A TIKTOKER found a legal loophole for getting money back on a repossessed vehicle.
He shared how to go about getting your car down payment returned to you.
Mike, a content creator (@alwaystouchingmoney_inc), shared a video from the post office where he went to mail out a few forms, including a request to have his down payment returned to him for a vehicle repossessed in 2021.
He claimed that his Truth in Lending rights were violated.
Truth in Lending laws protect consumers by requiring lenders to disclose certain terms and costs associated with borrowing money, such as vehicle financing.
If a lender violates these requirements, it could impact the validity of the loan contract and the repossession.
He sent the request to the Nissan dealer that he purchased the car from and created a second video with the dealership’s response.
“You mentioned the Truth in Lending Act but not the subsection of the Act that pertains to your contract,” responded the dealership.
“Please provide a specific subsection as we cannot ascertain any statute that would be applicable to your contract.”
Mike continued to explain his thoughts on the matter.
“Why are they asking me to pretty much quote what it says in the subsection of this? That’s crazy, but you know that’s how they play,” said the TikToker.
The U.S. Sun reached out to Mike for comment.
If you end up missing a loan payment, there are six measures you can take to avoid a car repossession.
1. Keep in touch with your lender
The first thing you can do is keep in touch with your lender, constantly updating them on your current situation.
They prefer that their customer pay off their loans rather than repossessing the vehicle, so keep them in the loop to see what can be done.
2. Modify your loan
A second thing you can do is inquire about a loan modification.
Repossessing a customer’s vehicle is a hassle for a lender as well, so they may consider reducing your loan payment.
3. Make your loans current
If you can, pay off the payments and fees you owe in order to renew your loans, which can prevent a repossession.
4. Sell your car
Another option to prevent repossession is to sell your car, pay off your loans and fees, and opt for a more affordable vehicle.
5. Refinance your car loan
Fifth, you can extend your loan term to get a lower monthly payment or diminish the interest rate.
6. Surrender your vehicle
The last option for avoiding a repossession is to surrender your car to the lender.
This differs from a repossession, but you won’t be able to drive the car around anymore.
If you choose to surrender your car, the lender will auction it off.
If the earnings do not match what you originally owe, then you will have to pay off the remaining balance.
