Avoid Being ‘Rooked with a Bad Auto Loan Modification

If you’re still paying on a high rate auto loan and struggle to make ends meet, you may be considering auto loan modification. An auto loan modification may help you prevent repossession and reduce car payments–but at what price?

With unemployment and bankruptcy rates continuing to skyrocket, car owners are barely scraping together enough money to make their monthly car payments, which puts them in jeopardy of losing their wheels.

Unfortunately, during troubled times predatory companies take advantage of sinking borrowers, plunging them deeper into debt. According to Better Business Bureau spokesperson, Alison Southwick, “Auto loan modification companies are following in the footsteps of unscrupulous mortgage modification companies which have long targeted struggling families who are just trying to stay above water.  Some companies may make it look like they are tossing out a life preserver, but they end up pulling many borrowers deeper underwater.”

How to Find a Good Car Loan Modification Company

How do you know you are working with a reputable auto loan modification company, especially when the bad ones are falling through the cracks?  The Better Business Bureau (BBB) says that consumers should be wary of auto loan modification companies who request advance fees based on verbal promises.

Additionally, the BBB offers these tips to steer consumers away from predatory car loan modification practices:

• Try your lender first–although in theory this is a great place to begin, your lender may not be able to help if you’ve lost your job or have been negatively impacted by the recession. Typically, credit score and payment history will dictate whether your lender will modify your loan
• Research auto loan modification companies–check with the BBB first to see if the company has government or legal action against it. Ask friends or family members if they’ve used the company to get an idea of service. Company testimonials can also help you  make a decision
• Ask for your agreement in writing–obtain all legal disclosures, which includes refund policies and money-back guarantees.  This will provide some level of protection should legal action be necessary down the road
• File a complaint with the BBB if you’ve been wronged–if you run into trouble or issues with your car loan modification company, contact the BBB to file a formal complaint.

How Can You Be Helped?

If your financial institution won’t work directly with you to resolve your auto loan payments, a reputable auto loan modification company will do the negotiations and come to a resolution with your lender.

Whether your loan has been placed under repossession status or you simply cannot make another high car loan payment, a good auto loan modification company will work as a liaison between you and your lender to arrive at a payment schedule where everyone is in agreement. This may be in the form of interest rate reduction or re-configuring terms and conditions of the loan–either way everyone wins. You avoid repossession and the loan doesn’t go into default.

You can retain ownership of your vehicle with a good auto loan modification company on your side. Inquire today about how Vehicle Loan Mod can help–your free consultation is only a click away!