I sent a final letter to GMAC stating that they either prove I owe them and $800 charged-off amount or I was taking them to court. For those of you who don't remember, I have sent them about 10 certified letters in the last year asking for validation only to have them ignore me. The only thing they have sent is a statement of my account showing payments made (which shows that I have paid over the original contract amount). Then at the bottom of the computer printed statement the customer service rep handwrote "$801.00 - Insurance Policy". That's all I have gotten. I have continually asked for proof of such policy, etc. Nothing. Well it has been thirty days since my last letter letting them know of my intent to file suit for violation of the FCRA and defamation of credit. The limit on small claims in my state is $1500. I am not sure how to put an amount on my paperwork as my ultimate goal is to have the remove the negative marks from my credit and release the lien on my car. What kind of monetary value do I ask for and how do I justify it?
First of all I would call them back and ask them what the Insurance Policy is. Then go from there. These people may have a signed paper (they always do) That you may not even be aware you signed. You need to find out what that is and go from there.
The insurance is most likely "physical damage" coverage, placed on a vehicle when the owner's insurance company does not verify coverage for the vehicle financed by GMAC. They have to send the owner a notice that they did not receive the verification from the insurance company, and give the owner an opportunity to provide proof of coverage. They also have to notify you that they have placed this coverage on your vehicle, and tell you the price. The premium is usually added on to the end of the loan. If you received those letters, and did not respond with proof of coverage, then they had every right to place their own coverage on your vehicle - that is part of the contract when you finance a vehicle. If you recevied the notices and provided proof of coverage within the time frame they gave you, they should have removed the physical damage coverage and not charged you for it. Does any of this ring a bell? breeze
