early termination charge (auto lease)

[trbish]

Has anyone dealt with the Early Termination Charge on a vehicle lease?

owner traded vehicle 4 months prior to lease end date, was notified after the transaction of early termination provision. The owner went ahead and paid the remaining 4 payments and lates fees (and actually paid this all prior to close of 36th month)----but bank still demanding Early Termination Charge is owed. All of this transpired in 2001, but trying to get info off credit report. Is it too late?

This is what was done thus far:

Dispute of Charge Off with CRA, reply: verified, all three bureaus

Sent letter to Bank requesting validation of alleged claim, cert mail, reply from bank received with-in 30 day time-frame.

Bank states...."enforcement of early termination provisions"....and then they give an accounting breakdown of fees, sales tax etc with a $10K "Termination Charge"

The bank did not give a month by month accounting---should we ask for this?

Any ideas????

[seeker]

Just reading what you have posted, I would be prompted to A4V and then ask that they provide proof that there was any default on the lease -- if all payments were made as agreed. Seems the leasee chose to "leave" the vehicle in the leasor's care for the remaining time on the lease, while exercising the right to contract for a new vehicle. What did the 'contract' say regarding this? If it is not there, it would have to be agreed upon by the contracting parties somehow.

So the question may be who screwed up? The leasee completed the payments as agreed, and the leasor held the car -- if they chose to resell it prior to the termination date, seems they wrongfully contracted, not the leasee. Or they are at least as 'guilty' as the leasee. Perhaps they need to be served with breach of contract by accepting the vehicle?

Just some ideas to provoke your thought process ..

Seeker

[trbish]

good point thanks---will ask for proof of early termination