Legal Challenges With Loan Defaults and Auto Financing Reposessions

Failing to make your auto payments or defaulting in on your loan can result in your auto being possibly repossessed by your lender. If you want to learn about how auto repossession works, and better yet how to avoid becoming part of that statistic, and what options you might have should your auto become repossessed, then read on.

If you ever wondered why the lender is allowed to repo your car, that is directly related to the financing you received on your auto. Anytime you decide to finance, you are giving the lender a secured interest in the auto in question. While every states auto repossession laws differ, the lender in general has a secured and vested interest in the auto, meaning the lender can repossess the car at any time and without notice should you default on the loan. There is a variety of things that can cause you to default on the loan, for example you could be on time and never have missed a car payment, yet still default on your auto loan. How can you default on your loan if you have never missed a payment? If you have lapsed on car insurance you can then be in default on your loan as loans require the car be insured. Lenders can and do repossess cars where the owner has let the insurance lapse.

In general your lender can send a repo mean or repo team to take the vehicle at any time you are in default. They can even take your vehicle from a your wok place, and retrieve the auto from your property. They can do this without any prior notice or warning, in fact most lenders will give no forewarning of a pending repossession, as this can make the repossession process harder for the lender, if the debtor decides to make things difficult. Repo men cannot break the peace while repossessing your auto, which in general means they cannot create for example enter your closed garage, nor use threats or violence to repo the auto. If a lender breaches the peace at any point in the repossession process, you could be entitled to damages, and you may use it as a defense in any deficiency lawsuit the lender might bring.

After your auto has been repossessed your lender has two main options. The first and most unlikely is that they can keep the vehicle. The second and most common option is that the lender will sell the auto to recoup on their losses. They can sell the auto for far less than what is owed, then sue you via a deficiency lawsuit for the remainder. Your lender however in most states must inform you of when and where this sale is to take place, if you ask. Your lender must also follow legal and standard sales practices, failure on your lenders part to do this can result in a defense against any deficiency suit against you, if the sale was not performed in a generally commercially reasonable manner.

Your lender does not have to simply rely on and hope repossession and the resale of your repossessed car to pay off the loan balance. Any remaining balance on the loan after a repossession and resale of the auto can result in a deficiency balance. Your lender can sue you for the deficiency balance in most states. There are a few defenses for a deficiency suit, including if the lender repossessed your car while breaching the peace, did not sell your car in a commercially feasible way or if the lender waited to long to sue and the statue of limitations has passed. The statue of limitations for a deficiency suit will vary by state.

You do have a few options to try and get your auto back:

Redeem the car
This is where you pay the full balance of the loan back plus repo cars. Very few people ever manage to pull this off, since they had financial problems to begin with that led to the repossession in the first place.


Buy it at auction

If the lender auctions it, you can bid and potentially win your auto back. You are still liable however legally for any deficiency, and a deficiency suit can still be brought.


Reinstate the Loan

This is an option available in a limited number of states. To pull this off you must pay back every payment you are in arrears for, and the cost of repossession. Once this is done you can have the loan reinstated. Of course you will have to keep up with future loan payments, or this process could well happen again.

Bankruptcy
You must file before the auto is sold, then a stay of sale is placed, which may give you time to obtain the funds needed to buy back your auto. The lender however can obtain court permission to sell it anyway. Much will depend on what chapter you file, some chapters can address the amount you are in arrears for, and some chapters like 13 can restructure the debt.

How We Get Into Debt and Tips For Getting Out of Financial Mistakes

Everyone has debt of some form or another, from student loans, credit cards debts to mortgages, even lines of credit. Americans in 2012 owed more than $8.5 trillion in mortgage debt alone, and nearly $1 trillion in student loan debt, and over $789 billion in credit card debt. All of this debt added together equals an average U.S household median debt of a staggering $200,000 per household! We all fall into debt at some points in our life, but we owe it to ourselves to find out why we are in debt, pay that debt off and escape the cycle of debt.

The good news is that our debt load has actually decreased! yes since the 2007 recession our average debt load is lighter than pre-recession times. This is largely due to more Americans saving money and spending less in these turbulent financial times. Yet recent studies have shown that Americans are taking out very hefty loans these days, resulting in heavy debt loads.

