Incorrect settlement figure

Company B approved a loan to Mrs C so that she could repay her partner's two motor vehicle loans at Company A. Company A advised Company B of the settlement figure.

Mrs C cancelled the direct debits after 24 months, anticipating that the loan would have been repaid in full. She then went to sell one of the motor vehicles.

The buyer did a credit check and to her surprise advised her the Company B was still owed $250 plus interest of $1,500.

Mrs C guessed that Company A had made an error when calculating the final amount owed and advised Company B.

Mrs C contacted the Commerce Commission, who in turn reffered her to FDR.

FDR advised Mrs C that she needed to make a formal complaint to Company A as the first step in trying to resolve the issue, and to contact FDR again if the matter was not resolved.

A couple of weeks later, Mrs C told FDR that she had written a formal complaint to Company A. Within days she received a call from them to advise that they had made a mistake when calculating the balance owed. They apologised and resolved the matter directly with Company B. No further monies were owed by Mrs C and the vehicle was released from the security so that she could sell it.

Mrs C was very satisfied with the outcome and thanked FDR for their assistance.