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What about the secured debt like your car?

Submitted by f8thinchrist on Fri, 08/31/2007 - 18:03
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I know that a lot of folks get in trouble with credit card debt, but what about when your car is behind? Because it's secured debt, is there any recourse to save your car? The company is not always willing to work with me or perhaps I just spoke to the wrong person.


As far as I know, wherever you have a loan, for your vehicle ( bank or finance company), they CAN come get it. Usually, they will give you a 'grace period' to try and catch up on payments. Can you tell me alittle more about your situation and where you have a vehicle financed through??


Submitted by sdchargers_63 on Fri, 08/31/2007 - 18:24

sdchargers_63

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Thanks for your quick reply! My husband and I have been playing catch up with our bills for a while after a job strike and a brief unemployment period. It's really starting to get discouraging. How can we save if everytime we do save, something happens and the little bit of savings is gone? I'm not making excuses but do take responsibility for the poor choices we've made that have led to being in this situation. The good thing is that we have very little credit card debt ($1000) but most of our debt is either the car or loans that we have which have very high interest rates and are behind. My car is financed through Triad Financial/Roadloans.com. I really don't want to lose my car and have made payments just really late. To be honest, I'm a little scared because that they only car we have. With 2 small children, we need it.


Submitted by f8thinchrist on Fri, 08/31/2007 - 18:55

f8thinchrist

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Technically (ie disclaimer), anytime a secured account is in default/delinquent, the creditor can reposess the vehicle. All companies are different, have different policies, so don't take what I say to be Triad's position...

The main concern a creditor has is that you will stop paying and skip out on the loan. In that sense, they are not going to let you drive a car for free if you flat-out stop paying altogether. But, it sounds like you have been making payments on the account ... just that you got pretty behind, and haven't been able to catch up.

Triad is a competitor of mine and I would tend to think we operate nearly the same. If I have a customer that has fallen behind but still making payments ... and that customer is slowly catching up on the past-due amount ... then I will not repo the vehicle. As long as you are making steady payments, I don't think you will be on the top of their list for a repossession. They have other people to worry about (the one's that aren't paying at all). On top of that, it's a big hassle to repo a car, and a creditor almost never sells it for as much as the customer owes on the account. So they really don't want to have to repo it.

I don't know how past-due you are. But they haven't repo'd it yet, which is a good sign. But don't ignore it. Call them, let them know that you realize you need to take care of your delinquency. And come up with a plan. Maybe send in 1 1/2 payments from now until caught up. Let them know your plan, they will probably agree to it. And then don't fall through on your promise.

I think you will be alright, good luck.


Submitted by DebtCruncher on Fri, 08/31/2007 - 19:27

DebtCruncher

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I only have approximately $4,500 left to pay but I am (as of today) 3 months behind. I have just sent a payment which will get to them after the due date making me 3 months behind.

I guess I am scared to call because of past experiences, but I know that I have to do something.

Thanks for your responses! :-)


Submitted by f8thinchrist on Fri, 08/31/2007 - 19:40

f8thinchrist

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PS I just read the part where you said they are not always willing to work with you.

Delinquency is a numbers game to companies like this, and me too. Every account over 30-days past-due shows up on a report at the end of the month, and acts as an overall measure of the company's performance. Some collectors/managers get paid based on how many accounts are showing delinquent on that report. So naturally, the goal is to get as many people to pay up before the month is over.

The collector you spoke to tends to "escalate" the urgency of bringing the account current. Fear will make you pay the full past-due amount, which will get your account off of that master report.

It is not up that individual collector to determine whether your car is repo'd or not. It's usually up to a collection supervisor/manager to decide when to repo a car. He/she is just rattling your cage a bit.

Call back, ask for a supervisor, explain why you became delinquent and how you plan to correct it. Just don't get PO'd and blow up at them or start yelling in their ear, it's not good for either of you.


Submitted by DebtCruncher on Fri, 08/31/2007 - 19:42

DebtCruncher

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I know it's a scary thing to call in. But not calling is worse, because then they think you are ignoring it.

Just be calm when you call. Break the ice a little, you can even tell them you were afraid to call because you thought they would yell. I know if someone told me that, I wouldn't start off on the offensive. Just be straight up with them. Kind of like negotiating, they want the full past-due amount, you just want to pay the regular payment amount, you both need to agree somewhere in the middle.


