• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Can they repossess?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

TAZALAN

Junior Member
What is the name of your state (only U.S. law)? Nebraska. Kinecta Credit Union is harassing me with calls claiming I owe them for late payment fees and penalties for lapse of insurance during the 72 months I made payments. I have documentation that I made ALL 72 payments in full and also from my insurance provider that there was NEVER a lapse in insurance, that the truck has always been covered since I purchased the vehicle. They are calling threatening to repossess the truck and are holding my Title until I pay them. My question is this...can they take my truck on these false grounds of penalties that shouldn't exist?
 


TAZALAN

Junior Member
What happened when you provided them proof of coverage?
Nothing specifically. They just keep calling. 5-10 calls a day. Usually different people every time. Some leave voice mails and numbers. I have tried to call these numbers repeatedly and always get a "no longer in service" recording. I've never talked to the same person twice. When they call and I tell them I mailed the information to the address given by one of their representatives. They say someone will get back to me. And I still just get the same calls...threats to repossess...etc...
 

Zigner

Senior Member, Non-Attorney
Nothing specifically. They just keep calling. 5-10 calls a day. Usually different people every time. Some leave voice mails and numbers. I have tried to call these numbers repeatedly and always get a "no longer in service" recording. I've never talked to the same person twice. When they call and I tell them I mailed the information to the address given by one of their representatives. They say someone will get back to me. And I still just get the same calls...threats to repossess...etc...
Have you called the credit union directly about this matter? Not the numbers that are given on the phone calls, but the actual credit union...
 

TAZALAN

Junior Member
Have you called the credit union directly about this matter? Not the numbers that are given on the phone calls, but the actual credit union...
I called the number listed on my payment stubs and on the collection letters they send. Each representative I speak with claims I owe them over $9000 in penalty fees for late payments and insurance lapse during the term of the loan. It has only been recently, the past 45 days that I fonally sent the documentation from my insurer that states there was never, at any point over the term of the loan, any lapse in insurance. As for late payments, I had 5 payments that were late over the loan period. The payment stub states those late fees are $35. Which I am willing to pay. But they are asking for $9000 plus to settle the account and send my title. The truck loan is paid in full, all 72 payments with interest of over 6%! Without spending the money for an attorney which I cannnot afford, my concern is them trying to repossess. Do they have legal ground to stand on to take the vehicle?
 

bdancer

Member
I called the number listed on my payment stubs and on the collection letters they send. Each representative I speak with claims I owe them over $9000 in penalty fees for late payments and insurance lapse during the term of the loan. It has only been recently, the past 45 days that I fonally sent the documentation from my insurer that states there was never, at any point over the term of the loan, any lapse in insurance. As for late payments, I had 5 payments that were late over the loan period. The payment stub states those late fees are $35. Which I am willing to pay. But they are asking for $9000 plus to settle the account and send my title. The truck loan is paid in full, all 72 payments with interest of over 6%! Without spending the money for an attorney which I cannnot afford, my concern is them trying to repossess. Do they have legal ground to stand on to take the vehicle?
Your problem is that when you made the late payment and didn't immediately pay the late fee. That fee came out of the next payment which then made that payment short causing another late payment ... this domino effect could result in a very large balance even after you paid all payments.

You may have better luck with the insurance coverage. But even that might not be so easy to get removed after the fact. Did you not receive notices about the insurance? And was your insurance company sending the lender insurance certificates showing them as loss payee and additional insured?
 

TAZALAN

Junior Member
Your problem is that when you made the late payment and didn't immediately pay the late fee. That fee came out of the next payment which then made that payment short causing another late payment ... this domino effect could result in a very large balance even after you paid all payments.

