SimpleMind
Member
What is the name of your state (only U.S. law)? Wisconsin
I was recently in a car accident. I had a first Lien (which ended up being a wash). The problem is with my 2nd Lien, which was a loan I took out 3 years ago to consolidate credit card debt. When the insurance settled, the first lien was paid, and was pretty much a wash. I probably will have to pay something like $5.00 out of pocket, but it is pretty much a wash. The 2nd Lien was not covered. I will owe about $7,500. I thought the finance company was just going to switch the lien to another car I own, but it seems they don't want to take that route. They want me to pay off about 3 grand on the loan, jack up the interest rate to about 30%, and redo the loan paperwork for an unsecured loan.
MEANWHILE... I found out the insurance company paid off my first lien, signed off on the title, the claim is paid, and closed out. I contacted insurance why they did this, the insurance company told me they made over a dozen attempts to contact the 2nd lien holder for the payoff information, terms of the loan, and proof of the lien. The insurance company claims they have a policy of paying everything off within 14 business days, (it might possibly be state law). They waited 14 business days for the lien holder to provide them the information. Basically the 2nd lien holder did not send the information in the allotted amount of time.
The 2nd lien holder wants to force these new terms on me. Based on the circumstance, can the finance company force me to pay half of the loan off, and go unsecured with a 30% rate? I am not running away from the obligation, I only want to continue the same terms, and rate. I am also not in the financial situation to pay 3 grand off either. I need every bit of money I can for a down payment on a replacement car. Since the insurance settled, they can't hold my title hostage anymore.. I am not sure if this is a nightmare, or if this is a blessing..
I was recently in a car accident. I had a first Lien (which ended up being a wash). The problem is with my 2nd Lien, which was a loan I took out 3 years ago to consolidate credit card debt. When the insurance settled, the first lien was paid, and was pretty much a wash. I probably will have to pay something like $5.00 out of pocket, but it is pretty much a wash. The 2nd Lien was not covered. I will owe about $7,500. I thought the finance company was just going to switch the lien to another car I own, but it seems they don't want to take that route. They want me to pay off about 3 grand on the loan, jack up the interest rate to about 30%, and redo the loan paperwork for an unsecured loan.
MEANWHILE... I found out the insurance company paid off my first lien, signed off on the title, the claim is paid, and closed out. I contacted insurance why they did this, the insurance company told me they made over a dozen attempts to contact the 2nd lien holder for the payoff information, terms of the loan, and proof of the lien. The insurance company claims they have a policy of paying everything off within 14 business days, (it might possibly be state law). They waited 14 business days for the lien holder to provide them the information. Basically the 2nd lien holder did not send the information in the allotted amount of time.
The 2nd lien holder wants to force these new terms on me. Based on the circumstance, can the finance company force me to pay half of the loan off, and go unsecured with a 30% rate? I am not running away from the obligation, I only want to continue the same terms, and rate. I am also not in the financial situation to pay 3 grand off either. I need every bit of money I can for a down payment on a replacement car. Since the insurance settled, they can't hold my title hostage anymore.. I am not sure if this is a nightmare, or if this is a blessing..