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The Car Was Repossessed, but the Debt Remains
Source: New York Times
The Car Was Repossessed, but the Debt Remains
By JESSICA SILVER-GREENBERG and MICHAEL CORKERY JUNE 18, 2017
More than a decade after Yvette Harris’s 1997 Mitsubishi was repossessed, she is still paying off her car loan.
She has no choice. Her auto lender took her to court and won the right to seize a portion of her income to cover her debt. The lender has so far been able to garnish $4,133 from her paychecks — a drain that at one point forced Ms. Harris, a single mother who lives in the Bronx, to go on public assistance to support her two sons.
“How am I still paying for a car I don’t have?” she asked.
For millions of Americans like Ms. Harris who have shaky credit and had to turn to subprime auto loans with high interest rates and hefty fees to buy a car, there is no getting out.
[font size=1]-snip-[/font]
The reason: Unable to recover the balance of the loans by repossessing and reselling the cars, some subprime lenders are aggressively suing borrowers to collect what remains — even 13 years later.
[font size=1]-snip-[/font]
By JESSICA SILVER-GREENBERG and MICHAEL CORKERY JUNE 18, 2017
More than a decade after Yvette Harris’s 1997 Mitsubishi was repossessed, she is still paying off her car loan.
She has no choice. Her auto lender took her to court and won the right to seize a portion of her income to cover her debt. The lender has so far been able to garnish $4,133 from her paychecks — a drain that at one point forced Ms. Harris, a single mother who lives in the Bronx, to go on public assistance to support her two sons.
“How am I still paying for a car I don’t have?” she asked.
For millions of Americans like Ms. Harris who have shaky credit and had to turn to subprime auto loans with high interest rates and hefty fees to buy a car, there is no getting out.
[font size=1]-snip-[/font]
The reason: Unable to recover the balance of the loans by repossessing and reselling the cars, some subprime lenders are aggressively suing borrowers to collect what remains — even 13 years later.
[font size=1]-snip-[/font]
Read more: https://www.nytimes.com/2017/06/18/business/dealbook/car-loan-subprime.html
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