Expert: Ontrack Financial Group llc - 7/19/2008

Question
a financed a car about a year and half ago. The car was placed under my sister in law name. She lives in Florida and I live in Arkansas. I had her call the car people and tell them that the payment was going to be made at the middle of the month not the beginning as usual. Well They told her that they found out that the car is not in Florida and that she needed to return it to them by the end of the month or pay the full balance. They have been harassing her left and right, even calling other people trying to get in touch with her and get her to pay. They even showed up at her job nad her home and left a message with someone to tell her she needed to pay by the end of the day. I have had some problems in the past and was not able to give my sister the money for the car until later on down the month but never have they harassed her as much or threatened to report the car stolen. I have some problems now and they are serious so I cant pay yet but I understand that the month can be added to the end of the loan to give me some breathing room. My thing is, can they report the car stolen even though I have been paying them all this time and I'm just barely over the graced period after the due date? Also, can they charge me an extra 50 dollars because I dont have full coverage with my insurance company?

Answer
Pablo,

1. They can not report the car as stolen.

2. If you need a deferment, it's up to the lender to allow an extra month be tacked on the end of a loan.

3.  As stated in all vehicle contracts that are financed, the vehicle has to have full coverage.  If not they will purchase the insurance and bill you for it.

Good Luck  
Michael Moore

Sr. Arbitrator

Ontrack Financial Group

Mike.Moore@ONTFG.com