RICHMOND (AP) -- A federal appeals court has ruled against a bank that repossessed a customer's car and damaged his credit rating after insisting for months that he owed nothing.

A three-judge panel of the 4th U.S. Circuit Court today affirmed an $81,000 judgment against Branch Banking and Trust Co. of Virginia.

Rex Richard Saunders traded in a car at a Richmond dealership, which paid off his existing note with BB&T and financed the second car through the same bank.

Saunders never received a new payment book. He contacted BB&T repeatedly and was told he owed nothing. Then BB&T abruptly informed Saunders his loan was delinquent and demanded more than $20,000 in overdue payments, late fees and other charges.

Saunders agreed to make good on his loan obligation but refused to pay any penalties. The bank repossessed the car, reported the action to credit bureaus and refused to acknowledge a dispute filed by Saunders.

The appeals court said BB&T's actions were "sufficiently reprehensible" to justify the verdict.