It may seem easier to get a loan for the car of your dreams these days, but more people are falling behind on payments and becoming delinquent on their loans. When it becomes easier to get an auto loan, auto loan delinquencies are more common.
What does this mean?
The rise in delinquencies comes at a time when unemployment is low and borrowers typically should be able to make their payments. However, lenders may have loosened their credit standards and let borrowers take on more debt than they can afford.
Always read the information in any loan application to make sure that the information is accurate! Consumers should pay attention to whether their income is stated correctly on the auto loan application. If you find errors on your application, do not proceed with the purchase.
My car was repossessed. Now what?
Once delinquent, the lender may be able to repossess the vehicle without warning. If you think your vehicle may be repossessed, we recommend that you remove all car purchase and loan documents, and all personal items from the vehicle.
Once the vehicle has been repossessed, the lender will provide you with a notice detailing the terms for you to get your car back and where to retrieve your personal possessions from the vehicle. Follow these steps.
Does your credit report list the repossession inaccurately?
Check your credit report to see whether your loan payments were reported accurately. Consumers are permitted to receive one free credit report from each bureau within a twelve month period.
If the lender has reported your payment history inaccurately, send written disputes to the credit bureau.
Be sure to provide supporting documentation that shows why the information is not listed accurately on your credit report. The bureaus have 30 days to respond to your dispute. If the errors have not been corrected, contact us.