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Repossession
Seizure of property bought on credit for which loan payments are not being received. Please note that when asking a car repossession question, it is often useful to include the state that you live in. This will enable people to give you better answers.
11,694 Questions
What happens if a car payment is refused and you are not late or delinquent?
WHY was it refused? Not accepting it wil make you delinquient. You need to reach an understanding with the LENDER.
* The question is a little vague, however here's what I can say: IF, and it should have been, the repossession was first put on his credit report 7years ago then no. Any negative credit - excluding bankrupcy - by law must be taken off your credit report after 7years of its last active date (this is either when it was put on, or when you last paid it).
That is a highly unusual tactic.Unless you were notified in advance that they would only accept a lump sum payment.You need to check the consumer laws of your state.They probably, however can do it.If they take any legal action against you they may find themselves explaining their actions to a judge or trustee.Knowing your rights and standing up for them is your best defense.
Unfortunately, yes. But hopefully, it's not common. My best friend owed an animal vet $900 when her cat died in his care. When she, a single mom, tried to make payments, he refused them and didn't cash the checks because he wanted one payment in full. They ended up in court. The judge took my friends side. He totally criticized the Vet and told him he should rethink his collection policies. Legal, yes, but not a good idea.
How long does a creditor have to collect after a car has been repossessed?
In the US, the FDCPA (Fair Debt Collections Practices Act) regulates this nation wide. The individual states may have legislation also that addresses this, but they may only make the regulation tighter or more stringent, not looser.
Under the FDCPA the creditor has seven (7) years past the date of last payment to recover on a debt. If they seek judgment and this is granted, they have ten (10) years, and can motion the courts (often successfully) for an additional ten (10) years to collect. This is also from the date of last payment.
In the case of repossession or foreclosure, these acts can be construed by the courts as the date of last payment.
Here's a possible scenario that may help to explain:
Say you purchased a car in July 1999. You made payments until you lost your job in November. Your last payment was 1 November 1999. The vehicle went up for repossession in December, and the agency recovered the vehicle 1 January 2000.
The lender now has until 31 December 2007 to collect on the outstanding debt, all the while assessing further fees and interest.
Now, on 1 December 2007, say the lender gets tired of trying to collect the debt, so they file for judgment. On 31 December 2007, the lender is granted this judgment, and now has until 30 December 2017 to collect.
For the next ten years, they may make several efforts to recover the owed amount, but are never able to secure the balance. There is still going to be a balance owed on 30 December 2017. The lender can now go back to the courts and petition for an extension. Say it is granted, as is often the case. Now the lender has until 29 December 2027 to collect. A total of 27 years. during this time, every action taken by the attorney of the lender, every collection attempt made for which a fee is charged, every activity on the account that can be assessed some sort of fee is gowing to cause this debt to grow. A simple $1000 debt can grow to monsterous proportions within that 27 years.
Word of advice, find a way to file chapter 7 bankruptcy before it goes to judgment.
Should you sign a Stipulation for Judgment agreement?
That really depends on the terms of the proposed stipulation. Without adequate protection such as a court-ordered repayment plan, having a judgment against you can negatively impact your credit and give the creditor the ability to garnish your wages and take your property. On other other hand, you need to consider what would happen if you didn't sign it and compare the consequences of both actions to see what is best for your situation.
How long does a repossession stay on your credit report?
This will stay on the credit report until September of 2008 for that 7 year period, regardless of when the loan winds up getting paid off.
It can stay on the report a bit longer if it goes to court and the bank gets a judgment against the borrower. Say this happens in 2004, then that stays on the credit report another 7 years until 2011.
Bankruptcies stay on 10 years while delinquencies and defaults stay on for 7 years.
More Information:
- Seven years, unless you're applying for a high-paying job or a very large loan or life insurance policy, in which case the repossession will always be reported.
- Repossessions and all other notations remain on credit reports for seven years from the date of last payment IF there is no judgment on the account. In the event of judgment it remains for ten years after the date of last payment or the date of judgment (whichever is later), and can be extended for ten additional years in some circumstances.
