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Can a loan company turn a vehicle that is behind on payments into the police as stolen?

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Wiki User
2015-07-14 16:06:52
2015-07-14 16:06:52

HECK NO, they have lots of legal remedies but that is not one of them.

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Can a vehicle be taken by the police for delinquent payments.

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This depends on where you are.If you are in an area where it is illegal to hide the vehicle from the finance company you will get arrested, the vehicle will be impounded and the finance company notified.Added: If you have been concealing the vehicle from the creditor and at the same time not beein making payments, the creditor may well have filed a stolen vehicle report with the police.You have wrongfully deprived the creditor of their property (i.e.: THEY own it - not you). If the vehicle turns up in the police records as stolen they will not only confiscate the vehicle - you could be facing criminal charges as well.

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No, They would have to be behind on the car payment The above is not always the case. It can depend on what the car was impounded for. If it was impounded for something like drugs where asset forfeiture comes into play then yes the finance company can take the car regardless of payment status. The reason for this is because there are times when the authorities will tell the finance company that if the vehicle is returned to the registered owner the finance company will lose their rights to it as well. The finance company does not have to hand their collateral back to you if it means loss of collateral, it is their car after all.

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It sounds like a civil issue to me... you might contact an attorney or your local law enforcement agency to make sure though.


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