GM is the abbreviated form of General Motors. It has an arm that runs its financial activities. This arm is popularly known as GM Financial. It is also a response to issuing auto-finance loans. Let’s Know More About GM Financial Repossession Policy.
GM’s financial repossession policy explicitly states the terms and conditions by which the company can repossess an auto loan should a client fail to meet up with payment schedules.
GM’s repossession policy
- GM, unlike some other auto loan agencies, doesn’t immediately initiate a repossession after just a few days of a breach in the payment agreement. In compliance with state laws, the company doesn’t initiate the repossession process without prior notification. They usually issue a notice to the defaulting clients, who are the ones who are usually too far behind on payment.
- GM handles repossession cases uniquely. They don’t treat all cases the same. They handle it based on the terms and conditions given to individuals at the time when the loan was issued.
- Someone with a good repayment history might be granted some level of leniency if the person is failing to meet up just this one time. That is why you should speak to them once you discover that you might not meet the repayment schedule.
- GM makes use of agents to carry out the repossession. Although they are not allowed to use force to gain access to your property should the car be in an enclosed space, you as the defaulting party also don’t have the right to hide your car from them by any means.
- They have the right to drive the car away without informing you if it’s in an open space.
- GM gives allowance for an extension on the loan repayment period. You can discuss this option with the company and if you are deemed worthy of that privilege it will be approved.
- Their repossession policy also allows you the opportunity to gain your car back. They have two ways of doing that;
- You will be asked to pay some amount of money that will serve as a cover-up for missed payments and other required charges.
- The second option is that you pay up all the amount you are owing along with some other stipulated charges required by the lending company.
- The company might decide to auction off the car after repossession. However, the company might give an allowance for you to get the car back before the auction, by notifying you of their intentions.
- After the car has been sold and it still doesn’t cover the total amount, you have a deficiency balance. This means that you are still going to be responsible for paying off the remaining amount.
Customer’s right at repossession.
- The lending company isn’t allowed to use force when they want to repossess the car.
- They can’t break into your garage or any of your property if it’s under lock and key.
- The repo agent is not permitted to damage any of your property.
- They are not allowed to issue a threat of arrest to their customers.
- They are not permitted by law to involve the police during the repossession process.
- During the repossession, if any of your personal property is in the car, the company must return it to you. These personal effects don’t cut across car accessories necessarily.
- In some states, the repossession agent must be certified by the Department of Banking and Securities with legal documents. In this kind of locality, should the repo agent be unlicensed, then you might have a case against the lending company.
Should any of these rights be violated you have the right to sue the company.
Tips on avoiding repossession
- Defer a payment.
The option to postpone payments until you can realistically resume payments. It can also mean you are allowed to pay less than the initial monthly payment.
- Sell the car
You can dispose of the car totally by selling it. If the car is going to cost you much and a lack or absence of it will cost you less you can explore the options to sell it off.
- You can voluntarily turn in the car.
By driving the car to the company, you would have helped the company avoid the stress of hiring a towing vehicle.
- Consider swapping
You can consider swapping your car for a cheaper model if the payment demands are too much on the present one. This is usually a plausible option when the cost of the car and its maintenance is already higher than what you have been able to repay.
- Refinancing.
This could involve a total restructuring of your payment plans, which could sometimes mean an extension in the period of payment.
Conclusion.
GM’s financial repossession policy seems fair enough because they are willing to sit down and work out a means for the customers to pay off their debts. They often follow laid-down guidelines to ensure that customers’ rights are not trampled upon in the process of repossession.
Frequently asked questions about GM’s financial repossession policy
Does GM financial repossess cars without notification?
They have the right to repossess without notification as long as the customer has breached the terms of repayment. However, in some cases, they do give notifications.
Does GM Financial grant an auto-loan waiver?
It is very rare to hear that loan waivers are being granted by GM.
Do I have the option to defer my loan payment?
It is possible if you discuss your financial situation with them early enough.
