Upgrad Personnel Service of Knoxville

SWBC administers the GAP program on behalf of the carrier for [redacted].  On 3/26/15, the borrower elected GAP coverage on the vehicle securing the loan.  On 5/18/17, SWBC received claim documents outlining the loss, but the claim did not include a calculation of the primary...

insurance payment, which is required under the GAP waiver.  SWBC contacted the primary insurance carrier who confirmed that the loss was due to wear and tear and/or mechanical breakdown, which is an excluded peril under their policy.  Therefore, there was no primary insurance coverage. 
 
The “GAP Amount” in the waiver is calculated based on the primary insurance payment for physical damage for a theft or total loss.  Since there was no primary insurance coverage for physical damage, there was no GAP amount to pay the borrower. 
 
Under “Installment Sales Contract/Loan/Lease GAP Waiver Addendum” in the borrower waiver agreement, it reads “If the collateral is not protected by primary insurance, we will waive only the GAP amount obtained by subtracting the Actual Cash Value of the covered collateral from the unpaid net balance and you will remain responsible for the Actual Cash Value of the collateral”.  Since the Actual Cash Value of the vehicle was $8,985, as determined by the primary carrier, and the unpaid net balance was $8,282.86, the borrower is not entitled to payment under the uncovered loss provision of the waiver. 
 
The GAP insurance carrier has confirmed denial of the claim after re-reviewing the file per the borrower’s request.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Regards,
[redacted]

According to the enclosed amortization schedule received from Mr. [redacted], the first payment date that was accounted for in the amortization of his home loan was February 1, 2012.  As a result, the balance reflecting on August 1, 2015 was $92,985.43.  However, Mr. [redacted]’...

loan closed on February 24, 2012 with a first payment due date of April 1, 2012.  We have enclosed a copy of Mr. [redacted]’ HUD-1 Settlement Statement and Promissory Note that was signed at closing for your review.  We have enclosed a standard amortization schedule reflecting the April 1, 2012 first payment date.  According to the standard amortization schedule, the principal balance as of August 1, 2015 would be $93,278.33; representing a $292.90 difference from the balance reflected on the amortization schedule that we received from Mr. [redacted].Our records indicate that three principal payments, formally regarded to as principal curtailments, in the amount of $1,000 each were received on June 3, July 3, and July 31, 2015.  Enclosed is an amortization schedule accounting for the principal payments which is an accurate depiction of Mr. [redacted]’ loan account.  After the application of principal payments, the balance as of August 1, 2015 was$90,266.44, representing a $281.01 difference from the principal balance Mr. [redacted] listed in his correspondence.  Please note:  each of the monthly mortgage statements generated after the applications of Mr. [redacted]’  monthly installments and principal payments indicates the entire amount that was received was applied to his loan correctly per the terms of the Note.We respectfully disagree with Mr. [redacted]’ claim that he was charged a 10% fee for prepayment.  At no time in his telephone interactions with our customer service department was he advised that a re-amortization fee or penalty will be charged.  We acknowledge that the Promissory Note signed at closing dictates that no prepayment penalties will be assessed and we have not assessed any re-amortization fees and or prepayment penalties on Mr. [redacted]’ loan account.  The afore-mentioned loan account payment history will confirm this information.

Complaint: [redacted]
I am rejecting this response because: Per the contract I signed, there was nothing that declined coverage due to major mechanical break down, or wear and tear per the letter I sent in response to SWBC's refusal to open the claim. I forwarded a cooy of the entire GAP agreement I signed electing the coverage on my loan. I have attached a copy of the letter I sent as well as the GAP election form outlining the coverage. It states that GAP will cover the balance when the vehicle is deemed a total loss (which it was)... it does not say if primary insurance covers the loss... my primary insurance clearly outlines what is and is not covered under the policy. It was not a loss covered by my primary insurance, however, after their investigation, the vehicle has been deemed a total loss. This claim should be covered per their definitions on the forms I signed when I elected coverage. They should honor the agreement I signed that does not exclude major mechanical failure anywhere on it! After the headache and amount of tine I have spent trying to work with this company for resolution, I am disgusted! I am simply seeking the coverage Ibelected under the GAP policy... I can only imagine if I was also seeking compensation for my time in trying to get in touch with someone that could actually help me or for my inconvenience in what should seemingly be a simple process with a relatively fast turn around to clear the balance the loan so that I can obtain a replacement vehicle. I am simply asking this company to do the right thing and honor the coverage I purchased!!
Regards,
[redacted]

We are unable to share details of the complainant’s account with the Revdex.com as this is personally identifiable information.  However, we have been in contact via phone with the borrower as of April 18, 2018, to address the borrower’s concerns.

