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credit union Added car insurance to a loan!!??

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Junior Member
What is the name of your state (only U.S. law)? pa

I bought a car last july a provided proof of full coverage at the time of purchase.. since then i have moved twice last time in january of this year, i mailed the update address form and have kept insurance and im up to date (ok im a week late now) but i got a call yesturday from a repo agency and it seems genisys wants the car repoed since it is now 2100 past due, they added insurance and they claim they couldnt get in touch with us to validate our insurance which is the same its been. my question is, is this legal and if so what are my options to keep my car, i hid it for now until i talk to them monday all this i got from the repo person over the phone, strange right?


Senior Member
It is perfectly legal. Also, the creditor did not add car insurance, it is loan insurance. The car is still uninsured, even if you are a week late. You are now in default, your options are to get current on the loan. The creditor can also demand full payment for the total amount due.


Junior Member
I looked it up and this is what I found,,,

How CPI Works

When a borrower takes out a loan for a vehicle at a lending institution, he or she signs an agreement to maintain dual-interest insurance, protecting both the borrower and the lender with comprehensive and collision coverage on the vehicle throughout the life of the loan. The borrower provides proof of insurance to the lender, which is verified by the CPI provider or a tracking company (eg. Miniter Group & van Wagenen Financial Services, Inc.).

If proof of insurance is not received, notices are sent to borrowers prompting them to obtain required coverage. If responses to notices are not received, the lending institution may choose to have CPI coverage “force-placed” on the borrower’s loan to protect its interest from damage or loss.

The lending institution passes the premium charge on to the borrower by adding the premium to the loan principal and increasing the loan payments. If the borrower subsequently provides proof of insurance, a refund is issued.

Throughout the life of a loan, the CPI provider monitors proof of insurance to ensure that policies remain in force. If policies lapse, notices are sent in accordance with the procedure outlined above.

And like I said in my previous thread, the car has always had full coverage insurance and still does to this day, so if what this is saying is the case what should be my next move?


Junior Member
Thanks all cleared up...

Thanks I was able to clear it all up, it appears mistakes where made on there part well actually there cpi provider that is suppost to track your policy and also it appears someone dropped the ball on listing them as co loss payee on our policy (the women at the dealership) who was suppost to send it over! Thanks man for the advice I was very nervous..

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