Phoenix, AZ -- (SBWire) -- 08/22/2014 --Auto Loan Default Equals Vehicle Repossession
Lenders must have a legal reason to repossess a person’s car. They cannot simply hire a repossession agent to go and take someone’s vehicle; there has to be some proof that the owner has violated his agreement with the lender. The most common reason for a creditor to take a vehicle back is because the borrower has defaulted on his car loan. What does default consist of, and why can it result in repossession? Credit-yogi.com – the most reliable provider of online monetary direction – has the answers to these questions, and a brief introductory visit can address the following:
- Late Payments
- Missed Payments
- Lack of Insurance
- Defrauding the Creditor
Past-Due Loan Payments
Most people believe that someone must miss several payments to be in default on his loan, but that’s not true, so what does default consist of, and why can it result in repossession? Default has several components, and consistently sending in one’s loan payment late is one of them. Not all lenders consider being late each month default; check the terms of one’s loan agreement to find out the criteria for that lender.
Withheld Payments
When a borrower does not make any payments in several months, that’s default in its most common form. There are ways to deal with not being able to afford one’s monthly payments. One of them is to talk to the lender to find out if he’d be willing to lower the payment in some fashion. The folks at Credit-yogi.com have other ideas about what to ask from one’s lender; just call or stop by the website to access them.
No Car Insurance
Another response to what does default consist of, and why can it result in repossession is that having auto insurance is part of the loan agreement. If a borrower has had his insurance canceled or canceled it himself, that’s default, and a creditor can repossess that person’s vehicle. Most states require at least basic coverage; if the vehicle is under loan, it must be fully covered.
Hiding the Car to Defraud the Lender
If a person hides the vehicle about to be repossessed with the intent to defraud his lender, he is in default. This is not only wrong according to the loan agreement, it’s also legally wrong. He can face steep fines or possible jail time for trying to swindle the creditor, so it is strongly recommended that he just give the car back gracefully. To learn more about default, contact Credit-yogi.com, which has been operational since 1999 and has helped thousands of others facing repossession.
About Credit-yogi.com
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Auto Loan Default Equals Vehicle Repossession