Auto loan legality issue.pls help!?

Question:

i was doing auto loans with this company called WESTLAKE FINANCIAL SERVICES.at d time, they offered me temporary insurance 4 my used car. dis insurance is valid for 6 months. its one of those liability and comprehensive thing. n after 6 months, that insurance is no longer valid n i have 2 get my own insurance. so i did and i was insured by mercury. at the time i was paying $392.88/month for 6 months. this includes the insurance that the bank offered. so 6 months later i called them n asked how much my payment would be without their insurance since i already got my own. they said the payment remain the same bcuz i agree to pay that amount in the first place. then i argued with them back n forth due to the fact that i agree because $392.88 INCLUDES THE TEMPORARY INSURANCE. but my payment w/o insurance still remained the same. is this illegal? i paid them $392.88 4 22 months already..n the last payment i made was april 07 (i paid the whole thing off already). if illegal who should i talk2

Answer:
The simple fact is you can only have one Insurance policy running on a CAR at any time.
As soon as you get the second one the first one ends.

Your payment was and is for insurance
there can be no other policy in effect

if you have two policies running at the same time
one of them needs to refund you
by law the last policy you start is the one in effect

This Law is because without this Law
people could could get 10 policies on a car
then go total it and make money

what the company did was legal. think of it in this way. general motors offers one year free onstar service with the purchase of a new car. after the year is up, then you can continue to have onstar if you pay for it.
your loan company offered a free service as part of its contract, but that service is not reflected in your monthly payments to them since they gave it to you for free. you did not over pay

Since you paid the whole thing off, you need to take the finance agreement to a lawyer and let him know what happened. Call around and get a free first consultation and he can tell you what to do and what his fee will be if he handles the case for you.

I have a feeling you misunderstood what you paid for.

I suspect that the 6 months of insurance was "rolled into" your payment, and therefore you "financed" the premium, that is why your payment isn't going to change.

Unless you can recall writing a SEPARATE check for the insurance part (which is rare), then you payments will not change, and Westlike is absolutely correct in advising you.

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Auto loan legality issue.pls help!?

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