Driving Toward Delinquency
With a strong economy and improving employment market, you might be surprised to learn that the number of Americans at least 90 days behind on their monthly installments has hit record levels. The New York Fed places the number of “distressed borrowers” at seven million, representing a staggering growth of approximately seventeen percent since 2010—a year during which consumers were still feeling the aftermath of a financial crisis that rivaled the Great Depression. This increase in delinquency appears to be a result, at least in part, of a growth in the use of third-party subprime auto financers that loan to less qualified buyers in exchange for higher interest rates than a dealership would normally offer.
Purchasing a car is a significant investment. For many consumers, it is not a luxury—it is a necessity that is required for transportation to and from work. If you have fallen behind on your car loan payments, you are not alone. However, failing to pay your loan is a serious matter because you expose yourself to potentially having your car repossessed, leaving you unable to earn a living.
Know your rights. If you have missed payments or are unable to make your payments, contact Cohn Lifland Pearlman Herrmann & Knopf.