AboutMike Weikle Expertise Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White
Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability
Experience Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.
Education/Credentials Certified Public Accountant;
JD -- West Virginia College of Law - Order of the Coif
Data Processing Training Old Dominion Bank and IBM
Question I financed a new truck with my bank 2 years ago. I didnt have any established credit therefore my grandmother had to be the primary and I was the co-signer on the vehicle loan. My grandmother just recently passed away last month. I have always made the payments myself, on time and never missed a payment. However my credit score has never really gone up. The bank told me that I was unable to refinance in my own name and I would have to have another person co-sign. Also they will no longer allow me to make payments until the vehicle is refinianced. I dont have anyone else that can co-sign, so my payments will become deliquent and they will ultimately reposses my truck. I havent done anything wrong I have always done right, and now they're going to take my truck. Had we had known about life/liability insurance when buying the vehicle we would have done that. I dont know what to do now. Is there anyway I can turn the truck in and not be have a repo on my credit?
Answer Your Bank may have created a problem for itself in handling your loan in this manner. This just plain smells to me.
Please e-mail me your name and address and your state of residence; the name of the Bank; and the state where your bank is located. It would also help if you could scan your loan agreement and any correspondence you have received from the Bank that says they will not accept payments.
If they are refusing to take your payment, they have effectively called in your loan. Without seeing the loan documents, I cannot tell you if they have a contractual right to call the loan because the maker (your grandmother) died. If they have called in your grandmother's loan and have refused to accept payments from you, then it would appear you could drop off the truck at the Bank and walk in and give them the keys. If they report it as a repossessed vehicle and sully your credit, they could be liable to you for libel and possibly slander too if they have talked about you to another creditor. You may very well be in the driver's seat if you can document the Bank's actions.
If it was all above board that your Grandmother was the borrower in name only and you were actually taking out the loan, they should have told you about credit life insurance if it was available at her age when she obtained the loan for you. They also should have disclosed the loan would be terminated if your grandmother died before the loan was paid off.
Either you are released from all responsibility because they have refused payment, or you are going to have a basis to sue the Bank.
Did they put any of this in writing? If not, you should confirm what they told you in writing and send it certified with a return receipt request. Also have someone (not a relative or close friend) verify the contents of the letter before you send it.
Also, if there is a payment due, send it in to the same address where you have been sending your payments to create a record that they refused your timely payment. They may even accept it.
At any rate, send me your name, address and phone number and I will call you. If I cannot take your case, I can possibly refer you to someone who can assist you. Don't let it go past due without sending in a payment when due.
