What to Do If Your Car Is Repossessed Due to Loan Default?
1 Answers
Loan companies do not have the right to repossess a car, even if the auto loan is overdue. They can sue you in court, but repossessing the vehicle is not a lawful action. First, consider filing a police report to seek mediation by the authorities. Second, initiate a civil lawsuit in the court where the loan company is located, demanding the return of the vehicle. As for towing fees and additional loan charges, if they are not stipulated in the contract, you are not obligated to pay them. Moreover, you can claim compensation for personal losses incurred during the period the vehicle was repossessed. An auto loan refers to the credit extended by lenders to borrowers for purchasing cars. Auto consumer loans are a new form of secured RMB loans provided by banks to buyers purchasing vehicles from their authorized dealers. The auto loan interest rate is the ratio of the loan amount issued by the bank to the consumer (or borrower) for purchasing a personal-use vehicle (non-commercial passenger cars or 7-seater and below business vehicles) to the principal. The higher the interest rate, the larger the repayment amount for the consumer. If the default reaches a severe level, it may constitute malicious overdraft, which could be adjudicated as credit card fraud. Sentencing standards will be based on the amount of the malicious overdraft, ranging from less than 5 years, 5 to 10 years, or more than 10 years of imprisonment to life imprisonment, along with fines or confiscation of property.