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Behind on car payments because of the Coronavirus?

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financial impact because of the CoronavirusAre you worried that you won’t be able to make your next car payment because you’ve lost your job or income because of the Coronavirus? Or are you already behind on your payments? You’re not alone. Here’s what you can do:

  • Contact your lender now. Some banks, credit unions, and auto financing companies are letting people delay payments or renegotiate their payment schedules. If your lender agrees to any changes, make sure you have them in writing for later.
  • Find out what rights you have in your state. Check with your State Attorney General or local consumer protection agency. States have their own rules about how cars can be repossessed and what happens after. If lenders break the rules, they might lose other rights against you or have to pay you damages.
  • See if you can refinance your loan. This makes sense if a lower interest rate or longer loan could make your car payment doable. Just make sure you refinance with a credible lender or company. Depending on how much your car is worth and how much you owe on it, you also could look into selling your car or trading it in to get something cheaper before you miss a payment.
  • Don’t do nothing. Even if you have to miss a payment, don’t be afraid to talk to your lender to learn about your options. If you miss payments, you could be charged a lot more in fees and hurt your credit. While many lenders have begun to voluntarily forego repossessions during the pandemic, if you get behind on your payments, your lender still could repossess your car — sometimes without warning.

If your car gets repossessed, check your state’s laws to see what options you might have to buy it back or get any personal property left in the car.

You also might still owe money after your car is repossessed. You could be on the hook for any “deficiency” — the difference between what your car sells for and how much you still owe on it, plus any fees related to the repossession. In most states, your lender is allowed to sue you for it. An attorney can tell you whether you have grounds to contest a deficiency judgment.

The important thing to remember — you could have more options than you think, so don’t wait to talk to your lender. The sooner you do, the better the chance you can work something out.

For more, read the FTC’s article on Vehicle Repossession and this blog from the CFPB to learn more.

Tagged with: car, debt

Comments

Thank you for this information.

My landlord and I talked about me paying late due to the whole corona virus I don’t have a job or money and unemployment is taking a long time to arrive. He stated he will repossess my car. We had an agreement. What can I do?

The Government removed my right to earn an income, yet I have not received any unemployment for three months; I have done everything correct and to their directions, but I'm still on hold, now behind seven thousand dollars.

Im at a loss Ive lost my job been filing unemployment since may 24, 2020 its on hold im $1800 behind on my truck payment which is $864 /month I've paid well over $50,000 on my truck but no income at all and 136,421 miles on my truck warranty expired and rear end has blown out looking at $1,800 to $3,000 to have it repaired its currently in a shop in March my job cut us back to scrapping by so ford gave me 3 months which i have used and now this is unemployment wiuld have started up june 3rd like it should have i could have caught it up with the $600 government boost yet i was rejected so i should just let them come get it i dont know hate to loose the 50k ive invested in it yet i dont see any options im hustling to pay property taxes and groceries right now lord help us all

I was wondering if there is a website dealing repos and Covid 19?

why does some finance companies such as mine threaten repossession even during covid! Should not the laws actually be enforced to these ignorant businesses or lenders? I thought they are to suspend payments with out bad reports and without late fees and with out threats of repossession. Just continue regular payments possibly February 2021 since the matter is not being fixed at the moment. The lenders that do not and refuse to cooperate to the customer deserve to be fined and lose licenses to lend , since the situation is serious. Facts101

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