Can bank refuse to take your payment?

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Can bank refuse to take your payment?

Have less than $2,000 left on my auto loan. Lost job a few years ago and made every payment until the last 2 month. Now I’ve tried to put most of my payment down this month but they refused to take anything. They told me that I have to pay the other months as well. Can they refuse any money? Also, can they repossess my car at this point as well?

Asked on June 14, 2012 under Bankruptcy Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately the lender (bank) on your car loan can refuse a payment that is a partial amount owed. The reason is that many lenders believe that acceptance of a partial payment may prejudice it with respect to the outstanding loan.

In your situation I suggest that you try and make a payment in full as to the loan that you have on your vehicle even though you have lost your job to pay off the loan so you do not have to worry about your car being repossessed at this stage.


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