Finance Company - HELP!

[fire228]

After a bad divorce, I filed for Bankruptcy at the beginning of 2012..

 

I bought a vehicle in Oct 2012. It was a used SUV and about 1500 miles after getting it, I started having issues with it. Overheating, Transmission issues, Stalling, etc

The dealership that sold me the car wouldnt do anything about it because it had no warranty and I was not about to spend another $3000+ on a vehicle I just bought.

 

I was financed through Flagship Credit for the SUV. They never reported me having the vehicle, nor making payments on it. So about 4 months after nothing showing up on my credit and not wanting to fix this vehicle, I went and talked to a friend who is a car salesman and got into a 2013 brand new car. He suggested that I just let them take the old vehicle and even if it showed up as a repo later on, it wouldnt be that bad because I already have a bankruptcy showing on there as it is.

 

Well Right away this new car showed on my credit and my payments have also which is good, But........

 

Now, after almost 7 months, the old finance company, Flagship has reported that used vehicle to my credit!!! Now I am showing 2 vehicles on my credit and they act like they refuse to take the old vehicle because its still in my driveway and I havent made a payment on it in about 3 months

 

 

[BRBiz]

That was some bad advice from the salesman.. You now have fresh bad credit right out of BK and a soon to be repo reporting. Not to mention I'm sure that loan you just got would not have happened had they known you already had a active auto loan.

[mk_378]

They don't have to repo the car if they don't think it's going to be worth their while to do so. A lot of people get stuck in that situation.

[MarvBear]

The flagship loan was post bk?

[fire228]

Actually I don't think it was bad advice at all. I mean I got a brand new car just a year after bankruptcy with a decent interest rate. Having a "Repo" on my credit doesn't really bother me much either because I already have a credit card, a house and now a new car, so I dont need to use my credit background for anything as it is.

 

It just pisses me off that Flagship could go 6 months and not report ANYTHING and then suddenly do it. I mean why didnt they just come get the SUV and leave it at that. I probably would have even spent the money to just have it fixed and kept driving it if it would have been on my credit and showed me making on-time payments so my credit would be rebuilding...I guess there is no law or timeline for a finance company to report a vehicle purchase though, even if the buyer is paying on time.

[BRBiz]

Ok so if your happy what's the issue? They aren't required to report.. It's possible they only report every three or 6 months ..

 

It may not seem like a big deal having a repo on your report because you don't think you have the need for the credit but your credit score effects a lot of things in your life. Your auto insurance may increase, your current credit limits could be lowered or even closed etc. What happens if you total this new car tomorrow and need to go buy a new one?

[fire228]

Because first off, I have never even heard of Flagship before and the only way they got my loan was because I had went through a bankruptcy and that's what they do, Finance people in bad situations. With that said, If they ended up being a company that just never reported the vehicle and only took my payments, then how was that helping me rebuild my credit and everything??

 

I really just want to know if there is a timeline law on when finance companies have to report a purchased vehicle and when the customer makes payments.

[stroked89coupe]

They are not required by law to report. If they choose to report they must do so accuratly.

[stroked89coupe]

I'm sorry but I just read through all of this again. I don't mean to come off as a jerk. But you messed up BIG time.

 

 

So you mean to tell me since your car that you just financed broke after 1500 miles and you not wanting to spend 3000 dollars to fix a car that you just bought, you went and spent 20K+ on another car? How does that make sense? That was the WORST advice your friend could have given you. What will happen because of this?

 

 

Repo on your credit report

Late payment history on your credit report.

Probably a judgement (Your probably going to get sued for the balance after the car is repo'd and since it is not running there going to sell it for no where near what it's worth. You then become responsible for the difference of what the car was financed for and what the car sold for.)

Possible wage garnishment

Crappy intrest rates on everything from insurance rates to loans.

The possibility of not being able to refinance a home if you currently own one.

The likely hood of not being able to OWN a home (After two years has passed from the BK discharge) because of this repo.

The likley hood of never being able to finance a car again while all of this is on your reports. If you do, Expect 20% + rates.

You cannot file for BK again for years to come. So there is no other protection you can use to sheild yourself from this debt gone bad.

Canceled insurance because of your credit score both home and auto.

Increased auto and home insurance rates - GAURANTEED!!!

There's more, But i'm going to stop here.

 

I speak from experience. I just discharged my BK less than a year ago. I am STILL suffering from increased home insurance rates (Double what I was paying before-No way around it)

 

 

I would not ever talk to that guy who pretty much just screwed you over. I REALLY wish you would have come here and asked for advice before you made that decision.

Edited May 3, 2013 by stroked89coupe

[stroked89coupe]

Actually I don't think it was bad advice at all. I mean I got a brand new car just a year after bankruptcy with a decent interest rate. Having a "Repo" on my credit doesn't really bother me much either because I already have a credit card, a house and now a new car, so I dont need to use my credit background for anything as it is.

 

 

You know what, After reading this I just don't know what to say except this.

 

You can learn a lot from CreditBoards and I encourage you to stick around and do countless hours of research.

Edited May 3, 2013 by stroked89coupe

[stroked89coupe]

Finance people in bad situations. With that said, If they ended up being a company that just never reported the vehicle and only took my payments, then how was that helping me rebuild my credit and everything??

 

 

I'm sorry to say, I hope you keep that brand new car for 7+ years. If not be prepared to only deal with finance company's that cater to people in ''Bad Situations''.

 

 

Here are a cupple of threads that give information and advice thats deals with twhat your going throught right now. I would suggest to you to start exploring your options now.

 

 

http://creditboards.com/forums/index.php?showtopic=451439

http://creditboards.com/forums/index.php?showtopic=28194

http://www.bankrate.com/brm/news/insurance/credit-scores1.asp

http://creditboards.com/forums/index.php?showtopic=506420

http://creditboards.com/forums/index.php?showtopic=482046

Edited May 3, 2013 by stroked89coupe

[BRBiz]

Because first off, I have never even heard of Flagship before and the only way they got my loan was because I had went through a bankruptcy and that's what they do, Finance people in bad situations. With that said, If they ended up being a company that just never reported the vehicle and only took my payments, then how was that helping me rebuild my credit and everything??

 

I really just want to know if there is a timeline law on when finance companies have to report a purchased vehicle and when the customer makes payments.

If you hadn't heard of them you could have researched them first before signing anything.. They aren't the only company that does post BK auto loans, it just happens to be the lender that dealership uses. They aren't there to help rebuild your credit just to give you a auto loan and make a killing off of the interest.

 

I guess good advice for others is a car salesman is always a car sale and even when he is a friend. They just want to make money no matter what happens.

 

All the info every one here has posted is true and accurate and that repo will effect you more then you think.. The creditor for your new car could even repo the new car if they wanted to since your probably violating a stipulation of the contract to have only one open auto loan.

 

Good luck with everything!

[luckie clutse]

So I just got a car loan with them....they don't report payments? wth?

[stroked89coupe]

So I just got a car loan with them....they don't report payments? wth?

 

 

That may or may not be the case for all people who they finance. It may just take some time. If it has been 6-8 months and nothing has shown up for you I would suggest calling them and asking them if they report and to please do so. Just remember, they are not required to.

[Jnavarro]

Seems pretty irresponsible not to make payments on it just because they didn't report to the CRA's. People will do anything to get out of paying for their responsibilities. SMH

[hrguy]

Seems pretty irresponsible not to make payments on it just because they didn't report to the CRA's. People will do anything to get out of paying for their responsibilities. SMH

I wouldn't do that again, and stop bumping dead threads when you are not contributing - no judgments