[mimomof4]

My question involves an auto loan or repossession in the State of: Michigan. In June 2002, my husband purchased a truck and financed it with AmeriCredit. We paid our payments and were doing okay, until he was hurt at work. He had to have surgery last year and was off for several weeks. We fell behind on our payments, but, kept in contact with AmeriCredit and made partial payments(which they accepted) to try to keep them from repossessing it. Well, the loan matured on January 2, 2008 and we owed a total of $3,800 (approximately.) He is working and we have been trying to catch up on our bills, and we have made several payments to them in the amount of what was our original monthly payment, which they have accepted. Now they tell me that because the loan has expired, and is considered unsecured, they are reviewing it for repossession. My question is: can they repossess it when we owe only $2200 on it and are making regular payments on that balance that they keep accepting? We have paid on this truck for 5 1/2 years, the original loan amount was $25,000 and we have paid more than 90% of it off. What can I do?

[LawResearcherMissy]

Yes, they can repossess it. Generally speaking, when you miss a single payment, the lender can repossess.

Have you considered taking out a personal loan through your bank or credit union to pay the balance?

[mimomof4]

Basically what is owed on the vehicle are the deferred payments from when my husband was off work. They have continued to accept payments on the deferred amount, even though the contract has expired. They also have not sent us anything in writing indicating what is still owed and demanding payment. I thought that they were required to do that before they can repo the vehicle. I just want to understand our rights better...if we even have any.

[LawResearcherMissy]

Basically what is owed on the vehicle are the deferred payments from when my husband was off work. They have continued to accept payments on the deferred amount, even though the contract has expired.

That does not preclude them from repossessing. Granted, with so little owed, it hardly makes sense to do so, but we're talking about what they're permitted to do, not what is sensible.

Michigan Repossession laws are here.

[mimomof4]

I have tried to find information on the consumers rights in repossession on the internet, but have had no luck. Do we have any rights? Or do we just give up the truck and rollover to play dead? It is our full intention to pay off the truck, but, don't have the $2200 cash to do so, that is why we have kept making monthly payments on it. We don't qualify for a personal loan through our credit union because of my husbands past bankruptcy, we have tried and been turned down. I thought that if they kept accepting the payments from us, as they have been doing, that they basically extended the contract and that they could not repo as long as they took the payments, but noone can tell whether this is true or not. I truly do not understand what if any rights we have...this is our last car loan ever. we are not doing this again. I don't like owing money to anybody.

[aaron]

Michigan's laws covering repossession, recovery of a vehicle, sale and deficiency, are here.