I am behind on my car payment. I just received a letter from GMAC stating that they are going to "charge off my account" as bad debt. And that the account would be turned over to a collection agency. That they are going to hold my title until the account is paid.
My question is are they going to reposses the vehicle?
2007-01-09 07:22:16 · 5 answers · asked by to_sassy4_u 5 in Business & Finance ➔ Personal Finance
The car is a 2001 Pontiac Grand-Am, with 190,000 miles on it. It's on it's last leg.
The reason for non payment is because the Fuel pump went out which was 650 to fix. So I had to decide fix the car or make the payment. I'm a single mother of two, barely making ends meet.
2007-01-09 07:44:22 · update #1
Thats a good question......for which the answer is problematic.
1) You owe the money to the finance company but have not paid it (for some time apparently or they would not be charging it off)
2) The collection agency will either act for GMAC as an agent or, if GMAC has sold the note at a discount, will be the new legal owners of your car. In either event THEY can have it repo'd. IF they do is entirely up to them. If the car has value the odds are pretty good since they can recover their costs by selling it.
3) The charge off annotation on your credit report is a pretty bad thing. It means that for 7 years that will follow you around and you will be stuck with paying premium interest rates if you can even find someone to lend you money or credit. You should contact them to see if you can find a better solution (lower payment and an extended loan... etc...) that way you can preserve some of your credit and not worry about a repo.
good luck..
.
2007-01-09 07:34:07 · answer #1 · answered by ca_surveyor 7 · 0⤊ 0⤋
If they repossess your car, then you are in trouble. This messes up your credit for 10 years.
The repo company will sell you car (for a small amount) then take the amount received from the sale and reduce your loan with that. So you will still owe money.
So try your best to catch back up. Good Luck!
2007-01-09 07:37:04 · answer #2 · answered by MR MONEY 3 · 0⤊ 0⤋
If those are cutting-edge energetic money owed, paying off the balances will supply your score a speedy develop. carrying balances of better than 30% of your accessible reduce hurts your score. yet even better, you'll save a small fortune in pastime!! $75K in mastercard debt is ridiculous. charge playing cards are couple of minutes period convenience, not lengthy time period financing.
2016-12-02 01:28:56 · answer #3 · answered by molander 3 · 0⤊ 0⤋
Once they turn over to a collection agent, repossession procedures will porbably begin immediately
2007-01-09 07:28:11 · answer #4 · answered by angihorn2006 4 · 0⤊ 0⤋
yes! call the company directly and see if you can work something out with them. they are always willing to work with you - see if you can work out a payment plan.
2007-01-09 07:29:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