Making Monthly Payments on a Charged Off Auto Loan
My question involves an auto loan or repossession in the State of: CA
Everything I've read online says that I cannot make a lump sum payment on my charged off auto loan account except to pay the entire loan balance in full. But the bank I have my auto loan with, (Santander Consumer USA) told me to pay $2,351.98 to get my account in good standing again even though my loan balance is over $10,000. The bank said once I make this lump sum payment I can start making my monthly payments again. I was worried about paying them this large amount of money and then have them repo my car anyway. But then I spoke to a friend who has an auto loan with the same bank and was in my exact same situation and she paid what they asked and is making her monthly payments and her car has not been repo'd. Is what this bank is doing legal?
Re: Making Monthly Payments Again on a Charged Off Auto Loan
Charge-off means nothing to you.
I'm not sure what you are reading. Most lenders will accept any payment on an account, whether you should or not is another matter.
Why would accepting money people delinquently owe you not be legal.
If they'll put it in writing that the lump sum will clear the delinquency, I doubt they will repo you as long as you remain current in the future (and don't otherwise breach the loan).
Re: Making Monthly Payments Again on a Charged Off Auto Loan
Where have you read anything online stating you cannot reinvigorate the loan rather than simply paying it off?
Did your ever receive a 1099 C for the charged off amount?
Re: Making Monthly Payments Again on a Charged Off Auto Loan
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worriedaboutloan
My question involves an auto loan or repossession in the State of: CA
Everything I've read online says that I cannot make a lump sum payment on my charged off auto loan account except to pay the entire loan balance in full.
"Everything" you've read might not have anything to do with your bank's policies.
Your loan contract gives the bank the "option" of calling in the entire balance in the event of default. "Option" means that the bank also can make any other arrangements with you that it wishes.
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worriedaboutloan
But the bank I have my auto loan with, (Santander Consumer USA) told me to pay $2,351.98 to get my account in good standing again even though my loan balance is over $10,000. The bank said once I make this lump sum payment I can start making my monthly payments again.
Sounds reasonable. The bank doesn't want to lose money on the deal so it's giving you the opportunity to make good.
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worriedaboutloan
I was worried about paying them this large amount of money and then have them repo my car anyway.
Then get it in writing.
Once your arrears are brought current and you resume your regular monthly payments on time, the bank will have no reason to repo your car.
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worriedaboutloan
I spoke to a friend who has an auto loan with the same bank and was in my exact same situation and she paid what they asked and is making her monthly payments and her car has not been repo'd. Is what this bank is doing legal?
Yes, it's legal.
Re: Making Monthly Payments Again on a Charged Off Auto Loan
I would get it in writing, however Santander is notorious for working with debtors. They do not want the car back.
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Disagreeable
I would get it in writing, however Santander is notorious for working with debtors. They do not want the car back.
Thats a strange blanket comment for a sub prime lender CURRENTLY under investigation by DOJ for deceptive practices.