Can my previous bank repo my car?

by Nicole
(Portland, Oregon )

I refinanced my car with my credit union so I did not pay this month's payment to the old bank. That payment is now late and my old bank has not received the refi Paperwork yet. Can the previous bank attempt a repossession?

Reply from DebtCollectionAnswers.com:

Nicole - You are still responsible for any payments remaining on your loan until the loan is paid off in full by the new lender. In addition, your credit report may list a late payment while you are waiting for the refi to be completed.

If it's not too late, go ahead and make that payment so you don't create additional problems for yourself. If you can't afford to make that payment, talk to your "old" lender as soon as possible. They will probably be willing to work with you if they know the loan will be paid off soon.

Finally, after the refinance has been completed make sure you get and keep the paperwork showing the old loan was paid off, and check your credit reports to confirm they list a zero balance.

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