Hi, I bought a used car in 1999 for $9k and paid on time for a couple years. After a layoff in 2001 I got behind and made random payments until March 2002. I have moved quite a bit since then and switched jobs a bunch. I haven't payed on my car loan since March of 2002 and the car is still in my garage (broken by the way, bad tranny). I owe about $6k now after late fees and such. I just got a letter 2 months ago from a CA telling me that I need to make arrangements for payment of the $6k. This is the first contact I've had with anyone for 3 years (due to my moving so much) My credit report shows 180 days late and "unable to locate customer". What should I do? My perspective...My fiance' finally graduated and got a job so I think I can payoff the $6k by the end of the year. My only worry is that one of us will go to jail by then for not paying for 3 years. I would like to pay the loan and then fix the car and drive it. Am I better off just giving it back as a voluntary reposession? Or should I keep avoiding them until I have the $6k?
Why would you go to jail? Debtors don't go to prison in the US, unless you lied on the application, or KNEW you couldn't pay. Unless you owed the government money, or child supportt, which are a far cry from a car note. You're just a bad debt. No worse than an unpaid credit card. Sure, if they can find you, the repo man will likely come for the car, if the bank thinks the car is worth more than $350 or so. But hey, if you can't drive it and can't pay on it, it isn't material where the stupid thing is. I will say that until the bank gets its money, you won't be able to buy a house on credit... and probably not for 2 years or so after you straighten this affair out.
If you stop making payments and return the car that is one thing. Not paying THEN disappearing with the car could make it a stolen vehicle depending on the state you live in. To avoid walking in a situation where you might get arrested for committing a felony check with a lawyer first. Don't assume returning the car after 3 years is a simple repo.
Re: Re: 3 years late on auto loan. HELP This isn't Grand Theft. This is a Civil matter and no law enforcement agency nor Court is going to arrest her or order a warrant or any such thing. It's a Civil Debt. Not a Crime. Her name is on the contract, her name is on the registration of the State if it's registered now. At one point, it was registered. So law enforcement would run a check with the DMV and see she is the registered owner and that will be that. Civil Contract Matters don't get you thrown in Jail. Jane Jane
Re: Re: 3 years late on auto loan. HELP From an auto lease contract: 16) FAILURE TO RETURN VEHICLE: If the Vehicle is not returned when due or within 24 hours after written or oral demand by GMAC, Lessor will be in unlawful possession of the Vehicle, and GMAC may seek the issuance of a warrant for the arrest of anyone in possession of the Vehicle (including Lessor). Written demand is considered delivered 48 hours after GMAC mails a certified letter to Lessor at the home or business address Lessor provides at time of agreement.
Re: Re: Re: 3 years late on auto loan. HELP From an auto lease contract: 16) FAILURE TO RETURN VEHICLE: If the Vehicle is not returned when due or within 24 hours after written or oral demand by GMAC, Lessor will be in unlawful possession of the Vehicle, and GMAC may seek the issuance of a warrant for the arrest of anyone in possession of the Vehicle (including Lessor). Written demand is considered delivered 48 hours after GMAC mails a certified letter to Lessor at the home or business address Lessor provides at time of agreement.
Re: Re: Re: 3 years late on auto loan. HELP I don't know what kind of contract you have there but I don't believe that someone who purchases a car and stops making payments can be thrown in jail for not returning the car. It is a civil matter and you can't go to jail for civil matters. If the person who purchased the car doesn't pay their payments then the car can be repoed. If they don't repo the car it's not the responsibility of the buyer to deliver the car to them. If they want it they can come get it. I would say that the part of the contract you posted is Illegal or applies to a lease or a rental but not a purchase. Jane
Re: Re: Re: 3 years late on auto loan. HELP you are correct, the passage I quoted was from a lease agreement, not a purchase agreement. There are various state laws however, concerning the concealing of the location of secured property. It is a felony in most states
Re: Re: Re: Re: 3 years late on aut FACT: The car is collateral and the loan is a chattel mortgage. Using your line of thinking, ALL the forum members here could buy a vehicle on an installment contract and disappear for 3 YEARS(!) then not make a payment while still keeping the car. Suddenly we go back to the dealer assuming we can return the car and there will be no criminal complaint because it is just a 'civil matter'. Do you really believe something like that? The guy should consult with a lawyer to be on the safe side. You are not doing him any favors with the faulty logic that nothing other than a repo could possibly happen. He had illegal possession of property with significant value for a very long time. It's advice like yours where the forum could really harm someone. Forewarned is forearmed.
Re: Re: Re: Re: 3 years late on auto loan. HELP You can be jailed for contempt of court in civil matters. Ignoring a court order to return secured property is contempt of court
Re: Re: Re: Re: 3 years late on auto loan. HELP Ok first I'm not familiar with auto leases. I'v always purchased my cars. I have never heard of someone being charged with grand theft auto for stopping payments on their auto. This applies to purchases, not leases IMO. Now I really don't believe that on the purchase of a car if you leave the State and take the car with you it's not a crime. That's why you have skip tracers. Let them find the car and repo. There are also laws that limit how a repo person can take your car. For instance, they cannot break into your garage to take the car nor I believe can they enter private property such as your backyard to get your car. Leases I'm sure are very different because you don't own the car. It's similar to a long term auto rental. Jane
Re: Re: Re: Re: 3 years late on aut It's obvious you are talking off the top of your head. Transporting stolen property across state lines, e.g. a car you stopped paying for 3 years ago and DID NOT pay for, now makes it a federal crime. If you don't believe me call your nearest FBI office. They will enlighten you and also be entertained by your attitude that taking someone else's property is not a big deal.
Re: Re: Re: Re: 3 years late on aut This thread has evolved into a discussion that is more appropriate to a legal forum rather than a credit forum. The original poster needs to decide what to do about the car. The advice given to him to check with a lawyer so that he does not run into something unanticipated was well founded.
Re: Re: Re: Re: Re: 3 years late on aut As I said, I am NOT familiar with leases. You are talking about a lease situation NOT a purchase. The FBI IS NOT going to get involved in a Civil matter. However since this is a lease and not a purchase then your theory of Grand Theft Auto MIGHT apply because in a lease you don't buy the car. I would be highly surprised if someone got thrown in jail for a breach of a civil contract. Jane
Re: Re: Re: Re: Re: 3 years late on I will say, when I posted I did not realize the original poster was a leasee. That may make a difference. Get a lawyer if it worries you. Personally, I'd have called the lender the moment the tranny broke and told them where it is, and to come get it. No way I'm fixing the tranny on a car I do not and will not own.
Re: Re: Re: 3 years late on auto loan. HELP There is a big difference between a LEASE and a FINANCE. In a FINANCE you own the car witha lien against it. Violate the contract and it is a civil matter - to chance of law enforcement getting involved because it is civil, not criminal. In a LEASE, you do NOT own the car, you are renting it, and the permission to use it can be revoked by the Leasing Company, who is the actual owner of the vehicle. In that circumstance, it might (depending on the jurisdiction) be cart theft - it may be looked at as a ciovil matter.
Re: Re: Re: Re: 3 years late on auto loan. HELP So is whale hunting in Utah, and with all the real crime out there the police will take just as little interest in arresting someone who has a car a repossessor can't find as they would in pursuiing whale hunters in Utah.
Re: Re: Re: Re: Re: 3 years late on auto loan. HELP That is correct. However, the original poster didn't say their was a court order to return the car so unless or until there is there is no contempt of court. Jane
