My question involves an auto loan or repossession in the State of: Hawaii
I took out a loan on a used vehicle November 2009. I am a member of the military and filled out a direct deposit form through the dealer and was told by the their financial guy that it would be submitted to the bank. My payments were to be 519 a month, financed loan for 24 months and made a 2500 down payment.
January 28th 2010, I received a letter from the bank stating I needed to pay off the entire loan balance or my vehicle would be repossessed.
I immediately called the bank to find out what was going on, and found out no automatic payments were being made. I then paid the bank for the month of November, December and January, with tacked on 50 dollar late fees every month for a total of $1707. Requested bank to set up automatic payments from my checking, filled out forms and everything.
February 2nd, Vehicle started having maintenance issues, and ended up replacing radiator for $1200.
Missed my payment due on February 5th due to NSF (my fault), and paid on February 14th.
March 27th, my car was repossessed without notice, for failure to pay March payment, and repeated late payments.
Attempted to fix issue with bank with no results. Bank refused late payment, but would only accept full amount owed on vehicle for 12,490.00.
On March 29th, I agreed to pay the loan off in full. Explained to the loan lady at the bank that I was liquidating my assets in my mutual funds and stocks and would take two weeks to do so. Bank accepted term verbally and agreed to not sell the vehicle for 2 weeks.
March 30th, Paid $1500 cash to the bank, and remaining balance was now $12026.00, due to repossession fees. April 5th, I wrote the bank a check for $12,026.00 and received a receipt for my loan balance paid in full. Bank explained to me it would take an additional 10 days for the check to clear due it being out of state.
I called the bank 10 days later on April 15th to verify the release of my vehicle. The loan agent that I worked with previously was out sick, so one of her co-workers informed me that it hadn't cleared yet and they would get back to me as soon as the check was cleared. April 24th, I checked my checking account, and the 12,026.00 was already cleared on April 10th, and not on hold through my other bank. I also called the bank that is holding my loan, and spoke with a normal bank teller, and was told my loan balance was paid in full, she verified my address to send me my title.
April 17th I receive 2 certified letters sent in january and march saying they were repossessing my vehicle.
After doing my homework on out of state check clearing procedures, its such nonsense the way banks do business. When it benefits them, they clearly are extremely quick to withdraw funds. But the other way around, the time it takes is clearly insane. There shouldn't have been almost 40 days to clear this check, with definate funds available and withdrawn.
On May 12th, the vehicle was released to owner from the bank. The impound lot now has a 918.00 in storage fees owed.
Do I have any legal recourse that I can take on this? Or should I just suck it up?