My husband baught me a new car from GMAC back in the year 2002. He got finacing for the car at 0%.. In 2006, we got behind in payment but kept up the insurance knowing this would put us in default of our loan. Tried to work with GMAC Loans and they said no, either pay by friday or we come and get the car, we were two months behind and wanted to pay, but they wouldn't except parcial payment for the one month.
I had Changed insurance companies on June 28th 2005 to GMAC Insurance because they were cheaper then the current one I was with. During that year, my husband lost his job, and we tried very hard to keep up.
My Insurance was due every month on the 28th.
After we recieved the phone call they were coming to get my car, I called and a friend said he would help me with a new loan.. On that friday that they said they were coming to get the car, I had paid of the GMAC loan and got a new finace company. 9-22-06
On the 25th three days later, I called and paid another month of preium and informed them of the changes to the new lien holder. In the beginning of march I got a packet in the mail that suggested I was starting a new policy with GMAC Insurance, so I called them. They said there was something weird but not to worry I was covered, it was all ok and that the only thing that changed is I would have a new date for my insurance which was now the 3rd of the month. Ok..
Now, I move to Mississippi, want a local insurer to deal with, they want a 5 year show of continual insurance, send for a decloration page and GMAC has on there that I was 9 days lasped of insurance. And the date was from 9-25-06 to 10-3-06.
They never updated the lien holder and still had GMAC Loans. Well, backing up to the threat I recieved on the payment just prior to finding a loan holder, I was lapsed 3 days prior to my actual due date.
I have to question why. This is crazy and unfair. Did the Loan department work with the Insurance depart and lapse my insurance to defualt on our loan? This was in Michigan and they have a law stating a 10 day grace period. If I had not gone and refianced the loan, I would of lost the car.
My new insurance agent found the flaw and told me this is not correct and you need to tell someone. He made me call them and he talked to them at his office, they said it was non payment.
I have to wonder, since this will knock me out of a cheaper rate with my new insurance company. If what they said was true, my lapse would be from 2-29-o6. She also told my new insurer that they don't have a grace period. Which in the state of Michigan they have to give you one. I am mad, I did the right thing and they took it away from me.
Thanks for your reporting process, at least I get to vent!
I feel there is two companies at fault here. Both GMAC. After I saw another report just like it, well I decided to report this too.