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In a recent turn of events, several major automotive finance companies are facing financial distress, with some even going out of business. The latest company to join this unfortunate trend is American Car Center, a prominent Buy Here Pay Here chain operating across 10 states with over 40 locations. As they close their doors, leaving 288 employees terminated, borrowers are left in a precarious situation.
If you find yourself in the position of having an active loan with a company that’s shutting down, the immediate concern is understanding the implications for your ongoing payments and, crucially, securing your vehicle’s title. In this blog post, we’ll explore what borrowers should do in the aftermath of their auto finance company going out of business.
As a borrower with an open loan, one of the first actions recommended is filing with your state’s Dealer Licensing Division for a title recovery. This proactive step ensures that you initiate the process early, potentially safeguarding your rights to obtain the vehicle’s title.
Consider starting the civil lien process in your jurisdiction to assert your ownership of the vehicle. While this step may vary based on state regulations, it’s advisable to explore your options for securing legal ownership rights to the vehicle.
While this advice provides a general roadmap, it’s crucial to note that it’s not legal counsel. Borrowers are encouraged to seek advice from a legal professional to fully understand their rights, consumer protection rights, and the most appropriate actions to take in their specific circumstances.
Waiting until the end of your loan term to address these issues might jeopardize potential avenues for resolution. Taking prompt action ensures that you can leverage any available funding from restitution funds and, more importantly, protects your rights to the title or lien release from the defunct finance company.
For borrowers still making payments, there’s a delicate balance between avoiding unnecessary payments and ensuring compliance with contractual obligations. Starting the recovery process early allows borrowers to make informed decisions about whether continuing payments is necessary or if they risk defaulting on the loan.
Finding out that your auto finance company is going out of business can be unsettling. However, taking immediate and proactive measures can help protect your interests, ensuring that you navigate the aftermath with a clear understanding of your rights and potential avenues for securing your vehicle’s title. Remember, early action is key, and seeking legal advice is a prudent step to ensure the best possible outcome in a challenging situation.
Don’t let uncertainty hold you back. If it’s your car, you deserve a title.
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