Help - I got my new car & lender ..

Answer.....Payday loan, Find a center in your area and get an advance, a very costly one until your next payday.

Once you get the payday check, go to a western union and send your mortgage company the late payment.

Call your mortgage company for their routing number.

or this is very risky, use caution.....call your mortgage company and make a check by phone payment.

Usually it will take 3-5 days to clear your bank and in this time you should be paid by then.

I did this in the past with a car payment and it worked out ok, I just missed bouncing the check by a day!

Another question I have is why the lender would want to contact your mortgage company to find out if you are current?? Isn't that usually reflected on your credit report?? Is your mortgage company reporting the account to the credit bureaus?

Ask the lender why they would feel it necessary to want to call your mortgage company to verify you are current when your credit report already reflects that you are current?

BTW, what auto finance company is this?? If they did that to me I would seek business elsewhere!

If you already have the car and the contract signed then the lender is gonna have to suck it up and I can't see why they would want to verify after the fact of you already having the car whether or not you are current with your mortgage company.

Any car I've ever bought I was able to leave the dealership with a signed contract for financing and a car in under an hour.

In fact I just bought a $27,000.00 Jeep Grand Cherokee Limited this past Tuesday, with no money down and approval in 10 minutes with Wells Fargo, I might add I still have a charge off and collection on my TU report and I got financing at 5.67%

If you are not already in the car I would ask the dealership to find another lender and see what they come up with, be honest with the dealership salesman and explain your prediciment to him.

If they can't help leave them and go to another dealership that can, now days they are throwing car loans at people. It seems as if today if you have a job then you have a car!


Good Luck!

Tac

 

You have the papers signed, and the car? What exactly does he want for proof?

 

I just read your updated post, call the lender and explain your situation and that you would be current with your mortgage on Thursday and that they can call them on Friday to verify that fact.

Tell them that you had no other choice but to use your mortgage payment for a down payment.

Frankly, since you are already in the car they really can't do anything unless it is stipulated in the contract. Did you read the contract?

It's a little too late to do underwriting approval work for a loan that is already signed isn't it?

Don't worry and don't lose sleep over this do like I said and it will work out for you!

Tac

 

Please re-read your contract again, see if anywhere in the contract it lists that the creditor can accelerate and demand payment in full for other delinquent credit obligations.

If there isn't anything like that listed then they are SOL!!

I know it's easy for me to say but, again don't worry about this!

If it's not in the contract then they don't have a legal leg to stand on!

Tac

 

I know you need the car but I'd flat out refuse to let ANYONE call my mortgage company. If you were approved for the car loan and the papers are signed then I'd insist on it being a done deal. Who is the lender they got the car financed through. It's none of their flippin business what the status of your mortgage account is. That's what credit reports are for. Are you SURE you are completely financed? Did you sign the title? Did you sign finance agreements? If so and they still insist they have to call your mortgage holder then ask them "Am I 100% approved and financed or not?" If they so "no the deal is not yet final" then tell them to give your thousand bucks back and you will go elsewhere...somewhere where they won't play games.

I can understand that you are nervous but please don't let these people put you on the hot plate like this. You may be fresh out of bankruptcy but don't let this fool make you feel you have to beg and jump through hoops to get a car loan. I have never heard of such malarky in all my life!

 

Missig,

I'm afraid you didn't read your "contract" thoroughly. It must have said something to the effect that the delivery was contingent upon financing/approval. This is a trick commonly used with people who aren't credit-savvy, have prior credit problems, have a low down-payment or any combination of those factors.

Sell the car back (not a voluntary repo), and purchase something within your means. It doesn't have to be new, just adequate. I don't know and am not trying to bash your reasons for BK, but if you're on such precarious financial ground that you can't afford the mortgage payment and a small car downpayment, you shouldn't be buying new, IMHO.

As to verifying additional information, you don't know for sure if this is the last thing they'll ask for, or that you'll be approved at a monthly payment you'll be able to afford. You might be able to buy yourself sometime by explaining that you were led to believe everything was all set once you left the dealership. Since that is not the case, you want to make an appointment to visit the dealership for an explanation first.

