Often it may seem like the bulk of your finances revolve around the house and car payment. These are necessities in life, but that doesn’t mean it is always easy to pay for them. It may be simple when things are going well to get a loan for a new car—or to lease one—but what happens when circumstances arise that keep you from being able to pay, perhaps for several months in a row? There are options, and the first and best one is to call the auto loan servicer and explain to them what has happened. Perhaps you or a family member have been ill and medical bills are piling up, perhaps you lost your job, or another emergency arose. Usually, the lender wants to keep you in your car, but their main goal is ultimately to make money. In talking to them, you may find that it is possible to work out a refinance so that you do not have to give up the car. The other choice is trying to sell the car to pay off the debt, but this may be complicated.
Defaulting on an auto loan generally results with the creditor calling and writing, and possibly even harassing you. After that, they will probably take the car back and your credit will take a hit, with the default on your report for the next seven years. For that reason, it is very important to act as soon as possible rather than letting things go so far that the creditor is ready to send out the repo company to take your car away. There is the chance that they may then sell your car for much less than it is worth and then attempt to sue you for a deficiency judgment. They may already be harassing you for this amount. At this point it is important to talk to an experienced consumer protection firm such as Fitzgerald & Campbell.
Other issues may have arisen with your vehicle and finances if you have been in an at-fault accident and did not have sufficient insurance coverage. As if having an accident wasn’t traumatic enough, you may now be experiencing harassment from the other party’s insurance company who is threatening to sue you. Going up against an insurance company by yourself is not a good idea—and they could be misrepresenting numerous parts of the case such as your actual coverage, cost of repairs, etc.
If you have had an issue with a rental car, a vehicle title loan, or other legal problems related to your car, contact us now. We can review your case and advise you about your rights, as well as how to protect yourself.