• Report: #191718
Complaint Review:

Kia Financial Services - Ford Motor Credit

  • Submitted: Tue, May 16, 2006
  • Updated: Wed, August 09, 2006

  • Reported By:Springfield Virginia
Kia Financial Services - Ford Motor Credit
Http://www.kmfcusa.com/index.asp Detroit, Michigan U.S.A.

Kia Financial Services - Ford Motor Credit violated Paid In Full regulations and re-possessed paid off car ripoff Detroit Michigan, Fountain Valley California

*Consumer Suggestion: same name

*Author of original report: Partial Answer

*Consumer Suggestion: Payout with 6 months remaining should have been 1,400

*Consumer Suggestion: Get an account history

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In February 2006, through our bankruptcy lawyer, a payoff figure was obtained from Kia. The final quote of $716.86 was provided verbally to our attorney, who relayed the amount to me and my husband. Kia claimed they do not issue written figures.

A check for the complete amount was issued with "Paid in Full" clearly marked in two locations on the front of the check as well as on the endorsement line, per the UCC codes.

Kia deposited the check and it cleared our bank on 2/27/06. The next three months, our attorney kept weekly contact with KIA trying to locate our title, to which Kia never responded to her calls.

5/08/06 Kia financial called me at home to tell me the payment was past due. I explained the car had been paid off and we have been waiting for the title from them.

A very rude man stated that he did not care if the words payoff were written on the check, there was still $2000 owed on the car. I told him that the amount was given to our attorney and that was the amount paid. He proceeded to tell me that if I did not pay the monthly payment they would re-possess the car. I told him if you touch my car I will sue you.

I called our bankruptcy lawyer who proceeded to contact Kia and their lawyer. Their lawyer never returned our lawyers calls. This went on until the evening of 5/11/06.

5/12/06 I left to take my two girls to school and our car was gone. In order to retrieve the car, we had to pay at total of $2435.40. Having just finished the bankruptcy, we did not have that kind of money, so my husband had to take a loan through his retirement fund. We now have to re-pay that back with interest. We had to obtain a rental car until we could get our car back, which took until 5/15/2006.

My husband and I are so upset that we had to pay a total of the $716.86 plus an additional $2435.40. Our car was scheduled to be paid by 8/06 had we kept the regular payments of $243 a month instead of paying it off in February. Kia claimed the balance was $2716.86 after cashing our check. How could our balance have been that when we were scheduled to only have six more payments at $243 a payment? Not taking into account the 14% ineterest rate they had to deduct partial from paying it off earlier.

Our lawyer is currently looking into legal process, but any information you can provide that would help us would be greatly appreciated.

My sincerest thanks to you all.

Springfield, Virginia

This report was posted on Ripoff Report on 05/16/2006 07:37 AM and is a permanent record located here: http://www.ripoffreport.com/reports/kia-financial-services-ford-motor-credit/detroit-michigan/kia-financial-services-ford-motor-credit-violated-paid-in-full-regulations-and-re-posses-191718. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Suggestion

same name

AUTHOR: Stan - (U.S.A.)

Writing "Paid IN FULL" is not acceptable because in most cases it goes to a lock box. Also there could be 2 consumers with the same first and last name. That is why the SS# is suppose to be verified.

Plus, if the consumer had 20 coupons left in their book @ 200.00 per month and gets a pay off of only $2000.00 then they should know it is incorrect because the payoff would never be less then the total number of coupons left in their book.
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#2 Author of original report

Partial Answer

AUTHOR: Donette - (U.S.A.)

All I can tell you is that we had two cars, turned in one for the bankruptcy and kept the other.

As of 1/06 we had been current on the car payments. They had been extended to 8/06 for payoff because during the course of the previous years (cars were purchased in 01 new)with the loan they had allowed us to "defer" payments due to my husbands former military status. This is why it was extended to 8/06 instead 01/06.

The final amount quoted was verified three times by my attorney with KIA (original amount stated was over $3k until they realized they were also including the second car).

The interest rate at the time of buying was 14%.

I do not understand how all of this works, but my main concern is how to handle the "paid in full" and then still have the car repossessed almost three months later?

There were no "balloon" payments. This was a regular loan, the repo fees were $350 according to Kia themselves.

This is why I am having trouble understanding how they can do this. I do not know how much they should have quoted, but once the amount was given to the lawyer, verified, and cashed, that should have been the end of it, right? Perhaps you can clarify this for me.
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#3 Consumer Suggestion

Payout with 6 months remaining should have been 1,400

AUTHOR: Dave - (Canada)

I program an F&I system for car dealerships, so trouble-shooting finance calculations is something that I get to do frequently as part of my job.

On a normal loan, if there are 6 remaining payments of $243, then the amount outstanding is $1,400 (and change, assuming 14% APR).

That you were quoted a figure of $717 is confusing. KMFC was apparently answering a question other than the one your lawyer was trying to ask.

Just looking at the numbers, I wonder if the loan had a balloon due at the end, or if perhaps you were already behind in payments.

I'm sure they tacked on repo fees to the final amount, as well as penalties and such, so I can't guess at what the real numbers for your loan might have been.

If I were you, I'd also be pissed at the lawyer.
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#4 Consumer Suggestion

Get an account history

AUTHOR: Dave - (Canada)

What happened doesn't make any sense to me.

I'm with you that Kia Finance screwed up somehow.

An account history might shed light on what they've done, or what they think they're doing.

Maybe they robbed you on the other vehicle, by not giving enough to satisfy that loan, and tacked the difference onto this one.
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