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Report: #1342390

Complaint Review: Virginia Credit Union - Richmond Virginia

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  • Reported By: SWatson — Henrico Virginia USA
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  • Virginia Credit Union 7500 Boulders View Drive Richmond, Virginia USA

Virginia Credit Union Virginia Credit Union does not honor GAP insurance policies Richmond Virginia

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In August of 2004 I learned of what I thought and was told of the importance of Guaranteed Asset Protection (GAP) insurance after a motor vehicle accident. I was stuck having to pay the remaining balance on a totaled 2002 Isuzu Rodeo and obtaining another vehicle. I went back to the same dealership who told me about GAP Insurance and offered to add the remaining balance on to the loan for another vehicle.

In September 2004, I financed a 2003 Isuzu Rodeo and acquired a Guaranteed Asset Protection (GAP) insurance policy through General motors Financing Company Inc.

Shortly after becoming a member of Virginia Credit Union in November 2006, I refinanced the loan on the 2003 Isuzu Rodeo and specifically requested GAP coverage, which is provided through Virginia Credit Union.

The original loan agreement originated November 4, 2006 indicates the election of GAP insurance. I also acquired a separate line of credit which was relatively small $500-$1000. I hit some financial hardship and refinanced the loan I already had which included GAP insurance into a workout loan, this loan agreement is dated March 2, 2010. This consolidated the loan and the line of credit.

I did not indicate verbally or in writing, I no longer wanted GAP Guaranteed Asset Protection.

On July 17, 2016 a careless uninsured driver struck the back of my vehicle occupied by myself and child full speed while we were sitting at a red light. The vehicle was totaled. My then insurance company State Farm sent the whole $3,128.58 total loss check to Virginia Credit Union. When I contacted Virginia Credit Union to utilize my GAP insurance, I was told by multiple representatives my GAP coverage was cancelled and that they were still holding me responsible for $3,855.81 even after receiving the $3,128.58 total loss amount from State Farm. I was horrified because I never told Virginia Credit Union I no longer wanted GAP insurance, I was never refunded any of the money I paid for GAP insurance and more importantly Virginia Credit Union never told me or notified me they were canceling my GAP insurance. Multiple Virginia Credit Union representatives told me GAP insurance was not an option on work out loans which I knew wasn’t true because I had a copy of the workout loan with a clause indicating the option of GAP insurance in workout loans.

Virginia Credit Union subpoenaed me to court three different times. The third was a trial date of July 19, 2016. Judge Virginia McGhee was the presiding judge, her first question in reference to a mandatory rebuttal I had to send in beforehand was, “can you enlighten me to what GAP insurance is?” to Virginia Credit Unions attorney from Ballato Law Firm. With me not having legal representation and her lack of knowledge of GAP insurance yet she was presiding over the case I was subpoenaed to I got the eeriest feeling. Despite me having copies of both loans to show I had obtained GAP insurance with Virginia Credit Union she ruled in favor of Virginia Credit Union.

She let the Virginia Credit Union rep who was purporting I was in a workout loan with no GAP insurance cherry pick and use aspects of the initial loan and the more recent loan. He said. “even if she was still in the initial loan 84 months from the November 2006 date had passed (its clear on that loan the maximum GAP coverage term length is 84 months). However 84 months had not passed on the recent workout loan originated March 2010. With her ruling in their favor despite me having proof of GAP insurance and Virginia Credit Union presenting no proof they cancelled the GAP insurance or notified me they cancelled the coverage I was now responsible for an additional $1200 in attorney’s fees for the lawyer Virginia Credit Union used, over $5000.

Virginia Credit Union was going to garnish my wages. I was told to be able to appeal the case I had one week to do so and I first had to pay the $5,000, appeal and hope to be refunded the $5,000 if I won the appeal. I had no real chance to defend myself against a greedy crooked unscrupulous bank, Virginia Credit Union. There was no way I could financially withstand Virginia Credit Union garnishing my paycheck. To protect what little money I earn I filed a chapter 13.

I contacted the State Corporation Commission’s Board of Insurance and Board of Financial Institutions in reference to what recourse I can take.

Per the Code of Virginia 38.2-231 Notice of Cancellation, refusal to renew, reduction in coverage  or increase in premium of certain liability insurance policies, Virginia Credit Union broke that code because of their failure to notify me in writing they were canceling the GAP insurance policy I had with them.

Virginia Credit Union resolution department stated they charged the loan off therefore they do not have to provide me with any services when I called and requested a copy of the cancellation notice they were supposed to have sent me. The State Corporation Commission contacted me back and stated they forwarded my inquiry/complaint to the Attorney General’s office because GAP coverage is not regulated by the government that it’s regulated by the state and isn’t considered insurance (yet Virginia Credit Union and many others sells it as insurance). Virginia Credit Union failed to notify me they cancelled my insurance/ breeched the contract.

DO NOT purchase GAP insurance from Virginia Credit Union.

This report was posted on Ripoff Report on 12/09/2016 11:59 PM and is a permanent record located here: https://www.ripoffreport.com/reports/virginia-credit-union/richmond-virginia-23225/virginia-credit-union-virginia-credit-union-does-not-honor-gap-insurance-policies-richmon-1342390. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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