Can a financial institution report a CAR STOLEN for a debt owed, im looking at 3 months late payments?

Question

Thank you for the help guys... sorry I should clear this up. I did not steal the car nor will I report it stolen. What I was asking ,was can a bank report a car stolen if I havent paid on it?? i dont want to drive a car thats stolen and get pulled over..ya know! thanks for all your help

Answer 1

Stolen? I doubt it, unless they had it on their lot and you came and took it back, but it may not be your car now. If you have not been talking to them to work something out, they may have started the repossession process after you hit 30 days overdue.

Answer 2

I used to be a car loan collector and worked total loss accounts and account over 180 days past due.

A financial institution will not report your car as stolen when you are past due. After a certain amount of time, however, they will begin the repo process.

If your car is repo-ed, you will still be liable for the amount left after the vehicle has gone to auction.

As the banker suggested, if you cannot afford the payments, sell the vehicle and get a cheaper car.

If you sell the car for decent amount, you should call the lender and see if you can settle the account for less.

If you aren't making a payment soon, be wary of repossession.

Hint: Call in from a pay phone or untraceable number, as a collector I had caller ID and was required to call all back phone numbers in the account. I could also call nearbys to the listed address, send a contact person to the listed address, call references from the contract, and get phone information and past jobs from the credit report. State laws can also play a big part in contact allowed. For example, Massachusetts has very strict laws about collection agencies contacting debtors.

Best of luck!

Answer 3

Doesn't matter if your car is stolen or not. If stolen, your insurance would have to pick up the replacement cost and the bank would recapture the outstanding debt that way. If not, the bank will reposess your car and then most likely sue you for any deficiency (the difference between what they auctioned/sold your car for and what you owe them)

If stolen, this would require you to file a police report, etc. In the event you car is not stolen and you report it as such, you do not only face false reporting charges, but also insurance fraud which is a felony and punishable by 5 to 10 years in additon to up to $25,000 in fines depending on which State you live in.

If I were you I would sell your car and buy a cheaper one - you can't afford it!