Whatever you do, AVOID PAYDAY LOANS!!! You'll just exacerbate the problem.

 

Edit

 

We had a similar problem about 6 years ago. We went into a non franchised dealer. which in itself is not always bad. actually they had a VW franchise but sold every other brand of car on their lot also without being franchised. was actually about 35% new VW products and the rest was used models of usually 5 years old or less. In any event my other half had great credit still, but a ton of it which as many know will work against you. Not to mention we were trading in a vehicle we were quite upside down it (about 4+k). the dealer was aggressive and wanting to make a deal. It was on a weekend and the finance company that the dealer wanted to use closed at noon. He still that day allowed us to trade the car in and take the new one. Top of the week comes up and he calls us telling us we need to bring the car back and redo the terms. We had signed contracts and such but he hadnt yet released the registration to us, if anything but what would barely satisfy a cop should we have gotten pulled over. They wanted more money down to get it done (of course). They ended up getting more ultimately since they pretty much had us in the bag and fairly naive at the time. In reflection it seemed like the dealer knew that we'd most likely get bought but he of course wanted us in the car for a weekend and have to get suckered back to pay more cash. What a slime is all I can say.
I am going to be in the position to need a car very soon but it probably wont happen. I have a dozen or more write offs on my file with a big fat involuntary repo tagged and under 24 months old. not to mention another chargeoff for over 20 grand. pretty dire straights back then. the only good trades I have are a couple of brief car loans from before this. they were with a finance company and wernt for very long terms. one got paid for in about 7 months for over 30 grand (any self respecting loan office would see that real fast as me selling the car before I got buried in it) another auto trade which doesnt even say Auto on it was for about a year and a half.
When you emerge from BK or have lousy credit the dealers and lenders of course want to get you in something that will be preferrably brand new. that ensures something worth while to repo if need be.
I would like to get into something just a few years old. no desire for brand new because that puts me in a much lessor car.
Im sure if you take some of the other poster's good advise you sould come out of this fine. I dont know if a grand down out of bk was a good or bad thing. seems the lenders usually want some earnest money down to make matters easier. Ive heard of some post bk fols getting it done with zero down but you can bet they most likely had some nice auto credit from the past to back em up. Im not sure I have that luxury and my next car will probably be a major pain in the rear to get it bought.
good luck

 

Not the same issue but I once got a new Jeep and a couple of days after I bought it the salesman called me and said he found out they needed me to put more money down. It sounded like a game to me. Get the customer used to driving around in the new vehicle and then act like they need more from you. I told him to get my car that I traded in ready and I would come by to pick it up and the deal is off because he wasn't getting any more money down. He got no more money down and I kept the Jeep. I hate having to deal with auto dealerships.

 

Missi,

First of all, rest easy. I don't think you have a problem.

Closed ended contracts (Installment Agreements) work quite differently than Open Ended Contracts, (Revolving).


A good example of a closed end contract is a car loan. You have a fixed dollar amount, due on the same day every month, for a fixed number of months, 60 for example. Nor do you receive monthly statements, but rather, a payment book. (This is why the FCBA doesn't apply. But I digress).

Once the deal is done and you walk out with the merchandise, that's it. The creditor may NOT come back later and change the terms of the contract, unless it's carefully stipulated in the contract.

I have never seen an auto loan that allows the creditor to do anything unless you default on the loan. You'll want to study your contract of course, as soon as you can, but usually a default means 30 days late with a pmt.

Although this opinon does not address your specific situation, it does have a lot to say about closed end contracts, if we can read between the lines (just a little).

I think the Staff Opinion bellow will help you sleep better.

