Hi guys -- I had a loan on my VW, and I just finished my buyback this morning, and I'm waiting for my EFT email (which will supposedly come tomorrow) -- however, it dawned on me that I have another car payment coming up, and I'm wondering how long it takes for VW to pay off the car loan. I know I'll get the over-payment back from the bank, but I wanted to know if anyone has had their outstanding loan paid off yet, and if so, how quickly?
How long after buyback closing is a bank loan paid off?
- Thread starter jtdid
- Start date
DanB36
Veteran Member
The settlement says it should be within five business days. Mine closed on Thursday; I'll try to update with how long the loan payoff to USAA takes.
Thank you, DanB36!
Do you also have your normal bank account with USAA? Would be interesting to see the difference in time between the EFT payment to hit a USAA bank account vs. the time for the payouff to hit the USAA car loan account...
DanB36
Veteran Member
I do most of my banking with USAA, but that isn't where the buyback money went. But even so, the buyback funds go through a very different process to get to you, so I wouldn't think there'd necessarily be any particular relationship between the two times.
abnav8r
Member
I also have my loan through USAA. My paperwork was submitted on Oct 19 and I'm still waiting for my offer! How long did it take for you to get your buyback offer after they accepted your documents?
Agreed, but it would be interesting to see if there was a correlation. But yes, the processes are different. I'll post an update on my loan payoff as well.
DanB36
Veteran Member
Documents were accepted on 10/20, and I received my offer on 11/23. Returned it the same day, and it was accepted on 12/1. Earliest buyback appointment I could choose was 12/15.
I thought I mentioned this in my OP, but I also have a loan with USAA. I submitted my paperwork right after reading here in the forum that the portal was open... I believe it was Oct 17. However, I can't recall the date for sure. I know it was before Oct 19 though.
I received my offer on Nov 22, which I turned around back to them immediately. Then I was able to schedule my buyback appointment on Dec 3. The first available appointment was Dec 17 (2 weeks) but I scheduled it for today, Dec 19.
FYI - I was the first person the buyback specialist saw that had an outstanding loan. All prior people she saw had their titles clean and clear. Hope that helps a bit.
gsmith2424
Active member
I'm in the same situation as you with the same dates but just in North Carolina. I have already canceled my auto-payment to VW Credit as VWOA will have taken ownership of the vehicle on Jan 6th. I don't plan on making a payment if it doesn't show its paid off by the payment date as I no longer owned the vehicle as of Jan 6th.
PacCoastFwy923
Veteran Member
- Joined
- Feb 21, 2008
- Location
- Oakland
- TDI
- 2015 Passat SE TDI 6-speed manual; 2006 mkV Jetta TDI / 5-speed / Pkg 2
I'm curious too and surprised nobody has checked in with this info to any of the handful of posts asking.
It makes sense that, for a $30k buyback, if VW immediately pays the owner $15k, they have no other option but to send the remaining $15k to the bank, and generating/mailing the check the day after buyback is completed.
In my experience, the delay comes with the bank, where they seem to take an extra day or two to process the payment.
It makes sense that, for a $30k buyback, if VW immediately pays the owner $15k, they have no other option but to send the remaining $15k to the bank, and generating/mailing the check the day after buyback is completed.
In my experience, the delay comes with the bank, where they seem to take an extra day or two to process the payment.
Quick update:
I just received my EFT payment email from Chase. Total time from my buyback closing appointment from yesterday was about 33 hours.
Now we see how long it takes for the actual car loan to be paid off... will update thread when that happens.
I just received my EFT payment email from Chase. Total time from my buyback closing appointment from yesterday was about 33 hours.
Now we see how long it takes for the actual car loan to be paid off... will update thread when that happens.
Circuit
Veteran Member
Completed buyback 12/17
Received Chase email and setup deposit 12/19
Deposit complete 12/20
As of 12/21 loan (Wells Fargo) is not paid off yet. The payoff amount is ~$700 higher than my current balance, so that SHOULD be sent to me as well, but the Wells Fargo rep told me that all depends on VW's instructions when they send payoff.
