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  1. #1

    Default Can You be Required to Pay Late Payments in a Lump Sum at the End of a Loan

    My question involves a consumer law issue in the State of: California

    I am at end of a auto loan, due to money issues here and there the finance company offered to put a couple of payments at the end of the loan. According to my calculations my payments would be done in March. I went online to make a payment and I was unable to make a payment. I called the finance company and was told I was 100 days behind and I would have to pay the remaining amount in full. I paid my last payment I December,and yes I was late for the Jan payment but not a 100 days. I'm told that my account is reflecting that is because my loan matured. This may be a dumb question but do I have any recourse? Not once was it explained to me that I would have to pay a lump sum at the end of the loan(I'm sure it was in the contract). I have decent credit and have been working on improving my score. I have not received any late notices. I'm sure that my credit is affected. I want to pay it off but I can't afford to pay in full do you know if the finance company can/will work with me?

  2. #2
    Join Date
    Mar 2013
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    16,758

    Default Re: Charge Off

    Quote Quoting wanasworld01@gmail.com
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    My question involves a consumer law issue in the State of: California

    I am at end of a auto loan, due to money issues here and there the finance company offered to put a couple of payments at the end of the loan. According to my calculations my payments would be done in March.
    I'm guessing that you relied on something you were told on the phone back when, without getting anything in writing and the loan went into default automatically when you missed those payments.

    Quote Quoting wanasworld01@gmail.com
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    I want to pay it off but I can't afford to pay in full do you know if the finance company can/will work with me?
    No way to tell. All I can suggest is that you call the lender's collection department now and see what you can arrange. Make sure you get the person's full name, position, and confirmation in writing whatever you agree to.

    Go to www.annualcreditreport.com and pull any one of the three credit reports and see what your lender has reported.

  3. #3
    Join Date
    Jul 2018
    Posts
    1,186

    Default Re: Charge Off

    Quote Quoting wanasworld01@gmail.com
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    This may be a dumb question but do I have any recourse?
    Recourse for what? Obviously, we have no information about exactly how the lender handled the accounting of your loan, and you didn't tell us whether the lender agreed in writing to the accommodations you mentioned. I'm also trying to figure out what you're trying to accomplish. If you want to make a payment and can't do it online, mail a check. And, if you intended to pay off the loan next month, then do it.


    Quote Quoting wanasworld01@gmail.com
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    Not once was it explained to me that I would have to pay a lump sum at the end of the loan(I'm sure it was in the contract).
    What did you think it meant "to put a couple of payments at the end of the loan"?


    Quote Quoting wanasworld01@gmail.com
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    I want to pay it off but I can't afford to pay in full do you know if the finance company can/will work with me?
    How could anyone here have any idea whether (and if so, to what extent) some unknown company might "work with" you? And no, that's not a request that you identify the company. The only way to find out if the company will accommodate you in any way is to call and ask.

  4. #4
    Join Date
    Sep 2005
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    Behind a Desk
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    98,844

    Default Re: Charge Off

    If your concern is that the car may be repossessed before you pay off the balance, if you make additional monthly payments as opposed to paying a lump sum, then you have cause to find the money to pay your balance. Similarly if you are concerned about your credit score it makes sense to pay off arrears earlier as opposed to later. But if you pay the remaining balance of your loan including interest and penalties over two or three months instead of paying in a lump sum, the lender is okay with that even though it would prefer a lump sum and will not attempt repossession, and you don't mind the lateness being reflected on your credit report, then you can pay on a slower time table even if the lender prefers immediate payment in full.

  5. #5
    Join Date
    Jul 2014
    Posts
    173

    Default Re: Charge Off

    If you are concerned about your credit score, you should pay your bills on time. Alternatively, if you don't care about your credit score, go ahead and pay your bills late, although your lenders wont like that as much.

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