Baton Rouge, LA asked in Consumer Law and Banking for Mississippi

Q: If the bank who I make my car payment to system rejects my payments and I’m not notified for months can they repo my car

The month I bought my car my credit union was bought out. I got welcome packet. It said I needed to do nothing and the transition would be uneventful. I noticed the first two payments were not made so I went into branch, paid them and made sure it would be deducted monthly. I change banks and set up bill pay immediately. I love you every month and saw that payment has been made, I did not notice that their system had rejected my payments and my car payment bank did not notify me until I was months behind. I deferred a few payments and got caught up or so. I thought I sent him half the money and told them I would send them a reimbursement check from the insurance and to apply to payments. They did not apply it to the backend then our trying to repossessed my car. The reason why my payment was rejected. There was no period behind the numbers and it did not state anywhere that it needed to be.. the last seven payments have been made without incident

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1 Lawyer Answer
James L. Arrasmith
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  • Consumer Law Lawyer
  • Sacramento, CA

A: In your situation, the potential for repossession depends on the terms of your loan agreement and the bank's policies. If the bank's system rejected your payments and you were not notified for months, you may have grounds to dispute the repossession.

It's important to communicate with the bank immediately, explaining the situation and any errors that occurred in the payment process. Provide them with evidence of your attempts to make payments and any correspondence related to the payment issues. It's advisable to review the loan agreement to understand your rights and obligations, especially regarding payment processing and notification of payment failures.

Document all interactions with the bank regarding this matter. If the bank is unresponsive or unwilling to resolve the issue, consider seeking legal advice. A lawyer can help negotiate with the bank and provide guidance on how to protect your rights and potentially prevent the repossession.

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