To all Clients of Bad Car Loans
I am retired credit agent, and can't believe all the complaining about these bad car loan companies. Here is some information on how to handle all these loan companies who you have substandard car loans with.
Remember, We are in recession, close to a depression, and these companies who have made bad loans to you, are strapped for cash, just like you, so when they call you, they need your $ and loan current since middle management is about to have their ass handed to them for making these non performing loans to all you substandard risks. So they are putting pressure on the collections dept to get the loans paid under 30 days or as close to current as possible.
If you can pay around 30 days late, do it, don't let their threats concern you, at this time, they don't really want your car, they have too many cars that are already repoed, and they can't sell them at auction so they are losing their ass on repos, and will do all they can to avoid repoing your car, even if they say they will.
If you can't pay, string these collection departments along, ask them for extensions or payment date changes, if you havent done that, they will give those to you provided you qualify and sometime even if you don't. Feed them good excuses, your work is slow, death in family, spouse just out of hospital and loss of income, ect ect, be creative. Don't say, just behind on bills, or took vacation, that is asking to have a red flag on your loan.
If over 40 days, now they bump your loan to so called high pressure collectors, but again, they want "your money" not your car, so BS them if you cant pay, by saying "my checking account is overdrawn and bank has hold on my funds". When they say borrow funds, tell them you are checking with family and friends and you are waiting on answer. Tell then You cant do cash advance places, since you are already maxed out at what ever one they suggest.
If you lose your job, and know you can't pay the loan from 40 days and up, now you have to make a hard line decision. Do you want to keep driving the car for as long as possible, and become what is known as a full blown skip, then you have to do what ever possible to hide it, and remeber you will be out for repo at about 55 days and up, and so if you can't pay, and want to drive you have to be clever and remember, they have all kinds of tools to check on your last residence, job, where car is registered, what insurance you have, as sources to find you, besides credit check and lex nex to name a few sources. At 120 days, your loan charges off, and they lose and have a bad write off, and this hits them on the bottom corporate line, profit. But they are still going to look for their car, yes their car, and Giving up the car is allowing them to win, and you lose on your credit, and a repo is a repo, whether they get you or you voluntary surrender the car, so don't just give it up to them, you are screwed and all they care about is getting that car back.
After all, it is their bad loan and they are charging you a very high interest rate, 18 to 25 %, since your credit wasn't that good at time of loan and you didn't care what they charged you, when at the dealership, so they took you for all they could, since they knew all you wanted was that car, and you signed on the dotted line, so now make it as expensive and hard for them as possible, there is nothing wrong with buying yourself time to see if you can get the funds.
In this economy you won't be able to get another car loan, since your credit score will have to be 650 or higher and you will have to put at least 10 to 20% down.
If you are employeed, once they get the car back, the corporate attorneys are really going to go after you, for the balance still owed, and have legal means that is within the law, but not fun for you, and they can file leans on other property your own, even garnish your wages at anytime from 7 to 10 years after reposession, so you are on the hook no matter what you do, except chapter 7 bankruptcy.
Digest this and stop whinning about your bad loan, there is more to learn on how to buy you time, but that is very close to breaking the law, so I will stop for the time being... Copy this info, and post on as many other web sites as possible, this will help others and will spread this news... Knowledge is power, and that is your best weapon and all you want to do legally... So one last bit of info, called FDCPA, look this up on internet and be informed...
Realnews
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