I have a question about Fifth Third Bank Collections Dept
Date: Thu, 06/28/2007 - 15:29
Technically, I would think they could. Just because the princip
Technically, I would think they could. Just because the principle is paid doesn't mean you don't still legimatly owe on the account. That doesn't mean they would repo, just that they could. I would think that if the payments were still being made then they wouldn't bother, but you never know.
I would try to set up some sort of payment arrangements with them. It would suck to lose a car over such a small amount of money. Maybe they will allow you to pay a portion of the late fees each month for a few months until it's paid off. Or maybe you can talk to them and convince them the take the fees off. It's worth a try! :D
Depends on what your contract says. Most likely they can.
Depends on what your contract says. Most likely they can.
I guess every state is different ... in Illinois I can't charge
I guess every state is different ... in Illinois I can't charge a late fee until the account is 10 days late.
In order to reposess collateral, the account would need to be in default. Unless your contract specifically says that you MUST pay for a late fee when it is assessed, then there is no default for not paying it ... excepting that upon maturity all late fees will become payable, and at that time they could consider the account in default. There is usually a very distinct paragraph in your contract that desribes what constitutes "default" -- ie 1) failure to keep adequate insurance, 2) your own insolvency, 3) lender deems itself insecure, etc. The contract would need to explicitly say something like "failure of the debtor to include and pay for a late charge that is assessed on any installment payment at the time that payment is made." Late fees sit in a separate "hopper" and are really not attributable to the overall account delinquency until maturity.
This is evidenced by the Federal Credit Practices Rule, which says a lender can not charge you a late fee for not paying an earlier late fee ... also known as "pyramiding late fees."
I have never repo'd a car over late fees, and it doesn't make very much sense to. If I have a customer that made all the payments but still owes me late fees, I usually just hold onto the title and do not release my lien until they are paid.
