Are partial payments enough to keep your car out of repossession?

I have paid every month on my vehicle loan. For the last few months I have been short on my payment but I have never missed a payment. I was told by the lender that if I paid $363 this month I would be all caught up and my car would not be under repossession anymore. Well Ijust spoke with someone at the loan company and now they are saying my car is still in repo. and will not give me access to my on-line account anymore. Can they do this? I’m doing everything they ask.

Asked on November 4, 2011 under Bankruptcy Law, Michigan


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

In order to get an answer to yoiur question, you need to carefully read your loan agreement for your car. If you are not making the minimum monthly payments, then most likely your loan agreement will hold that you are in default. Read the loan agreement carefully for such a provision.

Most likely partial payments that you make are not enough to keep you out of default if the amounts are not the full minimum amounts. I would contact your lender and get the correct amount to bring current your account and when you get that amount, pay it as soon as possible.

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