Hey all,

I leased my car last year, it was a 2002 MP5... last month the car got written off so I figure all is said and done, don't owe a single cent more on the car. Well, Mazda Canada figures that until they settle up with my insurance company I should still have to be making payments on the car. The way I look at it, is I no longer have a car, I shouldn't have to make further payments due to my insurance company and Mazda to come to an agreement.

They took out a payment this month which I am getting reversed, and I have placed a further stop payment on all future payments from them.

Do you think this was the right move guys? I'm not rich enough to make payments for something I don't have and I've been told once everything is finalized (red tape) that I won't owe a dime.

 

It's not Mazda's problem that you no longer have the car. Until your insurance company settles with Mazda, you are contractually obliged to service your debt.

I would warn against reversing the payment. All you will do is damage your credit rating. You are hurting yourself, not Mazda.

You need to get on the phone with your adjuster and ask them what they can do to either hurry up or help you with the payments.

 

I agree ... watch out for the credit rating. It might hurt you in the long run, so play this carefully.

That being said, when all of this is over, get your credit report from Equifax and make sure that all is ok in there (www.equifax.ca)

M.

 

These guys are correct. Unfortunately, you need to keep paying until all is TRULY settled - that is, until Mazda gets an insurance check.

You are contractually obligated to pay, and they can sue you for those payments if they desire.

It may be possible to get Mazda to refund the "extra" payments once the settlement is fully complete. But refusing and reversing payments will not help your cause.

Bottom line: get your insurance company off their asses to get this solved.

~HH

 

wat you do is to provide the documents that proove that you have returned (or sold your car for people who's selling) and
fax that over to your insurance agent to stop the insurance.

its the same way as when you start your coverage by
sending the invoice/receipt of the car when you first buy/lease it
but just the otherway around.

i like to be sure of things when money is involved so i never take
risks.

 

Update:

After thinking about it last night, I decieded not to have the payment cancelled and cancelled getting the payment NSF'd. I got the number for the accounts manager who is looking after my claim and called up the Mazda Credit guy. He was a pretty good, understanding guy and did tell me that I would get the payment back as soon as my insurance company settles. He was a "Really" good guy and agreed not to take further payments out of my account, so in hindsight, you guys were right.

I guess its always better to try to work within the system then rash moves that could end badly.

 

Good job, man - glad it's all going to work out right for you.

And you're correct - most times, a rash move will only cause more problems than it solves. Actions like that have their place, but usually only after all diplomatic solutions have been exhausted.

~HH