A girl we know separated from her husband about 5 months ago. She called to get her car loan put in her name only, and they told her that her interest rate was going to be raised and she owes retroactive interest for the last 5 months. All told, she owes $1,200 within the next week, or they have threatened to repossess her car.
Does that sound normal?
the interest hike does sound normal if her credit is not as good as her hubby's but I dunno about the retroactive 5 months. Can she shop around for a better loan from another place? I made my ex put our car loan in her name, i didn't want to be in any way liable if she started missing payments
Have the payments been made for the past 5 months? If those payments were made, I do not see why changing it now would do that. There should be a specific balance after the last payment. I assume she needs to finance the balance in her name. Either way it sucks. When I got divorced I simply wanted to change one credit card at a credit union in which I was the qualifying member into my name alone. I paid every bill for 17 years but all the sudden they acted as if I would be too stupid to make the payments. The account had no balance and had never carried a balance over even once. Fortunately, I ended up talking to a woman there who had been through the same thing, and she put it it through for me. I even had written authorization from my ex to remove his name from all the accounts there.
I have no idea how it works if they have no legal separation do ents that specify assets and responsibilities.
I can see the interest rate changing once the loan is in her name, but not retroactively. Don't know the law though.
It depends on her credit rating and her debt to income ratio. That will change once she goes the loan alone, and it would be a higher risk category loan, requiring new paperwork and probably retroactive interest since she probably doesn't qualify for the amount on her own.
Yeah the interest will go up if she has low income or bad credit. The retroactive junk sounds like garbage though.
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