Did my car finance company make a mistake?

Q I bought a Chrysler Jeep Cherokee in July 2004 but in December 2005 it was involved in an accident and was declared a write-off. I called Chrysler Jeep Finance in March for a settlement figure, confirmed as £16,573.90, valid until my next direct debit due on April 14. My insurance company sent a cheque for £16,252.93 to Chrysler Jeep Finance, which the company confirms it received on April 13. I made a direct credit transfer on April 6 of £320.97, making a total payment of £16573.90. On June 1 I received a letter from Chrysler saying I owed £143.67. I wrote and explained that I had settled in full before my payment date of April 14, but Chrysler wrote back saying it will take further action if I do not pay the £143.67. I have since been told the settlement figure was "rejected" by Chrysler, although I was never informed of this before paying. I settled in full as per the letter Chrysler sent me. It now says I have to pay a proportion of my April direct debit, even though it was not due. Can it do this?
IK

A If you have written confirmation of the settlement sum and that sum has been paid in full, Chrysler has made a mistake - either in demanding more money or in its original calculation of the settlement amount. Check the original letter again to be absolutely certain: does it state that the settlement is in addition to payment due on April 14? If not, I see no reason why you should have to pay a penny more - unless Chrysler can provide written proof that it got your original calculation wrong.

If it can show that the original settlement you were quoted was incorrect, you will have to pay the extra. But because it would be Chrysler's mistake, you can insist on having time to pay (say, 28 days) rather than having to fork out instantly. Write to Chrysler explaining this, and remember to point out that you will seek redress if your credit rating is affected as a result of what sounds like a clerical error.