- Occasionally, errors are made by the credit reporting agencies, and notations on reports may remain longer than they should. In the event of an unfair or erroneous reporting, contact the credit reporting agencies involved by registered letter. Corrections must be made within thirty days of contact. Be prepared to provide support for your request to make corrections to your credit reports. Generally though, no information older than seven to ten years should ever appear on a credit report unless ordered there by the courts.
- For reference, please consult the Federal Fair Debt Collections Practices Act.
- For debts that have gone to a collection agency, be aware that any contact, letters, phone calls etc to that agency, can set a new date on your credit file.
Can a collection agency refuse to accept rolled coins as part of a payment?
Yes.
Oddly-enough, there is NO U.S. Federal law that mandates a person, organization or merchant (which would include a retailer or collection agency) accept coins (rolled or otherwise), as payment for goods and services, even though coins are considered 'legal tender' as stated in the Coinage Act of 1965.
How is this possible?
Simple. Though it seems strange, the dollars and coins struck and printed by the U.S. Treasury are for the FEDERAL RESERVE SYSTEM. The Federal Reserve System MUST HONOR US currency and coins...however, not necessarily anyone else.
Link to U.S. Treasury FAQ's:
http://www.ustreas.gov/education/faq/currency/legal-tender.html#q1
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Yes, I would think so. You are better off sending a money order (keep your receipt) or a certified check.
If you pay by mail they can refuse cash payments (doesn't matter if it's coins or bills) but if it is in person they must take the coins, but you would probably have to unwrap them so that they can count them while you stand there----just another one of their stupid power trips.
Creditors or collectors can refuse any amount or manner of payment that has not been agreed upon in an original lending contract or collection agreement. This includes personal checks, checks by a third party, methods such as the one cited and so forth.
It is legal for this to occur, just as long as the original creditor updates their tradeline showing the account has been "transferred or sold" and the balance is updated to "0". What is NOT legal is for a collection company to place a debt on your credit report that is just about to reach it's statute of limitations for the purpose of keeping it on your credit report beyond the 7 year statute ("resetting the clock" so-to-speak). In other words, even if the debt is transferred to 6 different companies and they each report a trade line to your credit report, once the 7 year statute has expired, the bureaus must remove all tradelines from your history regarding the debt.
I hope this is of some assistance!
If you voluntarily turn in your car will it effect your credit?
YES!
When you finance a car loan, you are NOT buying a car. You are BORROWING MONEY "secured" by an automobile.
If anything happens to that vehicle, wreck, getting stolen or repossession (whether voluntary or involuntary); You are still liable for the amount of money you financed. This is why banks and other auto financers make you keep the vehicle insured during the term of the loan.
The financer may auction the car for a portion of the remaining balance. If that is done, you are still liable the deficiency balance (whatever is leftover of the original loan). It will show as a "charge off, repossession" on your credit for seven years from the date of last activity.
It is a court order against the debtor to pay the creditor what is due. The judgment can be satisfied in several ways, wage garnishment is the usual one. Levy against bank accounts. Liens against property. The liquidation of non-exempt assets. And sometimes (rarely a homestead) the forced sale of property on which a lien has been placed.
If it is in the winter make sure the radiator is full of water with antifreeze before starting the car. If this leak is not too severe it should be ok to drive a couple of miles to a mechanic.
What company sold Watauga shotguns?
Wautauga was a trade name used by the Whitaker, Holtsinger Hardware Company of Morristown, Tennessee on firearms they retailed.
Folsom, a sportings goods distributor and retailer in New York, was probably the wholesaler. They did not manufacture any firearms but Crescent Firearms of Norwich, CT was a wholly-owned subsidiary of Folsom.
Folsom also distributed arms made by a variety of Belgian firms. If you can find "ELG*" in an oval mark, probably under the barrel, it is Belgian, otherwise, most likely Crescent.
Crescent operated from 1893 to 1932.
Well, Jon, everything I told greyeagle applies to your gun, too. But, being a 410 makes yours worth about twice as much - about $100-$150 depending on condition.
