Negotiating with Credit union on Car Loan-No plan to file Bankruptcy in California

[maryelizabet]

I arranged a modification of my car payment with my credit union in September 2008. I obtained the loan in March of 2006, with interest at 4.99% with payments of $810.00 per month. I lost my job, then became disabled. I contacted the credit union and requested a modification of my terms because of my situation and because I was unable to sell the car because it is upside down by about $18,000. The credit union agreed to modify for six months to payments of $200 per month at 2% interest. They called me the end of this March to advise me that the terms of the modification are now up and that my car payment needs to go back to $810 per month. I asked them if they would consider extending the modification. They said I would need to fill out a new application. I requested a copy of my original loan package because I am unable to find any of the paperwork with regard to my car loan and asked them to also send me a new loan application. They didn't send me the loan application or a copy of the loan documents. I have written them every month since that phone call, requesting that they notify me of their intentions and asking for a copy of my loan docs and if they will consider extending the modification agreement. I have been sending an extra $75 to $125.00 per month with my letters over and above the $200 modified payment and explained that I am doing my best to send extra money when I can. After five months of silence, I finally go a letter simply stating that they will not agree to a modification and my payments are $810. No mention of their five months silence; no mention of my request for a copy of the loan package. I have the pink slip without any lienholder showing on the title. I want to know, HOW DO I GET A COPY OF MY LOAN PACKAGE. And, can they repossess my car without me having any evidence of their lien which seems to be an "unsecured" lien as far as I can tell. I have the Title and I have no loan documents to tell me what justifies their claim to require payments from me in the first place. I realize I have this loan and I do intend on making payments. I am just at my wits end because they are not communicating. I am afraid I will wake up one day and my car will be gone. I have shared this fear in my letters to them, asking them to please respond and let me know what their intentions are and to send me a copy of my loan docs. Anyone know what recourse I have with this credit union?

[LuciluS]

Have you sent the letters Certified Mail with Return Receipt Requested? If not, you need to do so. I'm sure you've got the letter save on your computer. Above the Address type in:

CERTIFIED MAIL
RETURN RECEIPT REQUESTED

Make sure in your letter you give them a deadline for you to receive these documents. Then go to the Post Office & ask for the Certified Mail Return Receipt Requested form. If you don't know how to fill it out, I'm sure someone at the post office will help you. This will probably cost you close to $6.00, but it will be worth it.


You wrote:
I have the Title and I have no loan documents to tell me what justifies their claim to require payments from me in the first place.Whose name is on the title. Look at the back and see if there are any names listed. If the title is in your name only, then the lien was not perfected.

Normally a loan company will send the title to the State Motor Vehicle Dept. for them to put your name as the owner and the loan company as the Lien holder. Some States hold the titles, some states return the titles to the loan company. The owner of the vehicle only gets the title after the loan is paid off.

If this wasn't done, that's probably why they haven't sent you the loan papers. They know they have messed up. Like I said, if you have the 'Original Title' and your name is the only name listed along with a State Seal, you own a vehicle free and clear.

I would still send another demand letter asking for the loan papers. BTW, someone at the loan company will have to sign for the letter you sent and you will get that back from the Post Office with the signature on it.
Is the loan company listed on your vehicle insurance policy?

Here's hoping your Title only has your Name on it. You would then own it outright and no other payments would need to be made.

If you are unsure, you might call an Attorney and ask for a Free Consult.