The debt load faced by Americans today is causing many of these debtors to fall into default on their debts. Nearly one in every 10 people repaying a student loan has fallen into default on their student loans. Foreclosures have risen by 23% according to recent foreclosure data, this despite all the government anti-foreclosure programs available today.

Debt just does not hurt our finances, it also harms our relationships. Most divorces can be traced to finances and debt. Many friendships and family fallout’s are also the result of debt and finances, including failure to honor the repayment of credit cards and loans where a family member or friend was the co-signer. A whopping 27 percent of people in mental health care can trace some of their symptoms to financial debt, and of these people 24 percent can trace financial anxiety to an adverse effect on their health.

If you too find yourself weighed down by debt, and all of it’s negative effects, read on for ways to reduce this debt. Knowing how we got into debt in the first place is critical here. Did you know that when we use credit versus spending cash that our brains process this differently? When we use credit our brain does not fully process the ramifications, consequences and effects of using credit. For example people at an auction are willing to pay twice as much with credit than when using cash. If you cannot see the money, it is far easier to spend it. We as human beings are also very optimistic, replacing reality with hopes and dreams, we think we can repay the dent easily, when in fact this debt we willingly take on often crushes us with its weight.

You should start correcting this by making up a budget, and sticking with it. Budgets do not need to be hard, where many people screw up on a budget is not allotting any money to indulgences and spending money. If you do not get to aggressive with your budget, and leave a little breathing room it will work. They key during this time is to live to the budget and not to take on any unnecessary debt or loans. If your car breaks down or is totaled, obviously you may need a car loan during this time, but you do not NEED a loan to take a fancy vacation. You also should get debt repayment goals and celebrate moderately when these goals are met. When you have paid down one debt to a zero dollar balance, treat yourself to a night out or some other small treat.

Also be on the look out for any way to increase your income, either on a permanent basis or a temporary basis. Believe me you will remember taking a second job in order to repay your debts every time you consider taking out any form of credit in the future. Repaying back a massive debt load is never easy, nor pleasant, nor is it intended to be. If you stick to your budget, commit to a repayment plan, and remember how you ended up in debt in the first place, you will find yourself out of debt in time, and you will find yourself saving more and spending less.

Changes To Student Loans and Financing Should Be Beneficial

The biggest change for student loans in years is President Obama’s Student Aid Bill of Rights. This is an exciting bill that changes student loans in many key areas. President will be signing a new Presidential Memorandum which will direct the Department of Education as well as other key federal agencies to do more to help borrowers afford their monthly loan payments. It is also setting up a complaint system to help keep tabs on any issues with the Department of Education, its contractors, and colleges. These complaints will actually be looked into and where needed the Federal government will intercede. It also aims to help students set up affordable payments for their student loans, and indeed already cap their student loan payments at 10 percent of income. The bill also aims to do extensive yearly studies of student debt load so that the government may make legislative and regulatory changes where and when needed.

The bill also includes the following, which is take directly from the White House website:

A Student Aid Bill of Rights

I. Every student deserves access to a quality, affordable education at a college that’s cutting costs and increasing learning.

II. Every student should be able to access the resources needed to pay for college.

III. Every borrower has the right to an affordable repayment plan.

IV. Every borrower has the right to quality customer service, reliable information, and fair treatment, even if they struggle to repay their loans.

The bill aims to better assist students in tackling their student debt load in a era where more than 70% of those who earn just a bachelor’s degree end up with an average debt load of $28,400 at public and non-profit colleges. The bill also aims to improve student loan servicing.

The complaint system will be via a new website founded by the Secretary of Education by a date no later than July 1, 2016. The goal of the website is to give students a central location to provide feedback and log complaints against federally back student loan lenders, servicers, collections agencies, and institutions of higher education. They also plan to take action on misleading claims which are running rampant in today’s college world.

The big thing being done with this act is to help borrowers afford their monthly payments. Many of the loan processes are now changing such as when federal student loans are transferred from one servicer to another or when when borrowers begin but do not complete applications to change repayment plans. The bill also ensures that lenders apply prepayments towards any loans with the highest interest rate first unless directed otherwise from the student in question. Also a central location for repayment online is being made that covers ALL service providers for federal student loans, which will allow for access to account information and repayment options all in one standard location for any Federal student loan servicing contractors.

