Robert
Irvine,#2Consumer Comment
Tue, February 14, 2012
When your car is totaled/stolen/whatever that does NOT relieve you of the obligation on your loan. If your car was totaled/stolen, your insurance company will pay the "Fair Market Value" of the car, yes even after 2 weeks this is going to be a lot less than the balance of your loan. This is where GAP insurance comes in. GAP will pay the difference between the amount covered by your insurance company and the balance of the loan. GAP does not cover amounts owed if you are delinquent or it is repossessed.
You say that you have an issue with them saying you owe $15,000 but you say you only owe $12,000. But what is odd is that you say you had GAP that they cancelled without your authorization. Well if that is the case why do you think you should even owe $12,000?
While you can spend money on what you want. It also seems odd that you are playing the "poor card" having only a $700 Disability payment. But went out and bought a car worth 23K where based on these amounts the monthly payment is going to be probably around 1/2 of that.
It seems like there is quite a bit of information being left out.