Received Chase email and setup deposit 12/19
Deposit complete 12/20
As of 12/21 loan (Wells Fargo) is not paid off yet. The payoff amount is ~$700 higher than my current balance, so that SHOULD be sent to me as well, but the Wells Fargo rep told me that all depends on VW's instructions when they send payoff.
Please let me know how this works out for you. I also have a Wells Loan, also sold car back on the 17th and also received my deposit on the 20th. Still no loan payoff. I will do the same.
DigitalTDI
Member
Still waiting for my loan to be paid off as well.
Forfeited my car to VW on Dec 6th and received my portion of the payoff deposit on the 7th. Here we are just about 2 weeks later and my Wells Fargo loan for the car has yet to be paid off.
Decided to torture myself and call the VW Claims hotline to see if I can get any additional info, however, I didn't really get any concrete info from them either. They pretty much said that VW has the info to pay the note off with Wells Fargo and it "should" be paid off by the end of this year. With their track record of the info they're spewing, I'm not holding my breath.
Forfeited my car to VW on Dec 6th and received my portion of the payoff deposit on the 7th. Here we are just about 2 weeks later and my Wells Fargo loan for the car has yet to be paid off.
Decided to torture myself and call the VW Claims hotline to see if I can get any additional info, however, I didn't really get any concrete info from them either. They pretty much said that VW has the info to pay the note off with Wells Fargo and it "should" be paid off by the end of this year. With their track record of the info they're spewing, I'm not holding my breath.
visortgw
Veteran Member
- Joined
- Jan 5, 2012
- Location
- Upstate NY
- TDI
- None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
I would not wait, paying additional additional principal and interest in the interim. According to the FTC settlement document (Document 2104), page 35, they are long overdue:
"XIII. E. For Eligible Owners with an outstanding Loan Obligation, payment shall be sent to that Eligible Owner’s lender within 5 business days of completion of the Eligible Owner’s Buyback."
I turned my car in on the 12/8 and they still haven't paid the loan off.
Called the claims line and they could not give me a straight answer on when it would be paid off. Was told not to worry that VW was responsible for the loan now and not to pay the car note.
I then called my bank and was told they haven't heard from VW since they called asking for the payoff. My bank does offer a skip a payment for the holidays so I'm going that route for now.
Called the claims line and they could not give me a straight answer on when it would be paid off. Was told not to worry that VW was responsible for the loan now and not to pay the car note.
I then called my bank and was told they haven't heard from VW since they called asking for the payoff. My bank does offer a skip a payment for the holidays so I'm going that route for now.
beancounter
Well-known member
You are still responsible for the loan until VW pays it off. When the payment is late, the bank will call you, they will call not VW. They should have paid it off within 5 days.
DigitalTDI
Member
I was not aware that there was language in the court documents for a payoff timeline, thank you for that! What options do I have at this point. The VW settlement specialists are no help,
visortgw
Veteran Member
- Joined
- Jan 5, 2012
- Location
- Upstate NY
- TDI
- None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
- Contact Class Counsel (mailto:info@VWClassCounsel.com or 800.948-2181).
- Contact Chase Payments (855.267.0428). I am guessing that they may be making payments to lenders as well as consumers on behalf of VWGoA.
- Go back to the Settlement Specialist at the dealership.
Salsaman06
Veteran Member
Just completed my buyback. I asked about when the bank would be paid and the ambassador said that when they release the funds to me, they release them to the bank at the same time. He said some banks may have different processing rules that affect when you actually see the loan paid off. We'll see. I'll report back what my experience is.
Shawn MacAnanny
Veteran Member
Not that it's buyback payment related but i submitted my payoff this morning to VW Credit at 9:00AM EST by phone to transfer directly from the bank account that I've always made the payments to VW Credit with and when i logged in at 7:30PM EST tonight it already shows payment cleared and that the account is closed.