If you are going for a student loan or are in the process of repaying a student loan you should get familiar with all the new rights that have been accorded to you. I fully expect the year 2016 to herald even more changes with the Federally funded student loan programs across the country as the president has made it an ongoing part of his agenda.

Jump Starting Smart Tax Planning For 2015

Most Americans who file taxes go for the standard tax deductions which are based on your age, income and filing status. The actual deduction often changes from year to year. For 2014 the average tax return was $6200 for singles and married people who opted to file separately, and up to $12,400 for married people filing jointly. Yet some people choose to itemize or for whatever reasons are not eligible for the typical standard deductions. If you fall into this category you need to maximize every single advantage you have because every deduction matters when it comes to getting the best tax return possible.

If you itemize and reside in a state that has no income tax, namely Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming, then you can deduct your state tax. If you live in any other state you too have options, you can deduct either your state and local sales taxes, or you can opt to deduct your state and local income taxes. When choosing between the two you should of course choose whichever is greater. if you purchased some big goods such a new car, a wedding ring and engagement ring as well as say some home improvements the sales tax deduction could amount to be a significant amount of money saved. If you have any doubts as to what you would save by claiming your sales tax you can always make use of the IRS sales tax deduction at http://www.irs.gov/Individuals/Sales-Tax-Deduction-Calculator

Claiming dependents is an old deduction but there have been some significant changes to how dependents are classified. Of course children up to age 19 who are not in school may be claimed as well as children up to age 24 who are still in school. If your child is disabled you can claim them at any age, even 40 if they live with you still. Now you can also claim your parents if you are supporting them as well. This is often the case for those who live in the so called sandwich generation. You have to be providing your parents 50% or more of their financial needs to qualify for this deduction. If you do qualify for this deduction you might even be able to claim your parents medical care costs along with your own when you itemize. Did you know that the IRS allows dependent status and deductions for over 30 different types of relatives? Have a sister living with you who is handicapped? This too might be a deduction. These deductions can be either $1000 per person or $350 plus the dependents earned income, whichever is greater. If you are confused you can always check out Turbo Taxes cheat sheet at https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html

If you are itemizing then you should really pay attention to medical care deductions.
These are often times the most overlooked of all deductions. Did you know if you make a home improvement for medical reasons such as handicap access that this is a tax deduction? You can even write off the mileage back and forth to medical appointments for yourself, your children and any dependents you transport. Medical care providers do not report to the IRS what you paid in medical expenses so you should keep track of these expenses throughout the year and itemize these at tax time. Most medical expenses qualify for these deductions even hearing aide batteries, bandages, eye glasses, home health care expenses and more. Even home renovations that need to be made per a doctors order count. The cost to train a companion animal also qualifies.

While taking the standard deductions is no doubt the easiest method to do your taxes you could be missing out on big tax returns by not itemizing your tax deductions. For those who qualify and take the time to do so you could very well maximize your tax return. You should of course consult a qualified CPA to discuss weather or not this option is the best for you.

The editorial team from http://cashloansonlinelender.com is dedicated to helping consumers find great deals and savings on all of their finances, debts and lending needs.

Are Personal Lines Of Credit Good Lending Alternatives To Loan

Personal lines of credit can be the difference between a rock and a hard place financially. They can infuse cash quickly when you need a quick infusion of cash such as when you have an unexpected expense such as a broken motor or a burst pipe in your house. For those who are in seasonal employment, sales jobs or other income volatile professions, personal lines of credit also come in handy to keep cash flowing in during lean times. While a savings account would be a far better cash cushion at least this is an option for those who need it.

