REPO Question

[jadeite788]

If the car was repossessed and then resold at the auction, is the company allowed to charge interest on the car after its been resold.

[Revelate]

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@jadeite788 wrote:

If the car was repossessed and then resold at the auction, is the company allowed to charge interest on the car after its been resold.

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On whatever the difference is between the loan amount and the resale price, absolutely I think.  

I don't know much about repo's, but I suspect that the auto collection fees may also be taken out of the resale price as a matter of accounting.  In any event, the repossession of a car I don't think clears the debt in all cases (and maybe not any), but I'm not a lawyer, and have no personal experience so take everything I state with a grain of salt in this case.   Hopefully someone can give you better specifics.

[llecs]

Unfortunately they can unless specifically expressed they cannot within the contract. They can add interest and add lates monthly to your CR unfortunately provided the auction price didn't pay 100% for the loan balance.

[Anonymous]

They can go after the balance left after the car sold at auction + auction and recovery costs, and they can tack interest on to that as well 

[bettercreditguy1]

Additionally, they can re sell the automobile, create a new loan, collect interest, etc. None of this will go towards paying off your loan, fees, collections, unpaid balances, etc. You are still on the hook legally for the difference of your original loan, minus the payments made, plus any other costs they have incurred including towing, storage, repo fees, etc. Your best bet is to settle as rapidly as possible or their add on fees may go through the roof!.