Understanding Your Repossession Risk

If you have fallen behind on your Chrysler Capital loan payments, it is crucial to understand the company’s repossession policy and the potential consequences for failing to make timely payments. Chrysler Capital has the legal right to repossess your vehicle if you default on your loan agreement.

Steps to Take When Facing Repossession

If you are facing repossession, there are several steps you should take to minimize the impact on your finances and protect your vehicle:

Contact Chrysler Capital Immediately

• Reach out to Chrysler Capital’s customer service department as soon as possible to explain your situation.
• Provide documentation supporting your financial hardship, such as medical bills or proof of job loss.
• Request a payment plan that aligns with your current financial circumstances.

Submit a Cure Letter

• Chrysler Capital may send you a “cure letter” outlining the amount you need to pay to avoid repossession.
• Respond promptly to the cure letter and provide evidence of your financial recovery.
• Make the payment as soon as possible to reinstate your loan.

Consider Legal Assistance

• If you are unable to reach an agreement with Chrysler Capital, you may consider seeking legal advice.
• An attorney can guide you through the repossession process and help protect your rights.

Staying Informed and Responding Promptly

• Monitor your mail and email for any notices regarding your loan status or potential repossession proceedings.
• Respond promptly to all communications and provide any requested documentation.
• Keep yourself updated on the latest repossession laws and regulations in your state.

Repossession Avoidance Strategies

To avoid repossession, it is essential to:

• Make every effort to resume payments as soon as you are financially able.
• Contact Chrysler Capital to discuss payment options and seek assistance.
• Explore debt consolidation or credit counseling services to manage your finances.
• Consider refinancing your loan with a lower interest rate or longer repayment term.
• Sell the vehicle privately to pay off the loan balance and avoid repossession.

FAQ

I am 51 days behind on my Chrysler Capital payments. What is the repossession policy?

Once a customer falls behind on their payments, Chrysler Capital may initiate the repossession process. The specific timeframe for repossession can vary depending on state laws and individual circumstances.

I have now recovered from an illness and am financially able to resume payments. What should I do?

Contact Chrysler Capital immediately to explain your situation and demonstrate your ability to make payments. You should also submit documentation supporting your financial recovery.

A “cure letter” from Chrysler Capital demands payment of $1,668.82 within a certain timeframe. What is this?

A “cure letter” is a formal demand from Chrysler Capital for the customer to bring their account current by making a lump-sum payment within a specified time frame. Failure to comply with the cure letter may result in repossession.

I have already made a payment of $834.41 on February 16, 2023. Does this count towards the cure letter amount?

Yes, the payment of $834.41 made on February 16, 2023, should be applied towards the amount demanded in the cure letter. You should contact Chrysler Capital to confirm that the payment has been received and applied correctly.

I have set up a payment schedule for 16 months, beginning on February 16th. Will this prevent repossession?

Entering into a payment schedule may help prevent repossession, but it is not a guarantee. Chrysler Capital may still repossess the vehicle if you fail to make the scheduled payments or violate any other terms of the agreement.

I owe 16 more months on the loan. Can I refinance or extend the loan term?

You may be able to refinance or extend the loan term with Chrysler Capital or a third-party lender. This can help reduce your monthly payments and make them more manageable. However, it is important to discuss the options with Chrysler Capital and ensure that refinancing or extending the loan does not adversely affect your credit or result in additional fees.