Personal lines of credit for those who do not know are much like a loan, but more flexible. Personal lines of credit are usually granted by a bank or a credit union. Borrowers tend to make use of them when they want to leave their savings accounts in tact, or when they have none. They also have less interest than credit cards and many other loan products on the market which makes them an attractive loan product. Like a credit card, personal lines of credit have a limit to, but these limits tend to be much higher than that of a credit card. Merely have a line of credit does not put you into debt, in fact you can have an open line of credit your entire life and never owe on it, as long as you do not use it. It is only when you draw on your line of credit that you owe any money. There are monthly minimum payments just like a credit card, but again at a lower interest rate than a credit card. Personal lines of credit are often secured with your home as collateral, but there are plenty of lines of credit based just off of your signature. Personal lines of credit which are secured with the equity of your home are known as HELOCs or home equity lines of credit. The only difference between a HELOC and a personal line of credit is that HELOCs are always secured with your home as collateral while personal lines of credit tend to be signature only.

Personal lines of credit however do not automatically come with a plastic card to use at merchants or withdraw from. However there are some personal lines of credit that do offer plastic or that can be tied to your bank account for ease of use. Some personal lines of credit when attached to a bank account or issued a plastic card can be used just like a debit card.

Personal lines of credit tend to charge less interest than credit cards making them an ideal go to source for spending when you do not have the funds available that day to spend. Although this is not always the case, there are exceptions to this rule such as those with credit cards on an introductory rate or those with a maxed out credit score of 850. Because they do not automatically come linked to a plastic card (as you have to request this or look for a personal line of credit which offers it.) they provide less temptations to use on impulse spending, making this the perfect credit source for those who have trouble with impulse spending. Personal lines of credit often are processed fast meaning you can often make use of your personal line of credit within weeks or even days of applying, with the exception of HELOCs which can take a few months depending on the lender. Unless your line of credit is a HELOC your personal line of credit will be unsecured meaning your assets are likely safe should you run into problems and default on payment. Personal lines of credit are also very flexible in that you can borrow only what you need and once paid back you can borrow from it again without an application, making this an ideal form of credit in place of a loan.

Understanding How Credit Inquiries Can Impact Your Scores

One of the least understood aspects of credit scores and credit reports are inquiries. How do they affect your credit score? What exactly are inquires? When do they fall off your credit report? Do they affect your credit score the entire time they reside on your credit report? What about multiple auto loan inquiries within say a 2 week period? Inquiries remain one part of credit scoring that everyday people still just do not seem to understand, so lets break it down shall we?

A credit inquiry is a flag that appears on your credit report each time your credit report is pulled by someone with a permissible purpose. This includes lenders that you have applied for credit with and any collection agencies that have a past due account that you owe on. Credit inquiries will remain visible on your credit report for a period of two years. There are two types of inquires as well, hard and soft. Hard inquiries are the ones from lenders and collection agencies, while soft inquiries are the ones caused when you pull your own credit score or when a potential creditor pre-screens applicants. Only hard inquires can damage your credit score and only hard inquiries from the last year will effect your credit score.

Hard inquires appear the instant a lender pulls your credit report and scores it using any of the various credit scoring methods such as the FICO8 scoring model or the Vantage 3.0 credit scoring model. In the early years of credit reporting it took some time for inquiries to appear but now they appear instantly so that other creditors know you are applying for credit elsewhere. Collection agencies often pull your credit report as well to check on the state of your finances as well as to skip trace debtors trying to avoid being contacted by the collection agencies.

When you see a soft inquiry it is when you pulled you own credit report. They can also appear from lenders who have screened you with a pre-approved credit offer. They can also appear when a creditor you already do business with wants to check on your credit progress. Insurance checks and pre employment checks also appear as soft inquiries. Soft inquiries are not only ignored for calculating your credit score, they also do not even appear visible to creditors.

You can use inquiries to easily spot identity theft if you monitor your credit regularly. Any inquiries appearing from creditors you do not recognize is often a sure fire sign that your identity has not only been stolen but that the thief is now applying for credit in your name.

Under most scoring models each hard inquiry will deduct 5 points from your credit score. This damage fades away over time and in one year your score goes back to normal. Inquires can be grouped together within a 14 day or 45 day period for rate shopping purposes so that only one of the inquiries counts against your credit score, the amount of days 14 vs 45 depends on which credit scoring model the lender is utilizing at the present time.

Does being turned down for credit hurt your credit score?

