What rights does an auto loan company have?

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What rights does an auto loan company have?

I purchased a used car in 2008 and got it financed through a loan company. In 2009, I fell on hard times and was granted a payment modification. This summer, the company issued a judgement for the total balance of the vehicle, plus attorney fees, but I was still making payments. The modification expired this August, so with help, I have been making the full monthly payments. My credit report still states that I have a judgement and they told me that I have only been paying on interest so I am still delinquent. Can they do this?

Asked on October 20, 2010 under Bankruptcy Law, Maryland

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The payment modification was for a lesser amount for a longer period of time?  You were/are probably paying interest only on the loan as per the modification but that would not make you delinquent or make you have a judgement against you.  So what happened here?  Something does not really sound right and I would indeed investigate it.  Take all you documentation - the loan, the modification and the paperwork as to the judgement - to an attorney in your area to review.  If ou can not afford an attorney then I would consider hat you contact the State Attorney General's Office for help.  They can point you in the right direction, especially if there has been some sort of wrong doing with the loan.  Good luck.  


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