Technical Card Payment Issue. Why Did This Happen? Who Or What Is At Fault?

[enilnoda]

Hi,

I don't know who to ask about this. I don't know who would know the answer. I believe it involves something technical like computers, electronics, communication between computers, or something. I'm hoping you know the answer or can direct me to some one that does.

I make automatic payments to a car dealer every month using a debit card. I've made 28 or 29 payments. His records show that two of them failed, one in 08/21, the other in 08/22.

He repossessed my car on Sunday. I had to pay both payments of $319.92, 2 late fees of $50 each, and a towing charge of $250, a total of $989.85 to get my car back.

What he says about his records is true. I saw his records. But my card transaction log shows that I made payment in 08/21 (So, I paid this one twice.) and that the money was available for him in 08/22. He just didn't take it for some unknown reason.

I called my card company. Their records agree with that. They say that there were no declines in either month. They say payment was made in 08/21 and that there was no attempt made by the dealer in 08/22 to collect payment. They insist that there is no problem on their end.

So where is the problem? Why did this happen? And why did it happen both times in August? Is there something about that month? And where did the money go in August, 2021? I don't have it. The dealer says he never got it. So who got it?

[GoSeigen]

Hi,

I don't know who to ask about this. I don't know who would know the answer. I believe it involves something technical like computers, electronics, communication between computers, or something. I'm hoping you know the answer or can direct me to some one that does.

I make automatic payments to a car dealer every month using a debit card. I've made 28 or 29 payments. His records show that two of them failed, one in 08/21, the other in 08/22.

He repossessed my car on Sunday. I had to pay both payments of $319.92, 2 late fees of $50 each, and a towing charge of $250, a total of $989.85 to get my car back.

What he says about his records is true. I saw his records. But my card transaction log shows that I made payment in 08/21 (So, I paid this one twice.) and that the money was available for him in 08/22. He just didn't take it for some unknown reason.

I called my card company. Their records agree with that. They say that there were no declines in either month. They say payment was made in 08/21 and that there was no attempt made by the dealer in 08/22 to collect payment. They insist that there is no problem on their end.

So where is the problem? Why did this happen? And why did it happen both times in August? Is there something about that month? And where did the money go in August, 2021? I don't have it. The dealer says he never got it. So who got it?

This is a UK forum, so most of the answers you get will be based on UK knowledge and experience.

I think you need to make a formal complaint to your bank and ask them for a written account of what happened to those payments. You also need to complain to the dealer and say that there was no fault on your side, and instead of incurring unnecessary expenses by towing the car they could have worked with you to resolve the problem first, and demand the fees and charges back. You can forward the evidence you receive from the bank to the dealer as and when they reply.

I'm assuming here that the payments are a recurring payment taken from your card and initiated by the dealer. If so also look up the terms of that arrangements and any protections you get under US/AUS? law before you write so that you know where you stand.

GS

[DrFfybes]

Regular payment with a debit (or credit) card are quite unusual in the UK - sometimes insurance companies will ask for "continuous authority" to take annual premiums, but for monthly payment generally either you would set up a standing order to pay him directly from your bank account, or authorise him to take an automatic debit (a 'direct debit') from your bank account.

Direct debts here have quite strict rules as they are initiated by the recipient, standing orders less so as you initiate them and control them. If your system is more like a Standing order then the onus is on you to pay, if more akin to a direct debit then the onus is on them to request it.

Certainly over here failing to request payment would not be grounds for repossession (although it doesn't stop certain companies appointing debt collectors for payments they never requested) and I would assume US law would require him to notify you of the missed payments and give you time to sort it well before reposessing the vehicle?

So really you need a US-centric board for more appropriate advice.

Paul