You may have better luck with the insurance coverage. But even that might not be so easy to get removed after the fact. Did you not receive notices about the insurance? And was your insurance company sending the lender insurance certificates showing them as loss payee and additional insured?
Yes. The insurance company provided proof of insurance certificates throughout the length of the loan. I did not receive insurance "lapse" letters. And as previously stated. I have documentation from my insurance provider that there was NEVER a lapse in my coverage. I had 5 late payments. I did not pay the late fees. I paid the payment total listed on the stub. I called each time and gave them reason for payments being late. So you're suggesting that five $35 late fees can turn into excess of $9000? This "Advice" forum hasn't been much help. My initial question was never answered. I have paperwork stating the truck is paid in full...all payments with interest. I made 72 payments and paperwork stating that the insurance never lapsed. Why so many variables? Do they have legal grounds to repossess my vehicle or what they claim are "late fees"?
 

LdiJ

Senior Member
Yes. The insurance company provided proof of insurance certificates throughout the length of the loan. I did not receive insurance "lapse" letters. And as previously stated. I have documentation from my insurance provider that there was NEVER a lapse in my coverage. I had 5 late payments. I did not pay the late fees. I paid the payment total listed on the stub. I called each time and gave them reason for payments being late. So you're suggesting that five $35 late fees can turn into excess of $9000? This "Advice" forum hasn't been much help. My initial question was never answered. I have paperwork stating the truck is paid in full...all payments with interest. I made 72 payments and paperwork stating that the insurance never lapsed. Why so many variables? Do they have legal grounds to repossess my vehicle or what they claim are "late fees"?
No, 5 late payments could not translate into 9000.00. However, for example, if you were late on your first payment, and they applied 35.00 of your next payment to the amount you paid on your second payment, you could theoretically end up with 72 late payments which would total 2520.00. However, if they never dunned you for these late fees during the course of the loan, it really doesn't make sense that they would have been applying current payments towards the late fee first...eventually those late fees would have put you months behind in regular payments, which would have caused them to repo your car long ago.

I think that you need to go into the nearest branch in person, with your evidence, and talk to them.
 

TAZALAN

Junior Member
No, 5 late payments could not translate into 9000.00. However, for example, if you were late on your first payment, and they applied 35.00 of your next payment to the amount you paid on your second payment, you could theoretically end up with 72 late payments which would total 2520.00. However, if they never dunned you for these late fees during the course of the loan, it really doesn't make sense that they would have been applying current payments towards the late fee first...eventually those late fees would have put you months behind in regular payments, which would have caused them to repo your car long ago.

I think that you need to go into the nearest branch in person, with your evidence, and talk to them.
That's the problem. Kinecta is in San Diego or City of Industry CA...and I now reside in Nebraska. So stopping in really isn't an option. And my call to the number listed online for them never gets me the same person twice and I have explained the situation numerous times with the promise someone would get back to me. The people getting back to me are collection's reps with a onslaught of different threats. I have written and sent a letter of dispute and sent the documents from the insurance carrier stating there was never a lapse in insurance and the document showing my last payment of 72 was paid. My next step is to contact the State's AG and the FTC regarding the harassing calls. I'm not sure what else to do. I was merely looking for some advice or helpful direction as to the repossession efforts and hoping that they cannot take my truck based on those unjustified fees. Thank you.
 

Heir7

Member
I did not pay the late fees. So you're suggesting that five $35 late fees can turn into excess of $9000?

Part of the $9000 is probably from the late fees and the extra interest charged because when you did not pay the late fees your payment did not cover the scheduled amount of principal balance it should have covered. The rest of the $9000 is probably what they charged you for an insurance policy they bought for your car to protect themselves because they assumed you did not have insurance on the car. They probably sent you a notice about it, just like they sent you notices about the late fees, and you either didn't notice it, or ignored it.

I have paperwork stating the truck is paid in full...all payments with interest.

What does this paperwork say, exactly?


I made 72 payments and paperwork stating that the insurance never lapsed. Why so many variables? Do they have legal grounds to repossess my vehicle or what they claim are "late fees"?
Yes, they can repossess your car for unpaid late fees and unpaid insurance.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top