Paid off my auto loan, double reimbursement. Can dealership send to collections? (pay, credit)

[aiden.storm]

I purchased a used car through a dealership almost 2 years ago and purchased GAP coverage on the loan with the finance department. I ended up paying off this car in about 10 months (originally a 48 month loan) and then requested the dealer refund to me the remaining prorated amount of the GAP coverage that wasn't used (approximately $250 or so). The dealership sent me a check for the $250 in the mail, and I have since been under the impression that I was all set. Again, it has been almost 2 years since I purchased this vehicle, and almost a year that this car has been paid off (title in hand and all).

Just recently the dealership sent me a letter that they realized they accidentally refunded me the prorated GAP amount twice, because the payoff on the loan was actually reduced by the prorated amount at the time of the payoff (loan payoff was $250 less). I obviously never noticed this, and apparently neither did they for a good year or so. I checked my credit recently and saw that my auto loan is listed satisfied as agreed on my report. Although my loan is officially paid and satisfied, can they technically send this $250 double reimbursement to collections if not reimbursed? Obviously this is annoying considering it took them a year to figure out their error, but I also understand that this sort of accounting mistake may happen more often than I think. What action can the dealer take?


Very curious, thanks!

[Grsz11]

If you pay back, it's done with. If you don't and they do take it to collections, you'll have to pay and take a hit.

[MadManofBethesda]

You've acknowledged that you received an extra $250 reimbursement and the dealership is now requesting that you return the erroneous refund that you received. WTH difference does it make whether they can send it to collections? Why are you even asking the question? Don't be a douche. Just pay back the money.

[glass_of_merlot]

Well, I love how they can screw up and more than a year later come and ask for their money back.

Sent from my DROID4 using Tapatalk 4 Beta

[texdav]

if they had sent less then you found out I imagine you would want more.

[midwestlaxer]

you could always negotiate. I doubt they'd take the time to file anything in court over this amount, then again, you could settle at that time when you get the paper work if they do. You might want to go over your records again and make sure that they are in fact owed the money.

Read the paperwork from the acquisition, check the amounts you sent them, follow the paper trail. OR....just pay them, either way you're out time or money, or both. How much is your time worth?