Your hours may have been reduced at work. A family member may be seriously ill. You may be going through a divorce. Any number of life situations may impact your ability to keep up with your car payments.
If you believe that your vehicle may be at risk of repossession, follow these steps:
1) Gather Important Documents
Remove all car purchase and loan documents from your vehicle immediately. Keep these documents in a safe place in your home, not in your car. In most cases, auto lenders are not required to contact you in advance of a repossession. If your car is repossessed, gather all car purchase and finance documents for a qualified consumer protection attorney to review.
2) Request a Loan Payment History from the Lender
Contact the lender for a complete Loan Payment History which reflects all payments from the date the vehicle was purchased to the present.
If the payment history does not agree with your records, you may dispute the errors with the lender. If you defaulted on your payments, the payment history will show late fees, interest, or other charges added to your account. Be sure that the lender’s calculations are correct. If any payments were not recorded properly or were misapplied, send a written dispute to the lender with documents that support your dispute.
3) Photograph the Condition of Your Car
Take photos that show the current condition of your vehicle, including the interior, exterior and odometer reading.
4) Do Not Hide Your Vehicle
It is illegal to hide your vehicle if the lender is attempting repossession. Review your signed loan agreement for the terms of your loan.
5) Secure Any Agreement to Defer or Avoid Repossession In Writing
If you have an understanding with the lender to permit you to catch up on payments or defer a repossession, be sure to get that agreement in writing. Whether you get a letter from the lender, have an exchange of emails, or send your own letter detailing the terms, it is important to create a document which confirms the agreement.
6) Seek Legal Help
Contact Flitter Milz for a free evaluation of your case. Whether you have fallen behind on payments or not, the lender must follow the law.