Is it legal for a auto finance company to keep charging interest after car is repossessed?

Ask a lawyer in your state.

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Is it legal for a auto finance company to keep charging interest after car is repossessed?

yes. they will sell it, and any balance left you still owe..

Is it legal for a auto finance company to keep charging interest after car is repossessed?

Reposession

A creditor with whom a debtor has a written contract, which includes an agreement to repay a loan for the purchase of certain property, has the right to take back, or repossess, the property when the debtor falls behind in the loan payments. Generally, repossessions occur where the purchaser of a vehicle fails to make payments on the car note. The contract gives the bank or company that financed the vehicle the right to seize it from the purchaser.

SIDEBAR: The property is the collateral, and the creditor閳ユ獨 right to take it is the security interest.

TIP: Failing to make payments on a note or loan puts the debtor into default. When default occurs, the creditor can repossess the collateral.

How many payments do I have to miss before I have defaulted?

Depending on the loan, one missed payment may be considered a default, although usually, the creditor does not act until the payments are several months overdue.

I have been making partial payments every month on my car note. Am I still in default?

Yes. Partial payments are equivalent to no payments at all under a default provision. Although you will be credited for making the payments, you are still in default.

TIP: Consistent late payments, although the full amount, can also put the debtor into default.

SIDEBAR: Creditors who consistently have accepted partial or late payments from a debtor may have waived their right to repossess because they ignored the default for a period of time.

I have made all my car payments but my vehicle is still being repossessed because I never got auto insurance. Can the bank take my car?

Yes. You have defaulted on the loan by not taking out auto insurance. Defaults can occur for reasons other than missed, late or partial payments. For example, most car financing companies and banks require purchasers to obtain auto insurance. If you fail to get the insurance, you defaulted under the contract.

Is it legal for a auto finance company to keep charging interest after car is repossessed?

yes ,the interest is charged on the loan, until that is payed or the car is sold at auction the interest will continue. Once the car is sold then the interest will stop and the owner will be billed for the outstanding balance, the difference between what is owed and what the car sold for at auction. If that balance is not paid it will be sent to collection and then the harassing phone calls start.