Marked for Gowen, on April 29, 1999.

http://www.ftc.gov/os/statutes/fcra/gowen.htm#N_3_



UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

Division of Financial Practices
Bureau of Consumer Protection
~
Ronald G. Isaac
Attorney


April 29, 1999

Mr. Don Gowen
Senior Vice President
Security Mutual Financial Services, Inc.
1310 Cantwell Avenue, S.W.
Decatur, Alabama 35601

Dear Mr. Gowen:

Current Borrowers



Your questions raise the issue of whether a creditor in a closed end credit transaction may exploit consumer reports obtained for "review" purposes in order to market its products or services, Or in Missi's case, review her financial situation in order to change the terms of the contract. In the circumstances you described, we believe the answer is "no.". First, "review" is not a purpose for which a closed-end creditor would ordinarily need to obtain consumer reports on its customers. In commenting on the proposed provision which became Section 604(a)(3)(F)(ii), the Senate Committee on Banking, Housing, and Urban Affairs stated:

Like creditors, banks and others may need to consult a consumer's report in order to determine whether the consumer's current account terms should be modified. For example, the institution may provide more favorable pricing terms after consulting the report. The permissible purpose created by this provision, however, is limited to an account review for the purpose of deciding whether to retain or modify current account terms. (emphasis added).(3)

The terms of a closed-end credit transaction are predetermined and generally may not be changed unilaterally by the creditor unless the contract expressly provides for such action (e.g., in the event of default). Therefore, the creditor is unlikely to have a reason to consider "whether to retain or modify current account terms" and, thus, would not have any routine need to procure consumer reports to "review" its accounts.


I trust this answers all of your questions. This is an informal staff opinion and is not binding on the Commission.

Sincerely,

Ronald G. Isaac


--------------------------------------------------------------------------------

Just in case you see the footnote, I'll comment here too.

2. In commenting on Senate Bill 650, which contained provisions very similar to the ones enacted as the "Consumer Credit Reporting Reform Act of 1996," the Senate Committee on Banking, Housing, and Urban Affairs stated:

Section 603(m) makes it clear that the prescreening provisions of the FCRA do not apply where a consumer report is obtained by a creditor in connection with reviewing or collecting an existing account of the consumer for safety and soundness purposes, even if the creditor subsequently decides to change the credit available to the consumer (emphasis added).

S. Rep. No. 104-185 at 33 (1995). Hence, a creditor may obtain consumer reports for the purpose of reviewing its current closed end (or other) credit accounts without having to comply with the FCRA requirements applicable to prescreened transactions.

Let me paraphrase: If the creditor wants to pull a report for an account review his authority to use the information is limited to assertaing safety and soundness. In other words to determine if you'll be on time in the future. But they CANNOT initiate an adverse action, (make terms less favorable to you).

After I consulted the contract (to make sure you're right) I'd tell the creditor: 1) Do not call my mortgage company, because it doesn't matter anyway, and may actually cause damage to your mortgage relationship, and 2) Pound Sand!


But also, make sure you never default.

Let us know whatcha find out in your contract.




Since I wrote that I bounced back and saw what Rina and Kathy wrote. Rina does have a point here. If your contract allows for you to be approved after you sign everything it will say so. You really need that contract to be sure.

Rina is also right, I don't think a new car is a good idea right now, but that's just my educated opinion. But I also didn't get the impression that it was a new car, but rather new to YOU.

Kathy's right in telling them do NOT call my mortgage company. This could really cause problems with your mortgage. Especially now that you're a little late.

 

Re: Re: Help - I got my new car & lender ..

Way to go ruby

 

Re: Re: Help - I got my new car & lender ..

Missig,

This is a VERY common tactic with dealers working with buyers with poor credit. Call their bluff - at the very worst you get your money and any trade you made back. That happens very rarely, though. In many cases if there is a legitimate problem, the dealership will essentially act as your silent co-signer.

In California, all financing auto sales must have what is called a recission clause. It basically states that if the vehicle, for whatever reason, can't be financed as agreed, the deal is void. It also requires both parties sign and agree to any contract modifications "after the fact". I'm betting your state has something similar.

Like Butch says - don't sweat it.