Can my auto loan company force me to put in and pay for a GPS system in my car?

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Can my auto loan company force me to put in and pay for a GPS system in my car?

I have an auto loan and the loan has gone into default. When I tried to make payment they told me in order for them to take any more payments from me, that I had to pay the full balance. They also said that I have to pay for a GPS system to avoid future issues. They are stating because they had repossession set but they have not been able to find the car and all my contact information were not numbers they could get through to.

Asked on December 19, 2011 under Bankruptcy Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Yes, they can require you to do this:

1) You stated that you defaulted; once you default, they have the right to reposses the car and sue you for the remaining balance due on the loan (anything not paid off by repossessing and reselling the car);

2) Since they would have the right to repossess the car, they have the right to set conditions on NOT repossessing it--that is, they have the right to require you pay for and add a GPS system as a condition of them not going ahead with the repossesion. If you refuse, they can continue with the repossession, etc.


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