Auto finance company refusing payment?

[ampln]

Hello all, first post but I have been doing some lurking lately.

I recently filed chapter 7 and my 341 meeting is next week. I am a cosigner on a car for someone else (that is current and never late) and the cosigner intends to keep it and continue payments.

The cosigner tried to make a payment by phone tonight with the finance company (Santander) and they flatly refused to accept his payment, because "the car is in bankruptcy". He is understandably upset and extremely worried now that they will take the car. My attorney had said that they may not allow online payments any longer, but didn't say anything about phone payments.

The payment is due next week, so he could mail it but will they just send it back? I will contact my attorney first thing in the morning, but is this usual? I have found mentions of mortgage payments being returned when they are past due, but nothing about current-never-late car loans?

[ksgirl38]

I just filed at the end of July and mailed my car payment last week and after reading your post I checked my bank account and it looks like they cashed it without any problem. Mailing it in shouldn't be a problem.

[AngelinaCatHub]

Mail it in certified and on time. They are obligated in your common loan agreement to follow their own rules. You have done no wrong and lived up to the agreement. There may be a tracking reason that they don't take payments online or over the phone. Send them the payment on time. I am sure your lawyer will second this. 'Hub

[ampln]

Thanks for the replies, he called back and spoke to someone else who told him to just mail the payments in, said he shouldn't have been told that they would refuse payments. I spoke to the attorney today and he said the same, just mail in the payments. Was sent out yesterday, hopefully all goes well.

[hmsmith]

my car loan wouldn't accept payments online either once filed. They WILL however accept mail in payments....just make sure you send it to the right place as mine had to be sent to the BK dept. ONce we were discharged it allowed me to resume paying online with my old username and password.

[ksgirl38]

my car loan wouldn't accept payments online either once filed. They WILL however accept mail in payments....just make sure you send it to the right place as mine had to be sent to the BK dept. ONce we were discharged it allowed me to resume paying online with my old username and password.

You know I got a letter from Toyota the other day basically threatening reaffirmation, which I was planning on doing anyway, but the address they gave me to send payments was the same as I have been. Did that change for you after the 341 or did you not reaffirm?

[hmsmith]

Honestly I always paid my loan online through toyota financial and never mailed payments in. Once I filed BK then they sent me a letter that said they will no longer accept payments online and for me to mail any payments to an address which they provided on that letter.

KSgirl38 you actually got me curious, so I went thru my BK folder and found my letter for toyota for assuming the lease. It wasn't threatening, but basically said "We would like to extend the offer of a lease assumption to your client. The terms or the original contract or informal agreement will remain as previously agreed upon." Then it goes on to say to notify them in writing.

I did actually reaffirm my lease but only because it ended 3 months after my BK and the payments were very reasonable ($230 a month), plus I had the intention to buy the car after my lease was up since it was also very affordable. Now I am having a hard time getting someone to finance me for the $12k buyout, but I called toyota financial and I think they are going to finance it for me....I actually meet with them tonight!

Do you have affordable payments with your toyota? Is it a lease or purchase? Do you have a long time remaining? We also had a Honda which we did NOT affirm because the payments were just too high and we had over 50 months remaining.

[ksgirl38]

Honestly I always paid my loan online through toyota financial and never mailed payments in. Once I filed BK then they sent me a letter that said they will no longer accept payments online and for me to mail any payments to an address which they provided on that letter.

KSgirl38 you actually got me curious, so I went thru my BK folder and found my letter for toyota for assuming the lease. It wasn't threatening, but basically said "We would like to extend the offer of a lease assumption to your client. The terms or the original contract or informal agreement will remain as previously agreed upon." Then it goes on to say to notify them in writing.

I did actually reaffirm my lease but only because it ended 3 months after my BK and the payments were very reasonable ($230 a month), plus I had the intention to buy the car after my lease was up since it was also very affordable. Now I am having a hard time getting someone to finance me for the $12k buyout, but I called toyota financial and I think they are going to finance it for me....I actually meet with them tonight!

Do you have affordable payments with your toyota? Is it a lease or purchase? Do you have a long time remaining? We also had a Honda which we did NOT affirm because the payments were just too high and we had over 50 months remaining.

Well maybe that's the difference - purchase vs leasing. I didn't lease, I'm buying. I just remembered what you had said and was expecting to have to send payments to a different address, but when I compared the address on the letter to my previous payment notices the address was the same. I guess we'll see if that changes after I sign the reaffirmation agreement next week. My payments are at $267 so not too bad. Unfortunately I've got another 2-3 years of payments.

Good luck at the dealership tonight.

[ace300s]

I recently went through BK7. While going through the process my lender sent me statements which I could make volentary payments. The statement said I was under no obligation to make payments while in the BK process.

My attorney told me to go ahead and continue making the payments if I wanted to keep the car. He told me the lender could take back the car if I stopped making the payments.

About a month after the 341, the lender sent me a reaffirming letter with an offer of $3,000 less than the current amount owed and less than the value of the car. They also offered zero interest for 40 months. I jumped on it and plan to have the car paid for in 12-15 months.

I would call the lender and ask if volentary payments can be made. I would also tell them you're interest in reaffirming the loan if the plan is agreeable. My attorney told me most lender really don't want to take the car back.

Good luck and keep us posted...

[ksgirl38]

I recently went through BK7. While going through the process my lender sent me statements which I could make volentary payments. The statement said I was under no obligation to make payments while in the BK process.

My attorney told me to go ahead and continue making the payments if I wanted to keep the car. He told me the lender could take back the car if I stopped making the payments.

About a month after the 341, the lender sent me a reaffirming letter with an offer of $3,000 less than the current amount owed and less than the value of the car. They also offered zero interest for 40 months. I jumped on it and plan to have the car paid for in 12-15 months.

I would call the lender and ask if volentary payments can be made. I would also tell them you're interest in reaffirming the loan if the plan is agreeable. My attorney told me most lender really don't want to take the car back.

Good luck and keep us posted...

I'm already at 0% interest and they offered the same in the reaffirmation letter. The car is only 2 years old so I doubt they'll take $3000 off of it. I don't recall anything being said about the payments being voluntary, but I really don't think it matters.