get a penny of it, but I will be sure to cost VW at least that amount in what they will pay, responding to my messages. I would encourage others to do the same. Maybe if enough of us stir up trouble and bring this to attention, with quantifiable interest amounts, it will force VW to deal with future buybacks in a more timely manner.
Does vw credit want a fax off proof that you have givin up the car? Because when I've spoken with them they do not communicate with billing. Customer service will tell you one thing and they admitt that they dont communicate with billing. So they still may charge you and report you. I called about deferring a payment but you have to have made 10 payments before they let you. I bought mine in may 2016. My appointment on jan 18th (wed) my payment due on 22nd. I dont know who to trust anymore and im just so tired and sressed out.
 

Buddenlee1

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Oct 27, 2016
Location
Riverside
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2014 beetle
So I just called them. They said that a check was cut to my lender sometime after the 21st (I turned the car in on the 20th). They said allow up to 2 weeks for my lender to process it. I was told that I do not need to make payments any more. Now I had sent an email to VW Credit regarding my last payment, which was on the 18th. I sent it a few days before that, and they just replied to me yesterday (Yea, 10 days to get a response from them, how nice). They said that once I am no longer the owner of the car, I don't need to make any payments, but if I was still the registered owner, I had to make payments. Makes sense, but I wouldn't trust them to do the right thing in this case.

Once my loan is paid off, I will add up the additional interest I incur. I'll be sending that over to VW claims and the lawyers, and requesting reimbursement for that. I know it will be a small amount, and I probably will not get a penny of it, but I will be sure to cost VW at least that amount in what they will pay, responding to my messages. I would encourage others to do the same. Maybe if enough of us stir up trouble and bring this to attention, with quantifiable interest amounts, it will force VW to deal with future buybacks in a more timely manner.
Do you think we can show release of liability from dmv
 
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traction

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Aug 17, 2014
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Renton
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2012 JSW
When I called VW Credit they said until my account shows no balance I am responsible for the payments and "not to worry" because any overages will be sent back to me. This makes sense. They also offered to tell me that you can defer payment until 10 days after your due date before being charged a late charge, then 30 days until their system automatically reports to the credit bureau.
 

j-bone

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I just called to defer my December payment, I explained the situation.
No issues about deferring , no fees or penalties.
This is the safest way to protect yourself.
I was told the same about 30 days till it's reported to the credit bureau.
 
Joined
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Location
East Bay Area
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My buyback was done 12/19 at 2:00 pm in San Francisco. EFT from Chase arrived evening 12/20 and funds were in checking account first thing in the morning of 12/21. My December 2016 payment with VW credit was due on 12/23 which I did not make thinking the loan would be paid off within the week. Well as of this morning, the VW Financial Website shows I not only owe the December 2016 payment but the January 2017 payment! I called VW Financial and explained that the car had been turned in on 12/19. The woman asked me to call the TDI hotline and I told her I had done so last week. She said that I should continue to check the VW Financial website to see if the loan has been paid off. She said I should make the payment if the loan is not paid in full within 10 days of the original due date or they would add a late payment charge. I have set up an auto payment for 12/30 to cover myself with the New Year's Holidays. I will check the VW Financial website daily to see if the loan is paid in full so I can cancel the auto payment.
 

wayfarer613

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Joined
Dec 22, 2016
Location
Manhasset, NY
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2013 Jetta TDI I4
I called VW Credit today; no sign of the payment yet, and when all is said and done, the settlement payoff will pay the equivalent of about two payments (the 11/26, 12/16), plus an extended warranty cancellation over the actual balance due on my VW Credit account.

Anyway, the one good thing was, in talking to the VW Credit rep, he assured me it was no problem to drop the insurance coverage required by the loan since I've turned in the car. I hope he wasn't just winging it - guess I'll find out tomorrow when the coverage officially ticks over to the replacement for my TDI: a 2017 Highlander. At the very least, I asked him to make an account notation about the call re: insurance.

Will post when the payoff comes. I had a 12/21 buyback, the 5 business day mark for me is Friday-ish. I'm not expecting it until 2017, though.
 
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DanCsTDI

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Oct 15, 2015
Location
New York
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2015 Golf TDI
Does vw credit want a fax off proof that you have givin up the car? Because when I've spoken with them they do not communicate with billing. Customer service will tell you one thing and they admitt that they dont communicate with billing. So they still may charge you and report you. I called about deferring a payment but you have to have made 10 payments before they let you. I bought mine in may 2016. My appointment on jan 18th (wed) my payment due on 22nd. I dont know who to trust anymore and im just so tired and sressed out.
Do you think we can show release of liability from dmv
I should have specified in my post. I spoke to the claims hotline this morning. Not VW Credit. The email I got from VW Credit had very little information in it. Over 10 days to reply and it seemed like a copy and paste job. I didn't call them yet. I'll give it until the end of this week, then I am going to start calling and emailing everyone.
 

PacCoastFwy923

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Do you think we can show release of liability from dmv
Release of Liability is not intended for releasing you from your loan. It's to notify the DMV in the event traffic tickets, uncollected tolls, accidents or abandoned vehicle reports happen after you let go of the car, so they're not attributed to you.

Your loan remains your responsibility until it is paid in full and closed. You can't transfer a loan to another party.

If it comes to getting attorneys involved, the Release of Liability filling could be used to help establish your case, but that's down the road aways.
 

bizzle

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Anyway, the one good thing was, in talking to the VW Credit rep, he assured me it was no problem to drop the insurance coverage required by the loan since I've turned in the car. I hope he wasn't just winging it - guess I'll find out tomorrow when the coverage officially ticks over to the replacement for my TDI: a 2017 Highlander. At the very least, I asked him to make an account notation about the call re: insurance.
As far as your financing institution is concerned, you own the car until it's paid off regardless of who is paying it off or who is driving it or claims to possess it.

That means, even if they don't notice your dropping your insurance while still financing it, if something happens to the car while it's still in your name you're going to be responsible for fixing it.

I wouldn't trust a rep's (especially a first line customer service agent) opinion about that. He almost certainly has no training in this area and it's much more likely that he was just winging it.
 

jtdid

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Joined
Dec 5, 2016
Location
Maryland
TDI
Golf SportWagen TDI
6 business days and no loan payoff. Will wait about one more week, then I'll start making lots of calls. Exercising patience, staying optimistic, but then again, we're dealing with VW....
 

jdc753

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Jul 24, 2012
Location
norton, ma
TDI
2000 Jetta
I'm going to laugh when VW drags their feet 3 months to make a payoff and then simply takes 5 minutes to call for a new payoff number and sends a check for that amount and the owner of the car is screwed over yet again.

VW's payoff in my offer/buyback receipt already differs by $250 from the banks payoff number, so that's $250 I could very easily loose if not tracking VW like a hawk if they pull a fast one.


The credit ding sucks, and to avoid that I will make another payment or two, but after that what is the bank going to do, come and reposes the car? This could really get fun
 

Mr. Furious

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North Carolina
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VW's payoff in my offer/buyback receipt already differs by $250 from the banks payoff number, so that's $250 I could very easily loose if not tracking VW like a hawk if they pull a fast one.
Yeah, mine will differ by about $800 by the time my buyback actually happens, assuming they don't call for a new payoff number closer to the buyback. Even if they do it will still be off by about $400 because my payment due date is 2/1 and my buyback is scheduled for 2/2; if VW was paying off loans within the 5 business days proscribed by the settlement I wouldn't make the 2/1 payment as it would be paid within the 10-day grace period, but they're not.
 
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