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I have a friend who took out a 00 car loan August 2009. He paid on it for a couple of months until the balance he owed was around 50. They he suddenly stopped paying on it. He made his last payment February of LAST year (so it’s been about 13 months without paying). He stopped driving the car several months ago when the registration and insurance expired but he still has the car parked in his driveway and doesn’t want to return it to the bank (I have no idea why). I’m surprised the bank hasn’t tried to repo the car and was wondering if anyone knows why they haven’t? It’s Mountain America Credit Union if that makes a difference. Everyone else I’ve ever talked to has always told me that banks tend to repo a car after just a couple of months without making a payment, especially if you are not keeping in contact and trying to work payments out with them. He cut off all contact with the bank as well 13 months ago and never responded to their phone calls, e-mails and letters.

3 Comments »

1. 

   The bank is not interested in a car that costs $2,500 and is probably worth less. Doing a repo on a car like this would be more trouble than it’s worth to them. They just wrote off the loan as a loss.
   You’re friend is what is called a "skip." by the collection agency as he’s cut off all contact. Debt collectors have ways of finding people and they can always try to collect at a later day.
   This loan will be listed as a status R9 Charge Off on his credit report and this will haunt him for 7 years.
   - The statute of limitations on car loans can be quite long depending on what state he lives in, meaning that they could wait 5 or so years and come after him for $6K in fees and interest…
   He needs to offer to settle this account in full….starting at $500. See if they’d take a settlement. Get all terms of any settling in writing BEFORE you pay. Once you get this, it’s safe to pay.

   Comment by CatDad — March 12, 2011 @ 1:50 am

2. 

   Agree, what they will get out of that car isn’t worth it. It will go to auction and get them a few hundred bucks or something. They can still take him to court and attempt to garnish his wages and things so it’s in his best interest to handle his business. If he can sell the car for a grand or something perhaps he can settle the debt and be done.

   Comment by bloomorningglory — March 12, 2011 @ 1:50 am

3. 

   Any bank does not take care of a car which isn’t worth it. so that does not matter at all.

   Comment by k somnadh — March 12, 2011 @ 1:50 am

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