We received an email from Stephanie today asking about how to rebuild her credit after a bankruptcy filing. In her question, she mentioned a common credit rumor

I do not have any credit cards and I am afraid to apply for one because I think I will be turned down due to my bankruptcy. I was told that being turned down for credit lowers your credit score so I won’t apply.

This is a fairly prevalent credit myth. The truth: being turned down for credit does not impact your credit score at all. In fact, application approval and rejection information it isn’t even reported to the credit bureaus – Equifax, Experian and TransUnion.

When you apply for a new account, an inquiry record will appear on the credit report that was used in the review. An inquiry is simply an item on your credit report that shows that someone with a “permissible purpose” under FCRA regulations requested a copy of your credit report. (Click here for a sample of an inquiry records on an Equifax credit report.)

Inquiries can cause a small ding in your credit score, but this occurs whether or not you are accepted for the account. If you apply for new accounts excessively, you may see a more noticeable decrease in your credit scores.
Do you have a credit question? Have you heard a good credit rumor lately? Share your feedback and questions in the comments section below.

We are constantly searching for how to, advice and money saving tips and articles for consumers. Our mission is to make the online lending industry super easy to navigate and provide you with the best options for short term loans
, credit cards, peer to peer loan offers and emergency cash when you have limited options to assist you in making an informed and financially sound decision.

Guarding Against Identity Theft Offline Is Still Important

Mailboxes are a potential goldmine for identity thieves. Incoming mail includes items such as credit card offers, tax statements, catalog order forms, checkbooks and account statements that can all be used by an identity thief. Outgoing mail can include checks, bill, credit card applications and credit card numbers that are also valuable to thieves.

Here are six steps to help you guard against “mailboxing” crimes:

• Opt-out of pre-approved offers – Remove your name from the credit bureau marketing lists for pre-approved credit card and loan offers. Either call 1-888-5-OPT-OUT or go online to www.optoutprescreen.com to complete this simple request. You will be amazed at how opting-out can reduce your mail volume each day.

• Request online statements – Many banks, creditors, lenders and investment companies now allow you to request that all your statements are delivered by email instead of by mail. Not only does this cut down on mailbox clutter, it also helps you prevent identity theft.

• Drop off outgoing mail in a secure location – Putting outgoing mail in an unlocked mailbox and marking it with a red flag is practically asking for identity theft. Instead, place outgoing mail in a blue postal collection box or take it directly to the post office.

• Request mail holds – If you are leaving town, even just for a few days, request a free mail hold from the US Postal Service. Their online mail hold request form can be filled out the same day for holds from 3 to 30 days. At the end of your trip you can either have the mail delivered all at once or left at the post office for you to pick up.

• Install a locking mailbox – If you can, replace your current mailbox with a locking mailbox. Some mailboxes offer extreme security, but even a less secure mailbox will act as a good crime deterrent.

• Watch for suspicious signs – Disappearing bills, missing mail, letters announcing new accounts in your name, unauthorized checks and credit report changes can all be signs that you have been a victim of mailboxing.

The editorial team from PaydayLoansOnlineLender.com is committed to bringing you the best financial articles and money saving tips in 2015! Click here to read more about identity theft from other sources and additional articles on fraud. A few small steps can help you guard against the most damaging and prevalent types of identity theft. Along with preventing mailboxing, you should always remember to shred sensitive documents and check your credit reports every 3-6 months.

What Are The Financial Ramifications For Bouncing A Check

Have you bounced a check? A debt collector can bring a criminal action against you

The Senate Banking Committee is considering a bill that could have a negative impact on consumers. This consumer un-friendly legislation should have you arming yourself with your pens (and key-boards) to protest the proposed revisions to the Fair Debt Collection Practices Act (‘FDCPA‘).

The Senate Banking Committee’s version of H.R. 3505 amends the Act to excuse some bad check enforcement programs currently under state regulatory oversight from federal regulatory oversight. Here is how it works –- Some state and local prosecutors use companies called “check-diversion” companies to help them collect on and reduce the number of bounced checks. If someone bounces a check they are sent a letter, often on the official letter-head of the prosecutor, telling them they must attend a check-restitution program, a fancy name for financial responsibility counseling program, operated by prosecutors in their local areas. They are also told they owe fees several times the amount of the bounced check, and if they don’t comply with the instructions they will be prosecuted. Prosecuted — For making a mistake?

