January 23, 2017
You’ve fallen behind on your monthly payments for a car,
house or another type of loan. Now the
creditor is threatening to accelerate your loan.
Loan acceleration is when the creditor says “no more monthly payments. You owe us the whole outstanding amount of the loan, in full, immediately.” It usually means the creditor’s going to repossess the car, and maybe also sue you for the amount owed.
Can they do that? Yes, if (1) you are behind on your payments, and (2) the creditor follows the correct steps and procedures. But they do have to follow the right steps, and you do have the right to catch up the payments you’ve missed. Probably the most common situation where loan acceleration occurs is in car loans, so read this article on the Legal Aid web site about car loan collection [http://www.lawv.net/Resources/Self-Help-Library/Consumer/Car-Loan-Collection-and-Repossession-Common-Questions] to learn more about loan acceleration, and your rights as a consumer.
Different cases have different circumstances and
complications. The information on our website is to help you understand the
issues that may come up in a loan acceleration case and is not intended to
address every possible situation.
Disclaimer: For more guidance about your particular situation, please contact Legal Aid online at http://www.lawv.net/Get-Help/Apply-for-Help, by calling 866-255-4370, or talk to a private attorney.