Legal Question in Consumer Law in California
Legal what can a car fiance do it i make late payments? I am talking about 2 days after the grace period.
Asked on 1/04/12, 2:05 pm
1 Answer from Attorneys
Stephen Barnes
Barnes Law Firm
The finance company can repossess the car if you are beynod the grace period. They must allow you 1 time to re-instate the contract within a 12 month time frame, subject to certain requirements. To re-instate you would have to pay all past due payments, any payment due within 15 days, and repossession charges.
If you do not re-instate the contract then the car would be sold at auction most likely. The sale price would be applied to your outstanding loan balance. If there is any amount still owed on the contract after applying the sale price of the car the finance company could sue you for that amount.
Answered on 1/04/12, 2:39 pm
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