Has anyone on here ever had any experience with having a car impounded. What was the process if you chose to not pick the car up. How did it affect your credit score? Do they really take you to court? Did you ever pay the remaining balance after the car sold, even though your not the owner anymore?
2006-10-26 11:07:32 · 4 answers · asked by faisonik 3 in Business & Finance ➔ Credit
Most everyone has pretty much answered accurately so far. First, as to personal experience, no, no car repoed......however, when I practiced, I sued debtors for the deficiency. However, in the US, creditor have to follow the rules to get a deficiency on a car....have to follow Uniform Commercial Code.
By not "picking the car up", I assume that you mean rehabilitate your loan or get it reinstated. That depends upon the creditor and some will want the entire balance; some will want the back payments made up in their entirety, along with their repo costs.
Yes, any bad debt that is REPORTED will affect your credit score adversely.
Yes they will take you to court IF they think that you have the ability to pay any deficiency. If the car is worth more than what you owe on your note, they can take the vehicle and won't sue you for the deficiency, since there isn't one.
A deficiency....the difference in what you owe and what they were able to reasonably recover for sale/disposal of your vehicle is what you owe....whether or not you are the owner. Your agreement to pay (note) is secured by the car....but it's still a promise to pay by contract no matter WHAT the car was worth.
2006-10-26 17:09:41 · answer #1 · answered by MJ 4 · 0⤊ 0⤋
If your car has been repoed it is going to hurt your credit big time. The balance owed is still owed. They are going to deduct what they got for selling the car, but they are going to charge interest and penalties on top of your remaining balance. The current ownership of the car is completely irrelevant.
After the repo gets put on your credit you will probably not be able to finance any major purchase for several years. When they (financial institutions) eventually start to trust you again they are going to charge you an outrageous interest rate.
Unfortunately, there is little in the way of good news here. A repo is almost as bad as a bankruptcy. Good luck.
2006-10-26 14:13:27 · answer #2 · answered by ZCT 7 · 0⤊ 0⤋
It negatively affects your credit score. You're still responsible for the balance owed on the vehicle whether you have it or not. They can bring a judgement or warrent against you if you refuse to pay the balance. That can stay up to 10 years on your report. Do the right thing and get the car out! If you don't want the vehicle, sell it!
2006-10-26 11:12:48 · answer #3 · answered by jess_offramp 3 · 1⤊ 0⤋
a buddy of mine did, and it went something like this
his car was repoed, he told the company to screw off
they sued him, garnished his wages for his entire balance
then turned around and re-sold his car (he has since paid it off)
he gets so pissed when we see it driving down the road
2006-10-26 14:39:06 · answer #4 · answered by mike mann 2 · 0⤊ 0⤋