Information on auto loan and reposession - The Bills.com Blog

My car was repossesed by a title loan that I took out. I had paid this month, but not the entire interest amount they wanted. Are there any loans I can get to get my car back...I have 15 days

I'd recommend negotiating with the title loan company first. Any other loan that you would get would be challenging (your credit will be impaired) and probably not on great terms.

i purchase a vehicle was finance thru chase auto since i was one month late on my payment they pick up the car. I have talk to the finance company and told them that i was going to make my payment the same they pick up the car. chase bank told me that they don't want to finance anymore and for me to refinance the auto. i could understand if the payment were 3 months behind or 4 months behind because i had filed bankruptcy that i was high risk they knew that when they finance me i also told them from now on they can take the money out electronically was told they can because i close the account i told chase why would i if they were my bank and have been banking with them for the past 8 years ask to speak with supervisor also was told can't speak to one. want to talk to someone higher than the supervisor they had told me no one higher than that supervisor. need help what to do

Once the vehicle is repossessed, it is up to the finance company to decide of they will give the vehicle back to you even if you make all the payments that are due. Unfortunately, if they are unwilling to continue with the loan, then they will sell the vehicle at an auction and use the proceeds to pay off the loan. If there is any balance due, you will be held liable for the balance as well.

I have a vehicle loan that I am currently making payments on. The thing is, I'm moving to another country. If I return the vehicle can they pursue me over seas?

Phil, thanks for visiting the Bills.com blog. If you return the vehicle, the creditor will auction it off and apply the proceeds towards your loan. You will be held liable for any remianing balance, which is also known as a deficiency balance. The creditor will continue to report the unpaid balance to the credit bureaus. The reporting will continue until the statute of limitations expire, which could be 7 to 10 years depending on the state of your residence. I am not sure of their efforts to persue you abroad.

If i let my truck go back can the bank attach or take my social security or navy retirement without allowing me to make some arrangements to pay the balance after the car is sold?

If you let your truck get repossessed (I am guessing that is what you mean when you say 'go back’) the lender will sell it and apply the funds received towards the balance of the loan. If the sale proceeds are not enough, whatever remains is called a deficiency balance. Although a creditor can file a case in the court and get a judgment against you, they might or might not go to the extent of doing so. Income such as social security and your Navy retirement pensions are protected from attachment. You will be given ample opportunity to come to some sort of a payment arrangement even before the case comes to court.

There is a sentence in an auto refinance agreement I am considering to refinance. It states that I am considered in default of the new auto agreement if I default on any other loan I have now or later with any other third party creditor which may materially impact any of my property of my ability to perform obligations under this new agreement. This seems very broad reaching. I had thought that if I pay timely my auto loan, it should not matter to this lender whether I may have missed a credit card payment. Is this usual and customary within the banking industry these days? Is this a new concept?

What you are referring to is known as "Universal Default Clause". This has been the norm in the credit card industry for a while. I am not aware of it being common in the auto loan industry. I would clarify this with the lender.

I took a car out through Magic Auto of Reseda. The set down payment was to be 1.5k . I gave 1k and had a left over balance. Ok now on the day which the first payment was to be taken,which by the way they are their own bank aswell. They went to my wife's job to harass her in a very exalting manner. I got in contact with them and told them I would be at their dealer to give their down. Once their, I got into into an argument because of the way they disrespected my wife. The guy in "charge" said he washy going to finance me any more . So I said fine well give my down again. He refused so was going to leave and they refused to lets go with the car. I heard that if they unwind a vehicle before the monthly payment is made by law they have to return my down. Is this true and what rights do I have, or what should I do now.

Please go through the terms and conditions on the contract. There is not enough information here for me to answer your questions. Usually, once you sign the promissory note, you are liable for all the payments.

Hi I'm moving overseas and I still have a car loan. If a make a volunteer reposession is the bank going to come after me even when I am abroad or they will only send notifications to my old address? Please Help!!!

Loan agreements usually have a local jurisdiction and as such it is unlikely your creditor will follow up for collections overseas. Keep in mind that once you surrender the vehicle, they will auction it and apply the proceeds to your loan. If there is still a balance left over, they will keep reporting it to the credit bureaus and your credit will take a hit until you resolve the account or till the statute of limitations expires.

Hi Bill and thanks for your quick answer but I have another dilemma. Since I will travel for work to Canada, if I surrender the car, would I be stopped at the airport or can they create problems once I come back for work or on vacation??

No, they cannot stop you at the border; the only thing I would be worried about is a legal proceeding on the deficiency balance, if any. If they proceed to sue you in court and do not hear from you, they will be able to get a default judgment against you and that will definitely look bad on your credit report. Keep in mind that financial matters always fall under the purview of civil law, and they just can't throw you in jail, so to speak.

