Complaint Review: ARCADIA FINANCIAL - CAROL STREAM Illinois

It doesn't work that way. If you don't make the payments, the finance company has the option of repossessing the car. You may help them by arranging for them to come get the car, or they may sneak up and take it. The results to the consumer are exactly the same in either case. It goes on your credit report as "repo", of which there is no distinction whether it was voluntary or not. Repos will majorly lower your credit rating, to "ruined" status. Also the finance company will always claim that they sold the car for a very small amount (which may actually be the truth in the case of a problematic Kia, redundant as that is), thus you still owe nearly the full amount. They will have debt collectors call you constantly, and they may sue you for it (though with someone on disability, it's usually pointless for them to sue). This debt will also be on your credit reports, and its very bad for your rating. My advice would be to never voluntary repo a car. If it's an involuntary repo, there's a better chance of catching them not following the technicalities of the process and get some relief of the ensuing deficiency debt. Find out how much they want to pay off the loan. If there's a chance of selling the car for that or more, by all means do it. (If you let the finance company sell the car in a repo situation, they will not get as much money as you could. That's because they'll sell it quick at an auction.) Once you have a buyer, they pay off the finance company and get the title. Or the company might allow you to arrange someone to take the car and assume (take over) the loan. In that case they would rewrite the contract in the new person's name and you would be relieved of having to make any more payments. The finance company would need to qualify the buyer based on income and credit just as if they were getting a new loan.

It doesn't work that way. If you don't make the payments, the finance company has the option of repossessing the car. You may help them by arranging for them to come get the car, or they may sneak up and take it. The results to the consumer are exactly the same in either case. It goes on your credit report as "repo", of which there is no distinction whether it was voluntary or not. Repos will majorly lower your credit rating, to "ruined" status. Also the finance company will always claim that they sold the car for a very small amount (which may actually be the truth in the case of a problematic Kia, redundant as that is), thus you still owe nearly the full amount. They will have debt collectors call you constantly, and they may sue you for it (though with someone on disability, it's usually pointless for them to sue). This debt will also be on your credit reports, and its very bad for your rating. My advice would be to never voluntary repo a car. If it's an involuntary repo, there's a better chance of catching them not following the technicalities of the process and get some relief of the ensuing deficiency debt. Find out how much they want to pay off the loan. If there's a chance of selling the car for that or more, by all means do it. (If you let the finance company sell the car in a repo situation, they will not get as much money as you could. That's because they'll sell it quick at an auction.) Once you have a buyer, they pay off the finance company and get the title. Or the company might allow you to arrange someone to take the car and assume (take over) the loan. In that case they would rewrite the contract in the new person's name and you would be relieved of having to make any more payments. The finance company would need to qualify the buyer based on income and credit just as if they were getting a new loan.

It doesn't work that way. If you don't make the payments, the finance company has the option of repossessing the car. You may help them by arranging for them to come get the car, or they may sneak up and take it. The results to the consumer are exactly the same in either case. It goes on your credit report as "repo", of which there is no distinction whether it was voluntary or not. Repos will majorly lower your credit rating, to "ruined" status. Also the finance company will always claim that they sold the car for a very small amount (which may actually be the truth in the case of a problematic Kia, redundant as that is), thus you still owe nearly the full amount. They will have debt collectors call you constantly, and they may sue you for it (though with someone on disability, it's usually pointless for them to sue). This debt will also be on your credit reports, and its very bad for your rating. My advice would be to never voluntary repo a car. If it's an involuntary repo, there's a better chance of catching them not following the technicalities of the process and get some relief of the ensuing deficiency debt. Find out how much they want to pay off the loan. If there's a chance of selling the car for that or more, by all means do it. (If you let the finance company sell the car in a repo situation, they will not get as much money as you could. That's because they'll sell it quick at an auction.) Once you have a buyer, they pay off the finance company and get the title. Or the company might allow you to arrange someone to take the car and assume (take over) the loan. In that case they would rewrite the contract in the new person's name and you would be relieved of having to make any more payments. The finance company would need to qualify the buyer based on income and credit just as if they were getting a new loan.

It doesn't work that way. If you don't make the payments, the finance company has the option of repossessing the car. You may help them by arranging for them to come get the car, or they may sneak up and take it. The results to the consumer are exactly the same in either case. It goes on your credit report as "repo", of which there is no distinction whether it was voluntary or not. Repos will majorly lower your credit rating, to "ruined" status. Also the finance company will always claim that they sold the car for a very small amount (which may actually be the truth in the case of a problematic Kia, redundant as that is), thus you still owe nearly the full amount. They will have debt collectors call you constantly, and they may sue you for it (though with someone on disability, it's usually pointless for them to sue). This debt will also be on your credit reports, and its very bad for your rating. My advice would be to never voluntary repo a car. If it's an involuntary repo, there's a better chance of catching them not following the technicalities of the process and get some relief of the ensuing deficiency debt. Find out how much they want to pay off the loan. If there's a chance of selling the car for that or more, by all means do it. (If you let the finance company sell the car in a repo situation, they will not get as much money as you could. That's because they'll sell it quick at an auction.) Once you have a buyer, they pay off the finance company and get the title. Or the company might allow you to arrange someone to take the car and assume (take over) the loan. In that case they would rewrite the contract in the new person's name and you would be relieved of having to make any more payments. The finance company would need to qualify the buyer based on income and credit just as if they were getting a new loan.

If you can't pay, you can't. But in reality, see if your disability insurance will pay it, some do, or sell it out right to some who will take over the payments. You have a lein on it, so it has to be paid off before they get the title. Either way, drive it with a for sale sign that says take over loan on it. Hope that helps