No, we don’t think that people who write bad checks shouldn’t have to pay. But we also don’t agree that criminal prosecution is appropriate in most cases. This amendment as written, allows check-diversion companies to operate outside the Act because check-diversion companies and their activities will not fall under the statutory definition of ‘debt collection.’ Because of this exemption, check-diversion companies will be allowed, to use the punitive power of the local prosecutor’s office to:

• Force consumers to pay for checks that they may not even owe;
• Force consumers to pay exorbitant fees that are not authorized under state law;
• Subject consumers to threats of criminal prosecution for not paying for the checks.
Since check-diversion company activities are not considered to be ‘debt collection
‘ consumers will lose the rights granted in the FDCPA, for dealing with debt-collectors such as:
• The right to request copies of the checks;
• The right to dispute incorrect information prior to being subjected to the harassment of the check-diversion companies;
• The right to avail themselves of the protections against unfair, abusive or deceptive collection practices now prohibited by the Act.

This provision places no practical limits on the activities of check-diversion companies, which have a track record of abusing consumer rights throughout the country. Nationwide consumer organizations and the Federal Trade Commission oppose this unjustifiable exemption of check-diversion companies, and we do too. If they walk like a duck, and quack like a duck . . . well you know the rest – they must be debt collectors. Write to the Senate

Banking Committee, or send them an e-mail letting them what you think.

Want to share your story of dealing with aggressive check-diversion companies? Post your feedback in the comments section below. The editorial team from paydayloansonlinelender is committed to helping consumers save money and find good deals with credit and lending offers in 2015!

Refinancing Your Car A Potential Money Saving Strategy In 2015

Interest rates have been low for awhile now. You might have thought about your auto payment and wished you could reduce it, well right now might be a good time to go for a auto refinance. An auto refinance could save you thousands of dollars over the duration of your loan, a few hundred dollars per year. An auto refinance is not for everyone but if you are currently paying 6 percent or higher you may want to consider an auto refinance.

Now you may be think of how difficult it may be, as everyone knows refinancing your mortgage can be a pain staking process, or a headache like consolidating ones credit card balances. Unlike both refinancing your mortgage or consolidating your credit card debt applying for and obtaining a auto refinance is actually a relatively fast and painless process. You do not even need to have your auto appraised. There are usually not any fees and when they are they are low cost fees.

When should you consider refinancing your auto? If you fall into any of these situations below you should consider an auto refinance and if you are paying to much right now.

You didn’t get your best rate:
Perhaps when you applied for you car loan you had a good credit score. Your debt to income ratio might have even been spot on but for some reason you ended up with a poor rate. Usually this is due to going for a dealer ship based loan as these loans tend to carry a higher rate. Many consumers fall into this trap due to not knowing any better. The dealers do this to make extra money much the same way they usually make money by selling you an extended warranty.

Interest rates are lower:
If the market interest rates have dropped more than 1 or 2 points since you applied for your original loan you could save a lot of money with an auto refinance. Refinance rates are in the used car loan bracket and are higher than new car loans. Even a single percentage point can be a huge savings for you over the life time of your loan.


Credit score has improved:

When you applied for your original loan if your credit was in a different bracket, for example if you were a sub prime borrower but your new credit score places you as a prime borrower now is the time to re refi. Perhaps you had no credit or a few old delinquent accounts which have now fallen off of your credit report since you bought your car. Did you know that interest rates of 18 to 20 percent are common for those with whats called thin credit? Thin credit is when you have very little information and accounts on your credit report. Even a credit score jump of 30 points could mean saving hundreds of dollars per year via a refinance.

Your personal financial situation has changed for the worst:
Perhaps you have an upsurge in bills and expenses, or lost a secondary source of income. At any rate if you need to cut back on expenses a refinance could make all the difference. The money saved by a lower payment could be just the lifeline you need to stay afloat and it will not cost you money to find out if you qualify for a lower rate.

Searching for online loan offers in 2015, check out cashloansonlinelender.com for the best options for consumer based loans from the convenience of your home or office.