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I don't understand what you mean by "I finally discovered that the amounts they were demanding were the difference between the payments in our original loan agreement and the new payment amounts we received". Can you explain?
Yes. So the credit union gave us payment stubs that said we owed $170 and $75 dollars each month (these are rough figures). Our original loan agreements stated that we would owe $240 and $80 dollars a month. Once we recieved our new payment stubs ($170 and $75) and talked to someone to get these new amounts confirmed, we then began paying these amounts. Apparently they never changed this in there system, so they were still expecting us to pay $240 and $80 dollars each. So after 7 months of this they said we owed $500 or so for one account and $40 or so for the other account. I never new this and no one there could explain the amount we owed. The credit union had added insurance to an account a year ago that ran up a similar figure, and I thought they had done the same thing again.
I understand now.
Yes, you can sue them for negligence and possibly violations of the Fair Credit Reporting Act.
There is also a possible action for breach of contract.
What you may want to do is hire a local attorney to send them a demand letter asking them to correct the problems. This may get the result you desire for a minimal fee.
How much does an attorney typically charge for this?
For the letter they will probably charge less than $200, maybe even do it for free. If you have to bring a lawsuit it will be a minimum of $5000, with upwards of there not being unlikely. However, you can recover those amounts from the credit union.
Did you have additional questions?
I only sent the original letter demanding the corrections to them via email. Should I send it through certified mail?
Yes, although you may want to just let the attorney send the letter. It has been my experience that if clients get a firm "no" after a certified letter then it almost always requires a lawsuit whereas if they let me handle the initial letter the chances of it resolving before a lawsuit is required are much greater.
Ok, thank you. I have no more questions
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