2007-03-11 05:35:41 · 7 answers · asked by ejb 1 in Cars & Transportation ➔ Buying & Selling
If you let your car insurance lapse, even briefly> Yes, this could happen.
If there is a lien on a vehicle, you are obligated to carry full coverage insurance. When you signed loan contracts, you had to provide proof of this.
If you fail to make an insurance payment, your insurance lapses. The insurance company is obligated to report this to the lender. All cancellations are required by law to be reported to the lender.
The lender can & will legally put insurance on the vehicle & they will add a 'more than sufficient' dollar amount to your monthly note to cover the cost. They don't need your consent. they don't even have to notify you.
This can happen even when you change insurance companies, if you fail to notify the bank of your change.
The bank/lender will usually waive these fees when they can verify that your new insurance policy is active.
Hope this helps.
2007-03-11 06:10:25 · answer #1 · answered by Vicky 7 · 1⤊ 0⤋
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2016-09-26 21:48:35 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I would look at the contract and see what it says. Normally I only see increases like this in adjustable rate loans (usually in mortgages) Did you fall behind in the note or did the lender need to incur other expenses for some reason? If you are still unsure of your rights, I would visit with an attorney in your local area. Many offer free initial consultations.
2007-03-11 05:42:05 · answer #3 · answered by Rabbit 5 · 0⤊ 0⤋
Notes have a specific interest rate built in unless it has a variable rate. If yours has a specific interest rate for the term of the loan and you haven't violated the terms of it, call them and advise them you'll pursue legal action if they don't correct the error.
If it is variable, they can change it for specific reasons; again, if you feel the rate has been changed in error, call for an explanation. If you feel you are being overcharged, contact the BBB, the state banking comission or an atty for advise.
2007-03-11 05:41:30 · answer #4 · answered by wizjp 7 · 0⤊ 0⤋
Increase you note? Didn't you sign a written contract with terms stated on what you are to pay monthly? They cannot charge you for more than stipulated in the contract, for the duration of the contract. If you have no contract, other than verbal agreement, then you are in hot water.
2007-03-11 05:40:51 · answer #5 · answered by WC 7 · 0⤊ 0⤋
make sure its not a variable % rate and it might be fee's or other taxes that have gotten put on. I would call them and see what is up.
a house payment can go up and down due to variable %, but normally a car loan is set in stone the day you sign (normally)
2007-03-11 05:44:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The only reason it should or would change is if you didn't have a set interest rate at time of purchase.
2007-03-11 05:46:02 · answer #7 · answered by alleyshax 3 · 0⤊ 0⤋