KCC 'lost' my 41st of 42 payments. I paid the final two loan payments in a single check and confirmed full loan satisfaction with KCC on December 2, 2011. As an afterthought, I placed a stop-payment on the 'lost' check. On December 11, 2011, I received a letter from KCC threatening prosecution and negative credit reports against me. The stated reason was that I had failed to honor a check. The check in question was the 'lost' check. On December 5, three days after KCC had confirmed that my loan was completely satisfied. KCC posted the 'lost' check, which my bank refused on December 6. In effect, KCC showed that it posts payments without regard to account balance. My insistence that KCC change the practice of blindly posting payments falls on deaf ears. Currently, KCC has offered to pay my $15.00 stop-payment charge plus $2,000.00 providing I release them from all liability and shut up.
It is clear to me that KCC intends to continue the practice of blind payment posting; it is clear to me that KCC has a vested interest in continuing to defraud consumers nationwide by collecting first without regard to account balance and placing the burden of correction on the shoulders of the consumer. As it stands, I will be refusing KCC's offer through the Arkansas Attorney General of $2,015.00. KCC will not acknowledge the illegal practice. KCC will not provide proof that they have discontinued the practice.
The fix is simple. Upon entry of a posted payment, the loan account number is used. With the loan account number, KCC is capable of doing a computerized check of account balance and rejecting any overpayment. Other than a vague reference to the Arkansas AG that KCC is 'taking measures' to assure that a case such as mine does not occur again, KCC has provided nothing substantial to indicate that they will discontinue the practice.
In any bank, a posted loan payment is checked against account balance and rejected if it overpays the balance. It seems KCC has chosen to ignore this simple accounting practice in an effort to collect more money, including money not owed against the loan it is processing. Although, KCC's 'loss' of the second-to-final payment may reasonably indicate the KCC is also in the habit of forcing consumers into default, I'm approaching this from the core issue. KCC collects money without regard to whether it is owed to them. For those without principle or honesty, we honest people create laws. Unfortunately for us, the bastards get lawyers.