Please note - this complaint is not regarding SWBC Mortgage Corporation - the consumer does not have and has not applied for a mortgage with SWBC Mortgage Corporation.  Please direct all inquiries regarding the status of this complaint to the Compliance Department for SWBC at...

[email protected] so that they can respond accordingly.

Please find below the SWBC response to above referenced complaint.  Please let me know of anything further that is needed.  Thank you.   Resolution:  SWBC contacted the underlying carrier and was told to send in revised documentation and the change would be processed within 24 – 48 hours.  SWBC e-mailed the original application, along with a hand written note requesting the effective date change for both the 2014 – 15 and 2015 – 16 policies, and SWBC has subsequently confirmed that the policy dates have been changed and the revised policy was mailed to the insured on 10/2/15     [redacted]

We have received your correspondence dated January 3, 2018, pertaining to Case Number [redacted].  We understand the borrower’s concerns and take this matter seriously.  We have conducted a thorough review of the circumstances cited in this case.   Unfortunately, we are unable to share...

details of this complainant’s account with the Revdex.com as this is personal financial information.  As such, we are addressing this complaint directly in a letter to the borrower.  This letter will be mailed to the borrower at the address of record today. We trust this response has adequately addressed the issues contained in their complaint.

According to our records, the loan was paid in full as of June 11, 2015.  Once the loan paid in full, a final reconciliation of the escrow account was initiated.  On July 3, 2015, the escrow balance was released to the address of record in the amount of $3,634.80. We note in Mr....

[redacted]’s complaint that he no longer resided at the property address and that an alternate mailing address was provided at closing.  Please note: the alternate mailing address was provided to Mr. [redacted]’s title company.  We have no record of the third party providing us with the updated address; as a result, the check was disbursed to the address on file.  Our records indicate on July 13, 2015, Mr. [redacted] contacted our Customer Service Department regarding the status of the refund request.  Our agent advised Mr. [redacted] that he had to wait two weeks before the check could be stopped and reissued.  This is not our process and we regret the misinformation Mr. [redacted] received.   On July 19, 2015, we initiated the process to reissue the escrow check to the new mailing address provided by Mr. [redacted].  Please allow 7-10 business days for receipt of the payment. Since we were provided with a P.O. Box as Mr. [redacted]’s preferred mailing address, we were unable to expedite the request via overnight mail.  Additionally, we do not offer electronic deposit as a method of refunding a borrower’s escrow balance at this time. We apologize for any inconvenience this may have caused Mr. [redacted]. We have utilized this situation as a coaching opportunity to enhance our customer service skills as his experience is not indicative of the level of service we strive to provide.

Complaint: [redacted]
I am rejecting this...

response because:This response DOES NOT ADEQUATELY ADDRESS my issues with SWBC. The letter I received states that SWBC will provide a final response to my concerns within 60 DAYS!  What do I do in the mean time?  I have received a packet in the mail from a debt collector due to lack of payment. At the same time, I received a letter from my local agent stating she needs more information regarding my application for a mortgage loan.  My agent won't talk to me (literally will not take my phone calls) because she has been instructed by Corporate Servicing to "not discuss my current loan status because of the discussions going on."  I spoke with a resolution analyst (Ms. [redacted] id# [redacted]) on 4/4 who instructed me to hold my questions for her, when she calls me back on 4/6.  Today is 4/17, she has not called me back.  I still have questions and NO ANSWERS. I am furious with this company and the lack of follow through with what the representatives say they will do.
Regards,
[redacted]

Subject: Resolved   The issue I complained about resolved seems to have been resolved. I finally got them on the phone

Southwest Business Corporation (SWBC) administers debt cancellation claims on behalf of [redacted]. SWBC normally processes these claims initiated by the lender ([redacted]) rather than working directly with borrowers at the onset, which resulted in confusion regarding this...

customer’s claim. We have since received and reviewed the loan and claim file, and have approved the customer’s claim. Therefore, two monthly payments will be forwarded to [redacted] on the customer’s behalf and we will be sending the customer a continuing claim form. Upon completion of the continuing claim form, the customer will be entitled to continuing benefits so long as the customer is unemployed, up to the maximum benefit limit.
We apologize for the customer’s frustration and for any confusion caused by SWBC.