Credit Security Acceptance Corporation

I was charged to car payments yesterday and today which I initially thought was a legitimate accident until I checked my email and found one titled "one time" phone authorization. The email stated "per our phone conversation today you authorized payment in the amount of [redacted] on card ending in [redacted] on 5/1. I NEVER had a conversation with anyone on 5/1 at CSA and I did NOT authorize a one-time charge on my card for 5/1. I have a payment every other Saturday that is preauthorized and they literally took my CC information from the pre authorized scheduled payment information and pretended they spoke to me on 5/1 and received authorized to charge it that day as well. That call never happened, that authorization never happened. I have contacted an attorney but still waiting to hear what, if anything, I can do about this. I just don't understand why they think they can get away with fraudulently charging my card just because they have access to it and pretending I approved it over the phone when they never spoke to me...I didn't even have a missed call so literally there was not contact between AT ALL.

Review: My balance in the beginning of June was 6,428.47 which I understand in a month's time I have roughly a 130.00 of interest,however it is now September and my balance is 6,873.11 , and on top of that I was 8 months ahead on car payments, also My cpp balance has not changed in a few month I was also 8 payments ahead on it as well and the amount has stayed the same at 931.50, I use to see these amount slowly go down as I made my payments but since I made 8 payments ahead the amounts have gone up and or haven't changed.and when I call to talk to csa they don't look into it ,they just tell me it's the interestDesired Settlement: That the payments are applied correctly and are visible to me when I go online and check my payment's. And or a better explanation as to why I am not seeing the past 8 payments applied correctly and why my balance has gone up instead of down

Business

Response:

Revdex.com Complaint ID #[redacted]

Dear Sir or Madam:

Thank you for making us aware of Ms. [redacted]’s complaint, and giving us the forum to respond. We apologize if the following information was not conveyed more clearly to Ms. [redacted] by our staff, so we have taken the time to speak with the collections staff and ensure that we got a thorough explanation to pass along to Ms. [redacted] here. It appears that on May 28, 2013, Ms. [redacted] made a large lump payment towards her Retail Installment Contract with our company, in the amount that reduced her principal balance by the equivalent of eight total payments. Though this action reduces the principal balance by her payment amount, with a simple interest setup, the interest on a percentage basis on the outstanding total amount, for the life of the contract. Even though the large amount she paid reduced the total amount that she owes, there is still interest accrued on a daily basis on the remaining balance. The interest rate on the retail installment contract is 24.8%. Once the lump sum payment was made, the remaining principal balance due was $6415.39. 24.8% of the balance due equates to about $1591 in interest over the course of a year, so broken down to a daily value, that is around $4.35 per day in interest accrued for as long as the balance is $6415.39. Since the amount has remained for over 100 days since the last payment was received, there has been about $465.45 in interest accrued on the balance, and when that sum is divided by the approximately three and a half months since the lump sum payment was made, she is correct in her statement that it amounts to about $130 per month. The Collateral Protection Insurance that is mentioned in the letter is a forced-place insurance program that CSA assigns to accounts that do not meet the Full Coverage requirements as agreed upon in our contracts. This coverage protects CSA’s interest in the vehicle in case of an accident, and is not a loan of any kind. There is no interest, and there is no way for the balance to increase. It is a static amount due with each payment, and the total balance can only decrease.

We hope this helped to clear up some of the confusion regarding Ms. [redacted]’s account, and if she has any further questions, our Finance Director Jeff has offered his time to speak with her directly in the future. Thanks for your time.

Sincerely,

Credit Security Acceptance Corp.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me. I will wait until for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,