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Discussion Starter · #1 ·
DH bought a used car in May. Long story short, the second insurance payment wasn't made and the insurance was canceled in the end of June. I found out about it a couple weeks ago. We rearranged money already accounted for, and got new insurance with the same company.

Yesterday we got a letter in the mail saying that the credit union that gave us the car loan was notified by the insurance company that it was canceled in June, which violates the loan agreement. They need proof of continuous insurance within 5 days.

We have a copy of the insurance card that shows October as the end date, but I'm assuming that won't do any good since they were notified by that company. And I don't know if it would put us at risk of fraud to try to use that.

We're in the worst financial position we've ever been in. We'll be out of it next month. We owe $5,000 on the car loan. We could potentially have that paid off by December, but we have literally nothing beyond the monthly payment that we could give in the next two weeks.

We have "nothing" to sell. Our tv is 15 years old, as is most of the furniture. Our computer is old. Our rent is phenomenally low. I walk to work. I tried a yard sale and Craigslist and made less than $100. I have no real jewelry.

And of course we have bad credit. DH was able to get the car loan through the credit union by the skin of his teeth. The only thing I can think of is to get a loan that will cover what we owe the CU, but I don't know where we'd find one with our credit. We have no credit cards. I would be willing to take one on if we could get a limit that would cover the car loan. I know it goes against all principles of good money management. But we're not at risk of overusing a card. Our financial situation will change next month, and we could make that card our top priority and have it paid off in as few as four months.

We can't lose this car. It's a 2002 with over 100,000 miles. We bought it for the brand reliability and because DH's dad will work on this brand for only the cost of the parts. DH drives 20+ miles to work every day and needs a reliable car and a cheap mechanic. This car was supposed to be the beginning of getting out of debt for us. :( Letting it go would mean settling on a very cheap clunker that would add up in wear and tear very quickly while we tried to save to buy another reliable car with cash. This car was the one good money decision we've made in years.

Help, please.
 

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Call the Credit Union, explain the mix up, apologize profusely, and see what they say.

They don't want your car - it's not worth it to them for $5k on a 100k mile 2002 car.

If your car loan is covered and you have insurance NOW, I'm betting they'll work with you.
 
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Standard form letter is sent when they receive notification from insurance company that insurance has lapsed. When you paid and reinstated your insurance, the company SHOULD have notified your lender. Just call your insurance company and ask if they notified your lender.
 

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Discussion Starter · #6 ·
Thanks, Savvy. Hopefully they did. We'll find out tomorrow. DH is going in to talk to or plead with them. But regardless of the notice there was still a gap that was over 30 days, which is still in violation of the loan agreement. :(

The responses gave me a new outlook, though, and I'm going to assume it will all work out.
 

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The responses gave me a new outlook, though, and I'm going to assume it will all work out.
No.

NO NO NO NO NO!

DO NOT ASSUME.

Get on the phone and take ACTION.

If you talk to them, if YOU take the bull by the horns and reach out first, you will get a much more understanding party on the other end 9 times out of 10. If you just wait, do nothing, and take no action, and just assume it'll work out, you surrender your fate to them.

If you want to assume, you have my permission to only ever assume ONE thing: Avoiding a potentially negative situation will NEVER make it better, only worse.
 

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DH bought a used car in May. Long story short, the second insurance payment wasn't made and the insurance was canceled in the end of June. I found out about it a couple weeks ago. We rearranged money already accounted for, and got new insurance with the same company.

Yesterday we got a letter in the mail saying that the credit union that gave us the car loan was notified by the insurance company that it was canceled in June, which violates the loan agreement. They need proof of continuous insurance within 5 days.

We have a copy of the insurance card that shows October as the end date, but I'm assuming that won't do any good since they were notified by that company. And I don't know if it would put us at risk of fraud to try to use that.

We're in the worst financial position we've ever been in. We'll be out of it next month. We owe $5,000 on the car loan. We could potentially have that paid off by December, but we have literally nothing beyond the monthly payment that we could give in the next two weeks.

We have "nothing" to sell. Our tv is 15 years old, as is most of the furniture. Our computer is old. Our rent is phenomenally low. I walk to work. I tried a yard sale and Craigslist and made less than $100. I have no real jewelry.

And of course we have bad credit. DH was able to get the car loan through the credit union by the skin of his teeth. The only thing I can think of is to get a loan that will cover what we owe the CU, but I don't know where we'd find one with our credit. We have no credit cards. I would be willing to take one on if we could get a limit that would cover the car loan. I know it goes against all principles of good money management. But we're not at risk of overusing a card. Our financial situation will change next month, and we could make that card our top priority and have it paid off in as few as four months.