This is simply not true as confirmed by two VW Credit managers I spoke to. All they could do for me was make a note on my file so that hopefully I won't get reported to the credit bureaus. My car was turned in on 12/17. This is ridiculous because I need the zero balance letter for my extended warranty cancellation. I'm losing money daily on that.
It's alarming to me that VW may not be honoring the 5-day payoff deadline. However, it might not be time to get worried... at least not yet.
The way I read it, "payment shall be sent to that Eligible Owner’s lender within 5 business days" -- looks to me that they have to SEND the payment to the lender within 5 business days... so let's say after 5 business days, they decide to send it via snail mail, so give that 3-4 more business days... then let's say the bank needs to process it, so give it 2-3 more business days... I'd guess 5+4+3 = no more than 12 business days for this to be wrapped up. That's probably optimistic. (edited for clarification)
So, from Dec 6, that puts you around Dec 22 by my guesstimate... so then let's add on another 5 business days for VW's general incompetence and holiday laziness right now, so let's say Dec 29 is the day I would personally consider starting to worry and I would call class counsel and raise the alarms.
In my case, based on 17 business days guesstimate, that puts me around Jan 11 that I will consider it time to call class counsel. I hope VW takes care of things sooner! But before then, I won't worry.
In the meantime, I see no way around making continued car payments. As far as the bank is concerned, we still are the names and responsible parties on the car loans, so to play it safe, I'm planning on taking that seriously and paying. And that is of course very annoying.
Good luck to all of us in this situation, and please do post updates to what happens here! Very much appreciated! <sigh>
Last edited:
visortgw
Veteran Member
- Joined
- Jan 5, 2012
- Location
- Upstate NY
- TDI
- None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
Payments are being made via EFT, AFAIK -- no reason on earth to wait until the middle of January!
Even if that's true (which I hope it is, and it seems logical that it would be), I haven't read confirmation of that. And I wouldn't be surprised that VW will take the slowest, least-efficient, least-logical approach. Which would be snail mailing the car loan payoff checks to the banks, and that whole process could easily take 12-17 business days as I'm guesstimating.
And considering we car loan people are just now getting through the system, VW probably isn't staffed up enough yet either. So before I panic and call the class counsel, I'm giving VW a little extra elbow room. Not that VW has earned extra elbow room. Not because they deserve elbow room. But because calling VW or the class counsel too soon will likely result in something like, "yes, they're working on it as fast as they can, and nothing like this has been done on this scale before, yadda, yadda, play VW the violin sap story, and please be patient for another week or two."
So instead of hearing that reaction by calling too soon, I'm just going to wait it out a little longer, make the car loan monthly payment as usual so my credit rating isn't hurt, and then call class counsel after a little more time. Then I'll hold their feet to the fire if needed. Color me skeptical, but I don't think VW has been meeting many deadlines, so this won't be the first.
The sad thing for VW, IMO, is that this whole buyback process could be a massive PR win for VW if they just handled it perfectly going forward. Alas, they dug themselves quite a hole with the scandal to start, and then decided to dig a little deeper with how they are executing the buybacks. Surprised?
atomicfront
Veteran Member
Wait they can't even mark the loan as paid off within their own company? What a bunch of morons. I still say the CEO of VW North America should be fired over this fiasco.
Buddenlee1
Well-known member
I hate this bs. Were making payments on a car were not driving than we turn in car and still making payments on a car that we dont even have. Ive heard youll get your payment back but will that be whole payment or minus interest. Because most of my payment goes to interest. Cant we just make a princepal payment? My payment to vw credit is 450.00 and if i recall princpal was only 145.00. My app. Isnt until jan 18th so im makeing dec. 22 payment than looks like im going to be doing Januarys also
Mr. Furious
Veteran Member
My Credit Union is literally up the block from the dealership; when I bought the car, I walked the check down. I wish I could just do that in reverse to pay it off, but I know that's not how it works. 