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Home >> Lending >> Vehicle Loans
Is My Loan Paid Off or Not?
I arranged a check payment based on a turbo tax payment date to pay off a car loan. The money wasn't deposited by Turbo Tax on time, and it was too late to change the date of the check, so the bank suggested I stop payment. I went to the bank to pay the loan off in person a week later, and they informed me it was paid off. I waited a few more weeks in case it wasn't showing up correctly, and again, the bank told me it was no longer in their system and was paid off. Am I still liable to pay the amount off or did the bank make a mistake and I don't have to pay it now?
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 We're not sure exactly what transpired. It depends on if there is a depository bank, a lending bank, or if they are one in the same.
If the check was stopped and the funds were not debited from your account (even if it put you in the overdraft) then you need to ask the lending bank when and how they were paid in full. If a check was applied to your account in error, once the rightful owner figures out what happened they'll reverse the payment and you'll have a loan again.
If the payment wasn't stopped in time, your deposit account was debited and your loan was paid off. Your deposit account could have been paid into the overdraft for this and your bank may or may not have charged you a fee. If your tax check then came in, you may not have realized it.
It is also possible that the check had arrived at your bank but wasn't yet posted to your account. The bank knew of the impending deposit and paid the loan according to your request.
The bottom line is that if you have all your deposit account money and your tax check, it sounds like there was an error. You will eventually have to repay your loan.
Published on BankingQuestions.com 3/09/10
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