Can a bank make you pay off a car loan if it is 30 days pass du, but the loan is not yet due?

I have been late before but I have always paid them. The bank came and got my vehicle yesterday. They told me that the only way I could get my vehicle back is to pay the loan off. Can they do that?

Asked on June 7, 2012 under Bankruptcy Law, Indiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not your only recourse to get your car back that you are late or were late on the installmant payment is to pay the entire loan off depends upon what the loan agreement states for the vehicle. As such, you need to carefully read the loan agreement in that it sets forth the obligations owed to you by the lender and vice versa.

If the loan agreement states that your failure to abide by the terms of the loan with payments causes the loan to be due and payble, then you can only get the vehicle back in your possession if you pay off the loan in full.


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