Submitted by DebtCruncher on Fri, 08/31/2007 - 19:49

DebtCruncher

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Ok, here's what ended up happening: A call was placed to Triad soon after I posted. The guy was a real jerk so that conversation ended before it could get worse. I wrote the company a letter explaining my situation as well as my husband offered to call for me too. (He's much calmer than I am.) After several conversations and Triad finally getting my letter, they agreed to restructure my loan so that I can get caught up (along with the 2 payments I have already sent in). The same representative is sending me the paperwork today. Just wanted to thank you all for your encouragement. This was hard, but it had to be done or else I'd lose my car. Thanks again! o/


Submitted by on Wed, 09/19/2007 - 13:49

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Well thank god they were willing to work with you. I can't imagine that they would really want to mess with a repossession, with cost of the repo man and selling the car at auction and not getting the full amount of the loan. It is in your favor that you worked with them. Just keep them updated and they should work with you. It's the ones that ignore the situation that things get bad.

ladybug


Submitted by ladybug on Wed, 09/19/2007 - 22:17

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hey, Guest..sounds like you did 'your part'. By that I mean you were willing to deal with it and work something out. I've read alot of posts, on similiar things. However, the people who were posting them DIN'T write letters or try to call, etc. When something gt re-possed, ( etc), they wonder why. ALOT of people/comapnies will work with you, if they know you are making an attempt. However......I know ( from experience) some companies are almost impossible to work with.


Submitted by sdchargers_63 on Thu, 09/20/2007 - 01:55

sdchargers_63

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I have an issue where my husband called and spoke with our account manager after going through the steps to get to her on the automated system, he asked about making the our late payments via auto check later this month, she said Ok I need such and so, he asked for her extension so he could call and ask me ok for the amount etc., he called her back within 10 minutes, someone else picked up her extension, he explained he talked to so -n- so (forgot to write down name, dodo) and she said ok so here is the info, the man takes the information gives confirmation number, we are all set. Behind but we are set to make a payment - cool. now today, a week later we get a call saying they can revoke the agreement for the 29th and that my husband lied , the man was who called and he escalated the situation badly, transfered me to our account manager she said I remember talking to him but I didn't agree to anything, I asked her why she didn't put notes in the system of what we had requested and we would be calling back within 10 - 20 minutes? she then transferred me to the supervisor who proceeded to throw me over a barrel yelling at me. I asked her what the plan was, did she intend to revoke the amount we were set to pay on the 29th, she yelled at me telling me Triad was not going to hold up their end of the deal if I didn't hold up mine, I was holding up mine the 29th isn't even here yet. We have heard nothing from them in a week and now today I need to make a payment today, and I can't. I have no where to borrow money from. We have a child who is barely a year old and has been really sick in the last couple of months when we got behind. I am behind with more than Triad. I understand where I am wrong, I just don't get how they can yell at people. I am sure there are many others who owe far more than I do, I can't do anything I am in a very stressed situation and can't even pay rent :-( Money is all they see, trying not to take it personally. I guess I will take the bus like the man at Triad said I should. :cry :? :(


Submitted by on Wed, 08/20/2008 - 13:45

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If a collector even thinks about getting abusive then give them the dial tone. Also, don't make any verbal agreements ever. They will lie and say no agreement existed. Only accept written agreements. Personally I would take this entire debt and make them give you a set agreement in writing for the amount due and the set payment amount each month. Don't make an agreement you can not stick to otherwise it will probably void the agreement. Finally, never, ever pay unsecured debt before you feed your child and pay your rent and as soon as a debt collector suggest otherwise then hang up.


Submitted by DOLLARSandSINCE on Wed, 08/20/2008 - 14:00

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Tilliesmom, I'm very sorry you are having so much trouble. Since it's a car loan (secured), they can repossess the car, but that may not be what they really want to do. Perhaps you could call back and talk calmly to someone else. If that person gives you a hard time, hang up and try again a little while later. Maybe you'll get lucky and get someone who will be willing to work with you.

However, even with a secured loan, you need to take care of your necessities, like rent and food first. So don't let them force you into making an agreement that you can't live with.


Submitted by alias1958 on Wed, 08/20/2008 - 14:29

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