Asked 6/9/2011
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Can recovery company for a car repo still charge you intrest on what is left on the car lone? I lost my job so i couldn't make my car payment. My car got reposed. Then my car went to ction they sold it for $6,000 and after they took that out of the lone there was still 18,000 left from the lone. I've been paying on it for a year and now i owe 19,000. Is it normal for them to still add intrest? |
Answer 1/4 - Submitted 6/9/2011
Answer 2/4 - Submitted 6/9/2011
If your car is repossessed due to non-payment or late payments, the bank or loan holder can resale the car. Often, they will sale the car through an auction. People who attend, of course, want to pay the least amount possible. So, the loan holder, takes the highest bid, which is often substantially less than the amount owed on the car. Legally, the loan holder or bank can ask you to reimburse them for the difference of what's owed and what they received through the car sale. They can continue with whatever amount of interest you agreed to when you signed for the loan. You can attempt to compromise with the loan company for lower amount owed on the car or consider filing bankruptcy as a last resort.
Answer 3/4 - Submitted 6/9/2011
Answer 4/4 - Submitted 6/9/2011
Of course the interest will continue to accrue. Interest is a charge to the borrower for loaning the money. This is how the banks make money. Whether or not the the car was sold, if there is money still remaining to be paid, the interest will continue to accrue until the loan is paid off.
It sounds like you have not really been making payments on the loan. If you had a balance of 18K, and it is currently at 19K, you have not been making timely payments.
You should contact the creditor to see if you can work out a negotiation or a settlement.
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