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  1. #1

    Default 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?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default 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).

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default 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?

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Making Monthly Payments Again on a Charged Off Auto Loan

    Quote Quoting worriedaboutloan
    View Post
    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.

    Quote Quoting worriedaboutloan
    View Post
    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.

    Quote Quoting worriedaboutloan
    View Post
    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.

    Quote Quoting worriedaboutloan
    View Post
    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.

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default 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.

  6. #6
    Join Date
    Nov 2013
    Location
    Chesapeake,Va
    Posts
    51

    Default Re: Making Monthly Payments Again on a Charged Off Auto Loan

    Quote Quoting Disagreeable
    View Post
    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.

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