They tacked on an additional @$2700 onto my loan and since that time my car payment went from $350 a month to $700 a month. Before this happened, my credit was good, and since after that time my credit changed drastically. I've been told that this may be illegal. If anyone has info, please let me know. Oh, and this is in CALIFORNIA.
Thanks!
2007-06-19 10:57:07 · 13 answers · asked by Cito 3 in Business & Finance ➔ Credit
If you let the full coverage insurance drop on your vehicle? They do have the right to do this it's called "Forced place insurance" the auto loan companies have been doing this for years.
The only way to get it removed is to get your own insurance and then prove to your credit union that you have insured the vehicle.
2007-06-19 11:03:05 · answer #1 · answered by ? 7 · 3⤊ 0⤋
You should visit HTTP://CREDIT.QUOTESDEAL.NET I am sure here you can find the best option for you
RE Can a credit union force car insurance on an auto loan after financing has already been established?
They tacked on an additional @$2700 onto my loan and since that time my car payment went from $350 a month to $700 a month. Before this happened, my credit was good, and since after that time my credit changed drastically. I've been told that this may be illegal. If anyone has info, please let me know. Oh, and this is in CALIFORNIA.
Thanks!
2014-09-13 22:23:02 · answer #2 · answered by Radcliffe 1 · 0⤊ 1⤋
1
2016-09-24 22:58:54 · answer #3 · answered by ? 3 · 0⤊ 1⤋
It's standard practice, actually.
Lenders require that you carry insurance on any vehicle that still has a lien (because the vehicle is their collatoral, which means they'll take it back if you stop paying.)
However, since industry deregulation now allows the lenders to also be the insurance providers, there's been a HUGE trend for lienholders to, er... well, let's not say INTENTIONALLY ignore the fact that your own private auto insurance company may very well have sent proof of insurance on your behalf, but there does seem to be a very noticable trend in the number of times that happens.
If you had the required insurance on the vehicle at the time the lenders are saying you did not, it's really a simple matter of sending them proof. I've had cases where I've sent proof multiple times, though (to their addresses and/or fax numbers listed in the correspondence sent directly to the borrowers) only to have them insist that they never received it.
In general, I find that threatening to turn them into the state Insurance Commissioner (and, of course, maintaining all documentation to back up your claim) usually resolves the situation.
However, if you did not have the required insurance, they are perfectly within their rights to force it upon you. Still, that doesn't mean you have to KEEP it. You can go out and get your own policy -- usually MUCH cheaper and demand their coverage be removed once your policy is in effect.
2007-06-19 11:35:19 · answer #4 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
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RE:Can a credit union force car insurance on an auto loan after financing has already been established?
2014-07-25 06:24:52 · answer #5 · answered by Anonymous · 1⤊ 0⤋
The only thing I can do is reinforce what the others have said before me. If you look at your docs, you should have a doc that is titled "Agreement to Provide Insurance". This doc, that you inevitably signed, states that you agree to provide insurance on the vehicle or the credit union reserves the right to impose it on the vehicle and add the premium to your loan.
2007-06-19 11:12:09 · answer #6 · answered by Texas Girl 3 · 0⤊ 0⤋
your question doesn't make sense. No one has car insurance on an auto loan.
In CA, the law requires everyone to have car insurance. If you are financing your car, you are required to have car insurance by the lender, this is to protect the lender. From what you are trying to ask here, i believe you financed your car but your insurance lapsed, the lender bought the car insurance for you and billed you for the premium. If that's what you are asking, then the answer it's yes, they can forced car insurance on your financed car.
If you have already paid off your car, even though you are required by law to have car insurance, you don't have to get it if you don't want to like all the non-insured people trying to save a few bucks on insurance, then when they get into an accident, they cry foul.
2007-06-19 11:09:22 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Of course they have the right to do so. The automobile is their collateral. If you do not properly insure it on your own and protect their investment, they will do it for you. The same applies to homeowners who let home insurance lapse. The mortgage firm will slap on their OWN coverage until you get your own back. It's ungodly expensive, and generally wakes up most people.
2007-06-19 11:11:56 · answer #8 · answered by acermill 7 · 1⤊ 0⤋
What if you get insurance, can they continue with their insurance on top of that????
2017-04-19 18:52:51 · answer #9 · answered by Andrea 1 · 0⤊ 0⤋
Yes, they do it to protect their investment. If you get in a wreck without insurance you & the credit union are screwed. Get your own insurance and pay mo to mo.
They are within their legal rights I do believe if you read your docs with them you signed off on that stipulation.
2007-06-19 11:08:06 · answer #10 · answered by theladygeorge 5 · 2⤊ 0⤋