What is the fair market value of a J Stevens model 235?
A SxS in useable but not like-new condition will bring between $100 and $250. A 20 gauge or .410 will be in the mid to upper part of that range and a 12 or 16 gauge in the lower to middle part.
Very simple really,you have the right to pay it. If you don't pay it, the lender will likely seek a judgment against you. If successful, they will proceed with any other legal remedies available to collect. Those include garnishemnt of your wages, lien against other property you own, etc. You can make an offer to settle, they can refuse or settle. Last but not least, you can do the bankruptcy deal. Try your best to avoid this. It will haunt you for 7-10 yrs. Good Luck
NOT unless the contract stipulates that it will be. Otherwise, it is a contract in DEFAULT with the collateral in the lenders possession.
Bill, ONLY if the co-signor is listed ON THE TITLE as CO-OWNER. Co-signors only responsibliity is to make the notes if the signor doesnt. Signor is just USING co-signors creditworthiness.
Is the lender required to notify the debtor before repossession in Michigan?
Michigan
TITLE STATE: 1975 and subsequent years. SECURITY INTERESTS: Shown on title held by debtor. LICENSE REGISTRATION: Michigan Bureau of Driver and Vehicle Records, 7064 Crowner Drive, Lansing, Michigan 48918. Tel:(517)322-1460. RECOVERY REQUIREMENT: As per UCC, repossession allowed without committing a breach of the peace. Repossesses must hold valid collection agency license & Regulation, Collection Practice Board, P.O. Box 30018, Lansing Michigan 48909, (517)241-9239. DOCUMENTS REQUIRED FOR LIQUIDATION: Title must be in lien holder's name. Forward application for title accompanied by a certified copy of the security agreement and an affidavit of repossession. PLATES: Remain with debtor.
Notification (right to cure letter) NOT required. Repo cos. need copy of loan contract, copy of title showing you as leinholder, copy of your wrongful repossession ins. The less professional the company, the less of the above you will be required to show. Its all about CYA.
Charlie, if you signed a contract promising to pay X number of dollars for X number of months and dont pay, then the collateral will be taken back and considered "repossessed". Doesnt matter how the collateral gets back to the lender. Its a businness deal.
Greg, if you are the primary OWNER on the TITLE, you can take the car. It would be better if you did the repoing yourself. Most repo cos. wont touch this type of "repo" with a 10 ft. pole. Toooo many variables and he said/she said.
How long do you have to pay off the balance after your repossessed car is sold?
this sounds soooo simple. UNTIL you get it payed off or discharged by B/K. Lenders will sometimes accept a CASH offer, so keep that in mind at refund time. B/K will clear off the debt but your already bad credit will be even worse by doing so. Try to pay something on a regular basis if possible. Good Luck
Carly, it can affect what interest rate you pay(HIGHER THAN NORMAL), how much you have to pay down to even get a loan. It is NOT a positive thing to have on your CR.
YES, legally they can repo as long as you are in DEFAULT of your contract. However, they want the money, not the car. So do what you told them you would do, stay in contact with them, dont avoid their calls and things will work out.
I am NOT a credit score exprt, but anytime you pay what you owe it looks good.Anything positive helps a bad score. Good Luck and congratulations on the payoff.
It may not help your credit score, but a friend of mine had a repossession through Ford Motor Company several years ago. He then filed for CH 7 protection and received a discharge. When he went to purchase another vehicle, Ford contacted him. They agreed to give him a loan on the car he wanted to purchase and added the other debt on top of it. It is one way of getting another car.
Carla, the LENDER is the only one who can stop the repo. CALL THEM ASAP and be VERY convincing if ya wanta keep the car. Otherwise you will be back on your feet again. Good Luck
If the lender wants the car back and doesn't think you are going to pay because you have moved, they can find you in much less than 30 days. Look at it from the lender's viewpoint: you're 45 days late, moved, left NO forwarding address, no way to contact you. WHAT does that look like to you?
And, YES, in some states it IS illegal to hide secured collateral.
