Complaint / review text:
How could ANY bank can reposses a vehicle if a carload is not paid? It's not that Capital one had a lien on this person's vehicle, unlike the case when you finance a vehicle thru a dealer, so to say that they could re-posses the vehicle?
I mean, Capital One approved an autoload and sent a blank check to the person so that the person can buy a vehicle with the amount of money contained in that check. Thus, it's a consumer loan without any lien issue, which means if the person, whom loan was extended to, doesn't pay the load back then bank can take the person in a civil court to secure a judgement. And once judgement is taken then bank can do whatever like lien on the vehicle, wage-garnishment and other collection activities, but not without a court order/judgement.
So, how was it possible for Capital One to reposse the vehicle in this particular case without a court order? Unless, the person did not mention here about Capital One having securing the Court Order first and then reposses the car. Please share some light on this situation.
On the side note, I would like to know something if someone can shed their opinion. I've a person who applied auto loan with Capital one online but the person requested the said auto loan to buy an used vehicle directly from a private party than a dealer, and that kind of loan is called - person-to-person and it comes with 2% higher rate than getting the load to purchase a vehicle from a dealer. Now this person want to use the said check (in the amount of $30K) to pay off her high interest credit cards than buying a vehicle. So, is it possible? I mean, I personally don't see why not especially when this check is used as if people are writing their own check. Is there any restrictions like it could only be used to purchasing a vehicle? Would Capital One require any documentation about deal to go thru for which the said check was given/loan approved for?
Please share your knowledge.