I purchased a car through Chase. I neglected to get it insured. Chase was aware that I had no insurance. I was sent a letter statng that if I didn't get insurance they would get it for me and add it to my loan. Assuming they did exactly that, I didn't worry about it. My loan amount payment increased substantially. I had a car accident that was not my fault however, the other party's insurance company would not pay for my car because I didn't have insurance. They took care of their insured. It will cost over $5,000 to repair my care. I check with Chase and they stated they did not purchase insurance for me. Needless to say, I messed up royally! I can't afford to pay Chase and save to get the car repaired. It appears the penalty in my state for being uninsured is one year suspension of license. I am concerned about Chase. I have decided to let them repossess the car. I know they are not going to be happy it is damaged. Do you have any suggestions?

That is a bad place to be in. Unfortunately, the options for you are limited right now. You should have taken Chase's advice and purchased insurance on your car. Repossession, voluntary or otherwise seems to be your only option. Even though Chase might not be happy about your car being damaged, they will sell it for whatever they can and they will still hold you liable for the balance (which is called the deficiency balance). I would start negotiation with them right away for an amicable settlement.

My wifes car got reposesed. She wants it back. Chrystler financial says we have to come up with the total amount we owe to get it back. (understandable)If we let it go to auction and it does not sell for what we owe I understand we owe the balance. My question is. We filed for bankruptcy, and we're discharged Jan. 07. Are we protected under bankruptcy laws that we would not have pay what is left over on the balance?

If this debt was included in the BK filing then it might have been forgiven (If you were approved for Chapter 7), which does not seem to be the case. I don't think you can include the balance in your bankruptcy filing at this point.

I bought a car in North Carolina and left after paying on time for two years to go Tennessee to secure employment after plant closure in North Carolina. Because I could find work immediately I fell 6 months behind in my car payments. To make a long story short, the finance company told my mother they intend to take out a warrant for my arrest and that I am facing 5 years in prison because they can't find me. My plates and insurance lapsed and I guess that is why they couldn't locate me since it was not registered in any way anywhere. Can I really be charged with a crime? What are my options since they also said they don't want my money anymore--just the car. Must I return the car to NC or must they come to TN to get it. I can't afford to put on current plates and insurance. Help! I don't like the thought of going to jail.

They cannot put you in jail because you failed to pay the loan. All this can be sorted out by just speaking to them and clarifying your situation (which I think you have been afraid to do till now). When you speak to them be truthful about the facts of the matter and tell them that you cannot afford to register and insure it so they can come and take the vehicle if they'd like. You will be hit with a lot of charges on your credit report, but you have little choice now, believe me, you don't want the lenders to file a case of intentional fraud against you.

I have an issue. I bought a vehicle in December of '07, it is now June of '08. My car is financed through a finance company, not the dealership, but the dealership came to my home & repossessed my car saying that I still owe them money for the down payment!! They had no paperwork to provide me when they took the car, so I called the finance company & they told me that the dealership has NO LEGAL RIGHT to the car anymore (mind you my payments are made on time faithfully). The finance company also told me to call the police & tell them that the dealershipe "stole" my vehicle...I have the title with my name & the finance companies name on it. The police said that I couldn't report it stolen. What are my options? Do they have a right to take my vehicle?

First of all, when you finance a vehicle, you the customer has to put a down payment and the financing company then funds the rest. I suspect that this has something to do with the finance company not paying the dealer. In fact once a vehicle is financed and sold off, the dealer has no right on the vehicle because the title of the vehicle is now in the finance company's name. You should not have let the dealership take the car without any paperwork. Now you are in a difficult position because you willingly gave up your car, and I think that is the reason that the Police are telling you that you cannot file a stolen complaint. I strongly suggest that you consult with an attorney to figure out your future course of action.

I work for a finance company in NC. We financed a vehicle for a customer who pays perfectly. However, she had an outstanding judgement with Ford Motor Credit prior to the loan with us. I was under the impression that in NC, you could not be granted property (writ of possession) for a judgement on propertythat is not owned by the customer yet(lien with us). I am trying to give the customer advice other than "seek legal counsel" because she pays me perfectly.

As far as I am aware, the vehicle that you financed, although is in your customer's name, you still have first claim on the title. But, I am no legal expert, and my opinion is that it would be better your customer gets legal counsel. You could also check on the North Carolina general statutes page available at: http://www.ncleg.net/gascripts/Statutes/Statutes.asp

My car is about to get repossessed. My payment date was changed from the 9th to the 30th of each month. It was an oral agreement although I have statements that say its due on the 9th and new statements that say its due on the 30th. Do I have an arguement of breach of contract?

I don't think a change in the payment date constitutes a breach of contract. Please refer to the terms of your contract for clarity.