Car Payments Taking Their Toll?

Owning a car can be a big responsibility. And while you may have gotten up to speed on proper tire inflation and when to replace worn wiper blades, there are some other key things to know. 

For instance, if you took out a loan to buy your car, you don’t own the car until you pay off the loan. If you don’t pay, the lender can repossess the car. You might be tempted by companies that promise to lower your monthly car payments if you pay them a fee first. They might even claim they can help you stop the repossession process. Put on the brakes. Those promises usually are lies or half-truths from scammers who can’t possibly deliver.

In fact, the FTC recently charged Auto Debt Consulting with taking hundreds of thousands of dollars from car owners and not helping them as they had promised. According to the FTC, the company told people not to pay their auto loans. That “advice” increases the risk of repossession — and some people who paid for help did lose their vehicles.

If you can’t make your car loan payments, you have options, including contacting your lender directly. It’s in everyone’s best interest to work something out. Watch our new video and get more tips about how to steer clear of refinancing scams.

Tagged with: car, credit, loan, scam
Blog Topics: 
Money & Credit

Comments

I WAS DUPED INTO A CAR LOAN FOR 75 MONTHS AND A HEFTY MONTHLY PAYMENT EVEN AFTER TRADING IN TWO CARS AND ALSO PAYING SOME CASH

Sounds like someone bought outside of their means.

Was trick into a car loan, was suppose to be cosigner for my daughter, they took her income and put as mine, I have no credit and on disabilles, but I end up as buyer on loan. I ask loan people how the hell did that happen, say they been seen a lot of that lately. Told woman I was just trying to help out my daughter, My daughter and I both sign loan paper, but only my name appear. I think I need a lawyer.

I made car payments for a year in advance thinking I was making things easier on myself. I checked my balance a year later and owed the same amount I owed the previous year. I contacted the loan company and they informed me that because I made advanced payments, the amount paid was applied only to the interest because I didn't specify that the money go toward the principal. I was making online payments and nowhere on the payment screen did it show that you could or needed to make them aware of where the money should be applied. Whenever I checked my account for my due date on my next payment, it showed months later so I didn't know what was happening. They also informed me that my interest rate was 13% compounded daily. In reality, they were just letting me drive the car for a year and just postponing my payments even though I thought I had made them. I can't imagine how many people have been ripped off by Wells Fargo Dealer Services and all the other companies using this practice. Is there anything that can be done because This just doesn't seem right?

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