Can a bank charge me hundreds of dollars extra for months stating my insurance had lapsed when it had not?

Question

Also there was a $50 additional charge every month for a auto detailing / paint protection application that I did not want in the first place, and was never received. But it was payed for every month as a additional fee added to my regular monthly payment. Also an employee of the bank repeatedly called me   being harassing and rude. When I asked to not be contacted by that individual anymore and stated that I would talk with any other member from the bank instead, they refused my request. Also I had authorized my wife to speak on my behalf for  matters involving this auto financing but was repeatedly denied.

James L. Arrasmith · Answer

Based on the details you've provided, there seem to be several concerning issues with how the bank has handled your auto financing: 
 
1. Incorrect insurance lapse charges: If your insurance had not actually lapsed, the bank should not be charging you additional fees. You have the right to dispute these charges and provide proof of continuous insurance coverage. 
 
2. Unauthorized additional charges: If you did not agree to the $50 auto detailing/paint protection application fee and the service was never provided, the bank should not be charging you for it. You can request that these charges be removed from your account. 
 
3. Harassment by a bank employee: You have the right to be treated with respect and not be subjected to harassment. If you have requested not to be contacted by a specific individual, the bank should honor that request and provide you with an alternative point of contact. 
 
4. Refusal to communicate with authorized party: If you have properly authorized your wife to speak on your behalf regarding your auto financing, the bank should allow her to do so. 
 
To address these issues, you should: 
 
1. Gather all relevant documentation, including proof of insurance, your original auto financing agreement, and records of the disputed charges. 
 
2. Write a formal letter to the bank detailing the issues and your desired resolutions. Send this letter via certified mail to ensure a record of receipt. 
 
3. If the bank does not respond satisfactorily, escalate the matter to higher authorities within the bank, such as a supervisor or manager. 
 
4. If the issues persist, you may need to file a complaint with the Consumer Financial Protection Bureau (CFPB) or the California Department of Financial Protection and Innovation (DFPI). 
 
5. Consider seeking legal advice from an attorney specializing in consumer protection or auto finance issues to explore further options. 
 
Remember, you have rights as a consumer, and banks are obligated to treat you fairly and resolve disputes in a timely and appropriate manner.

Q: Can a bank charge me hundreds of dollars extra for months stating my insurance had lapsed when it had not?