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

jtdid

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Maryland
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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?
 

DanB36

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Savannah, GA
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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.
 

jtdid

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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

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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

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Dec 9, 2015
Location
Martinsburg, WV
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2003 Jetta TDI, 2010 Golf TDI, 2013 Passat TDI
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?
 

jtdid

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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.
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

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Jul 13, 2003
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Savannah, GA
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2014 Q5 Prestige TDI, Monsoon Gray
How long did it take for you to get your buyback offer after they accepted your documents?
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.
 

jtdid

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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?
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.
 

wuzilla

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Nov 15, 2016
Location
Acton, MA
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2012 JSW
Interested in this as well. My buyback appt is on Jan 6, with a loan payment due on the 9th. I figure I'll just keep an eye on the loan, and if it's still showing a balance by the afternoon of the 9th, I'll send a payment.
 

gsmith2424

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Maiden, NC
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2014 Jetta TDI Value Edition DSG
Interested in this as well. My buyback appt is on Jan 6, with a loan payment due on the 9th. I figure I'll just keep an eye on the loan, and if it's still showing a balance by the afternoon of the 9th, I'll send a payment.
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

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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.
 

jtdid

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Maryland
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Golf SportWagen TDI
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.
 

jtdid

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Maryland
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Quick update: Money from Chase EFT email now in personal checking account, overnight, less than 12 hours later.

Next update: when car loan paid off.
 

Circuit

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Joined
Aug 31, 2013
Location
Fremont, ca
TDI
2010 Jetta TDI
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.
 

dmanb2b

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Joined
Apr 4, 2014
Location
NY
TDI
2012 Jetta, 2011 335D
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.

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

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Nov 15, 2016
Location
Bay Area, CA
TDI
2013 Passat SE
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.
 

visortgw

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Jan 5, 2012
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Upstate NY
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None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
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.
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."​
 

tcnotch

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Aug 26, 2012
Location
Texas
TDI
01 jetta
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.
 

beancounter

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Location
Rancho Cordova, CA
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2014 Sportwagen 2013 Beetle Conv
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.
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

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Nov 15, 2016
Location
Bay Area, CA
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2013 Passat SE
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 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

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Jan 5, 2012
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Upstate NY
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None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
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,
  1. Contact Class Counsel (mailto:info@VWClassCounsel.com or 800.948-2181).
  2. 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.
  3. Go back to the Settlement Specialist at the dealership.
 

Salsaman06

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Dec 30, 2012
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Texas
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2013 Passat TDI SEL (sold back to VWoA Dec 21, 2016)
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

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Sep 29, 2013
Location
Felton, DE
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2012 Passat TDI SE
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.
 

TDIsoup

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Oct 28, 2016
Location
Texas
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2013 Passat
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.

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.
 

jtdid

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Joined
Dec 5, 2016
Location
Maryland
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Golf SportWagen TDI
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.
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

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Jan 5, 2012
Location
Upstate NY
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None: 2012 JSW with Sunroof (traded pre-scandal); 2014 JSW with Sunroof/Nav (early lease termination 12/17/2016)
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>
Payments are being made via EFT, AFAIK -- no reason on earth to wait until the middle of January!
 

jtdid

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Dec 5, 2016
Location
Maryland
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Golf SportWagen TDI
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

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Oct 12, 2016
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baltimore
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2013 VW Jetta wagon tdi
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.
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

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Oct 27, 2016
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Riverside
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2014 beetle
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

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Jul 19, 2012
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North Carolina
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None
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. :D
 
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