Questions about Hardships / Repossessions / Bankruptcy

Deferments

We offer deferments to customers who are experiencing a hardship. The deferred payment will be placed at the end of the loan and will be due in conjunction with your final payment. You can apply for a deferment at the following link https://www.culoansource.com/form-deferment-request

Loan Modification

Loan modifications are a form of hardship assistance that reduces the amount of the monthly payment for the customer but extends the length of the contract. You may only make this request if you have paid regularly and on-time for 12 months and you can document financial hardship. You will need proof of employment, such as a pay stub, and proof of auto insurance, such as the declarations page from your policy. If you submit this form and meet the eligibility requirements, a member of the CULS team will contact you for further information and with instructions on how to proceed. The loan must be current with all outstanding fees, such as late fees, paid to receive a modification. A modification changes the terms of your loan contract and may affect GAP and Warranty coverage. Please consult your GAP and/or Warranty agreement. (Exceptions can be made and managements discretion) https://www.culoansource.com/forms-loan-modification-request-form

What is a voluntary surrender?

A scheduled surrender of the Vehicle is where the account holder is willing to surrender the vehicle and the Keys back to the lien holder/finance company.

If I am unable to continue my payments and want to surrender my unit, what should I do?

Please call our customer service number to discuss options. We would first make sure we have done everything in our power to assist in your hardship. But in the event, your vehicle is surrendered you will have 10 days to redeem it. After this time period it will proceed to be sold at auction. Once sold the proceeds from the sale will be applied to the balance of your loan. If the vehicle sales for more than that balance, then you would receive a refund. If there is still a balance remaining, you will be held responsible for the balance. You will be notified of the deficiency balance via mail after the unit has been sold.

How does a Voluntary Surrender affect me?

It is labeled as a Repossession on your credit reporting, it can stay on credit reporting until the statute of limitations expires in the contracted state.

Can I still drive the car until the scheduled pick up?

We recommend that you not drive the vehicle and park the vehicle at the pickup location.

Should I keep the insurance on the vehicle?

We recommend that you keep insurance on the vehicle until we pick the unit up, you are responsible for the vehicle until we get the vehicle.

If my car is repossessed, and I redeem the unit, will my repossession show on my credit?

If it is redeemed, the repossession is removed from the credit report.

Will it hurt my chances of getting another vehicle in the future?

This will depend solely on your credit worthiness at the time of the attempted purchase. Negative credit reporting most commonly affects ability, terms, and cost of future purchases.

Can I still make monthly payments if I don't sign a reaffirmation agreement?

Yes, but the payments do not report to the Credit Bureau Agencies.

Why can't I receive my statement? I didn't include you in my bankruptcy!

All debts listed in an active bankruptcy are covered under the Automatic Stay Under section 362 of the United States Bankruptcy Code, the stay begins at the moment the bankruptcy petition is filed unless a reaffirmation agreement is filed.

Are you going to come get my car if I don't sign a reaffirmation agreement?

No, you may retain and pay for the vehicle, but the account must be paid on time. Should the loan become severely delinquent it will be reviewed by management for further action.

When can my car be repossessed?

Once a Motion for Relief has been granted by the courts. If I don’t sign a reaffirmation agreement and my BK is discharged, do I still have to pay? Yes, you must continue to make monthly payments and keep full coverage insurance while the vehicle is I your possession.

If I surrender my vehicle or the vehicle is repossed, and my BK is discharged do I still owe the balance?

No, if the vehicle is surrendered or repossessed and there is a deficiency balance once the vehicle has been sold you are not responsible for the debt but if there is a non-filing party, they can be held liable for the balance.

Why can't I access my account on line?

Depending on which chapter of bankruptcy you filed, the status of your loan will determine if you are able to access your loan online. Should you need assist please call into the office an speak with the Bankruptcy Department.

What if my vehicle is sold for more than my outstanding balance?

CULS will have to verify with the trustee who the funds should be released to and funds will be distributed accordingly.

If I fall behind when will my car get repossessed?

We do everything in our power to keep our customer on the road. If you are experiencing a hardship, please call our customer service number to discuss the many options available to you. If, unfortunately you are not able to make your payments and the unit is repossessed.

If my car is repossessed what should I do?

You will have 10 days to redeem it. After this time period it will proceed to be sold at auction. Once sold the proceeds from the sale will be applied to the balance of your loan. If the vehicle sales for more than that balance, then you would receive a refund. If there is still a balance remaining, you will be held responsible for the balance.

What will be the financial requirements to redeem my vehicle?

We work diligently to avoid this outcome. But if a customer who has been repossessed is looking to redeem, they should be prepared to pay all past due balances and fee’s, all outstanding repossession fee’s and the next months payment. Management does hold the right to review this on a case by case basis.