If a bank or lender sends you a letter that says they are going to take your car, this probably means that they think you have missed a payment on your loan. Missing only one payment can be a “default.”
Get more information:
- If you do not recognize the company on the letter, it could be a scam, or your old lender could have sold your loan to a new company.
- Call the lender you normally pay to find out if you are in default.
- If they say you missed a payment, ask for their record of the payments you missed.
- Ask for a copy of your loan agreement if you do not have one. Look for a section on “repossession.” See if it says the lender can repossess your vehicle if you miss a loan payment.
- Check with your bank to make sure that your payment cleared.