We can't lose this car. It's a 2002 with over 100,000 miles. We bought it for the brand reliability and because DH's dad will work on this brand for only the cost of the parts. DH drives 20+ miles to work every day and needs a reliable car and a cheap mechanic. This car was supposed to be the beginning of getting out of debt for us. :( Letting it go would mean settling on a very cheap clunker that would add up in wear and tear very quickly while we tried to save to buy another reliable car with cash. This car was the one good money decision we've made in years.

Help, please.
If you don't have car ins on a car with a loan they normally add the ins for you at an outrageous rate and only for them to be paid for the car should there be an accident. Why don't you contact them and see if they will just add that onto your loan that you already have for the amount of time you were not insured. OR will the insurance company in any way allow you to back pay. (It would really be in their best interest; they'd be getting money for time already passed with no accident happening(free money for them)
 

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so was your husband actually driving this car for the 30+ days that it wasn't insured??
 

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No.

NO NO NO NO NO!

DO NOT ASSUME.

Get on the phone and take ACTION.

If you talk to them, if YOU take the bull by the horns and reach out first, you will get a much more understanding party on the other end 9 times out of 10. If you just wait, do nothing, and take no action, and just assume it'll work out, you surrender your fate to them.

If you want to assume, you have my permission to only ever assume ONE thing: Avoiding a potentially negative situation will NEVER make it better, only worse.
She said her husband is going to call the credit union, Greebo. You want them both to call the credit union? She didn't say she was going to wait around for an answer to fall into her lap, guys.

willbestressfree, I came in to say pretty much the exact same thing. The credit union doesn't want your car. Even if they did, a repo takes awhile. By the time it happens 'next month' and whatever money solution you have planned will likely be here.

And even if you did lose that car (pretty stupid on the part of the CU, imo) it's not the end of the world. So what if you have to drive a clunker? It sounds like your situation is bad enough that a recalled car loan is going to be a hill of beans in comparison. Get that clunker. Bum a ride. Walk.

Most importantly, you need to start planning now to make sure that this doesn't happen again.

Hang in there. this will pass.
 

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She said her husband is going to call the credit union, Greebo. You want them both to call the credit union? She didn't say she was going to wait around for an answer to fall into her lap, guys. .
Yeah, you're right, she didn't. Sorry - "assume" is a red flag to a bull for me - I saw that and the rest of the context of the post just slid on by my processors.

My apologies. :)
 

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Yes, I think she should be in contact with the Credit Union. If nothing else, the negotiations should be able to drag things out until they have money to pay off the loan.
And 30 days of supplemental ins from the credit union doesn't sound like the worst solution.
 

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IF you are currently insured and current on your payments they WILL NOT take that car. You got a standard letter, you only need to show them proof of current insurance and they will back off.
 

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Discussion Starter · #18 ·
Wow!

Ok, first Greebo, I sincerely appreciate your concern, and you're right. I need to be careful about assumptions. But as someone else pointed out, I was probably using the wrong word. My husband is going into the credit union today. The only reason it isn't a joint venture is because it's 20 miles from home, near his work. If it was in both of our names I would be more physically involved, but since it's only in his and it isn't convenient for me to be there with him, I'm going to let him handle it.

It never occurred to me that an insurance company may be willing to let us back pay and pick up the month we missed. I'll call them today and see if that's a possibility. I hate that there was a lapse. ETA: I called and they don't backdate. Bummer. :(

And this has all really made me realize the urgency of our situation, that while I can count on DH for nearly everything, I can't count on him to pay bills on time (and he probably figures he can't count on me for the same). So I spent the whole day yesterday going through bills and papers and teaching myself how to use Quicken. I'm in awe! By the end of September we'll have plenty of 'leftover' money for our baby e-fund and we'll be able to start snowballing. We should have our $1,000 by mid-October. And I was able to manipulate the next couple weeks to keep us out of the red. I'd already started envelopes, so I'm using them to organize the actual bills and for back up tracking. I knew this rut wouldn't last long, but it's amazing to see 'on paper' how fast we can get out of it. I know the real trick is sticking to the budget, but this is a first huge step towards making that happen.

Thanks, everyone!
 

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Discussion Starter · #19 ·
One last post of thanks. DH went in today and they totally p'shawed the letter. They thanked him for bringing in the proof that it was taken care of, and he was good to go. I stressed over nothing. I can live with that. :)
 

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Yay! I'm glad it worked out for you. :cheer4:

Now get to work on that budget! :laugh:
 
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