Can a finance company suspend my car registration because of late payments?

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Can a finance company suspend my car registration because of late payments?

Asked on July 21, 2011 North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You need to read the loan agreement that you have with the company that has a lien on your vehicle for your loan. Its terms and conditions would govern what it can do if you fail to make monthly payments on time.

Suspending the car registration is not one thing it can do. Your State's department of motor vehicles issues car registration forms on a yearly basis to car owners who pay the fee. You get a sticker for the year paid to be placed on the license plate. Your finance company for your car is not a governmental entity that can suspend your vehicle's registration. Only the department of motor vehicles can do this.

Good luck.


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