Asked in InsuranceAuto InsuranceAuto Insurance ClaimsAuto AccidentsTransportation Accidents
What can the bank do to you if a car registered in your name is damaged by another driver in a single car accident and there is no insurance?
November 05, 2007 7:37PM
If you fail to compensate the financing bank for their loss, and if monies are owed by you to the financing bank, then they have several options, They can file suit against you as the garauntor of the loan and thereby seek a judgment that may attach to other owed property or bank accounts and even your paycheck, They can also report you to credit reporting agencies afftecting your ability to obtain future financing. Bear in mind that Most banks will only pursue the above if you fail to compensate for the damage from the accident. Most auto finance notes require that you maintain insurance to protect the financier from just such a property loss in the event of an accident, failure to do so is then a violation of the finance note agreement. You will likely have agreed to this when you signed the finance contract.