Automatic bank withdrawals (EFT) for car payment

[SocalBroke]

Hi all,

Don't know why I hadn't thought about this before but hopefully someone will know the answer. I have a car loan through eloan. It's not a bad rate, it's not a great rate but I'm ok with it. I really like my car and considering it's a 2001 Saturn, I am probably the only person who does

Anyways, I have already filed, and listed that I want to reaffirm this loan. The loan company usually does an automatic withdrawal from my checking account on the 15th of each month (with my blessing). Since I filed bankruptcy, are they still going to be able to withdraw the payment or does the automatic stay prevent it? I'm really hoping they can still do it but it doesn't seem like they should be able to....If they can't, is it possible for me to reauthorize the monthly debit?

Thanks!

[FakeName]

My lawyer advised me that they MIGHT stop pulling from your account to comply with the automatic stay. He said, of course, this doesn't mean they don't expect to be paid! He advised me to stay on top of those things and make sure they get their money even if it means I had to manually make the payment.

[AngelinaCat]

We reaffirmed our automobile with our CU, and except for a couple of weeks of procedural maneuvering and all, we reestablished our automatic payment with very little trouble.

I should add that in order to stay with our CU, which we wanted to do, we HAD to reaffirm the loan or we would have been kicked out. Also, we wanted to keep the car. We finished the payments this past February.

[mike258]

I filed yesterday (6/9/09) and have an automatic payment scheduled for Friday (6/12/09). I will let you know if they take it or not.

My loan is with Capital One, I have 13 payments left.

[SocalBroke]

Thanks all! My first thought is to call them and ask them directly. Since I am planning on reaffirming and not trying to lower the rate or anything, I can't see any harm in doing that, but just concerned about speaking with them directly. Guess this will be a good thing to ask my atty about

[SocalBroke]

Huh?

Ok, tried calling the loan company (with my attys blessing). Turns out the automatic debit has been canceled because of the automatic stay. The weird part is....they refuse to reaffirm. The girl was not very clear but she made it sound like she was afraid they would re-affirm and the trustee would seize the car and sell it to pay off other creditors....umm, EXCUSE ME... this is a 2001 Saturn with 80,000 miles on it. People aren't exactly lining up around the block to buy it...

She did say I could continue to mail in payments (but my interest rate went up 1/2 a percent because I was dropped from EFT) and I wouldn't have to worry about a repo.

Honestly, to me, it sounded like she was telling me I had to do a 'ride through" but she said she wasn't familiar with that term. Does anyone see an issue with this other then the higher percentage interest (which works out to a whopping 2.35 a month)

[AngelinaCat]

That girl is not at all familiar with her job. I would try contacting them again and ask to speak to a manager. If she is the manager, then you need to speak to her supervisor. Or have the attorney do it.

[LuciluS]

No, I don't see a problem IF you want to pay the monthly payments. But, I would call back & ask for the Bankruptcy Dept. (you may have to be persistent getting thru to that dept.) as usually the address is different than the address to just mail a payment to.

I don't see why you cannot pay the payment during the automatic stay period through your checking account, if you use bill pay, instead of mailing it. Sorry, I just don't trust a 'check for a monthly payment' being mailed during Bankruptcy unless it is sent requiring a signature which is expensive. Not blaming the US Post Office nor ELoans....just there are too many IFs when sending regular mail.

We are filing in 9/09 & are/going to stay current on our Mortgage payment & DH's truck throughout the Bankruptcy & will Definitly reaffirm the house as our Area of AR was not hit by plunging prices of homes. Also, we could possibly have equity in our home IF our mortgage company will allow a Reaffirmation. We will reaffirm the Truck Payment, also.

I plan on calling & asking for the Bankruptcy Dept. of each, giving none of my information, and requesting the mailing address. As I pay all my bills online, I will change the address through the automatic stay period & put it back when I can.

DH has a ParentPlus loan which is auto-drafted & he receives % points off for EFT. Guess he will need to call about that one as I'm not on the loan.

Luci

[AngelinaCat]

Luci's post just jogged my memory. When we were dealing with our CU and the reaffirmation of the car, 'Hub actually DID talk to someone in the CU's Bankruptcy Department. There were about two or three telephone conversations as I recall, and each time he spoke to a specific person.

I hope that helps. I'll ask him to chime in later with his recollections.

[SocalBroke]

No, I don't see a problem IF you want to pay the monthly payments. But, I would call back & ask for the Bankruptcy Dept. (you may have to be persistent getting thru to that dept.) as usually the address is different than the address to just mail a payment to.
Luci

Hi,

The girl I spoke with was supposedly in the bankrupt department as I asked her the minute I got transferred. I could try asking for a manager but not sure I should bother since I can set up Wells Fargo <ducking the flying tomatoes> to automatically do a monthly bill pay

[TeacherMomma]

we called after we filed and asked what the procedures would be, were sent to the BK department where we spoke with a BK specialist for the CU, and she sent out the reaffirm to us (we are pro se) and said when it is back, we have our hearing, and it is reaffirmed, we could resume EFT, but until then, no EFT.

[LuciluS]

Hi,

The girl I spoke with was supposedly in the bankrupt department as I asked her the minute I got transferred. I could try asking for a manager but not sure I should bother since I can set up Wells Fargo <ducking the flying tomatoes> to automatically do a monthly bill pay

Not me throwing tomatoes Now just call & ask for the address of the Bankruptcy Dept. as I know it will be different than a (pardon this phrase,but tired) normal payment address k? Because you don't want to make a payment using say a coupon book or statement address & it 'kick back' & you get a late charge.

Luci

[LuciluS]

we called after we filed and asked what the procedures would be, were sent to the BK department where we spoke with a BK specialist for the CU, and she sent out the reaffirm to us (we are pro se) and said when it is back, we have our hearing, and it is reaffirmed, we could resume EFT, but until then, no EFT.

Yes, sometimes they will allow a 'normal resume' of an EFT. However, you intend to make a payment each month through 'Bill Pay' through your checking acct, right?



Luci

[TeacherMomma]

We were told we could call them and do it over the phone each month from the checking account, so yes

[LuciluS]

We were told we could call them and do it over the phone each month from the checking account, so yes

Usually there is a fee up to $30 for each transaction conducted over a telephone.

Did you ask about a fee for a telephone transaction? In my opinion, having the Bankruptcy Address and You transacting the payment from Bill Pay should suffice the monthly payment with no fee, if one is charged.

Luci