Posted on: 02nd Sep, 2009 08:14 am
Can the bank change the terms of an auto loan mid way through the loan? I have a 5 year auto loan and am three years into the loan. I am currently paying every two weeks. I recently received a letter from the bank stating that due implementation of federal regulations mandating significant changes in the way the bank administers their loans, the bank has changed the terms of my loan. They will now increase my payment and make it a one time per month payment (therefore increasing the amount of interest I pay).
Is this legal? Is the bank allowed to do this?
Is this legal? Is the bank allowed to do this?
This absolutely wrong
You can contest this
You can contest this
Hi dolcesugar!
Welcome to forums!
The banks cannot change the loan terms without any reason. However, if there has been a federal regulation regarding the terms of auto loan, then it could be a different issue altogether. You should call your lender and ask them to explain the reasons to you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The banks cannot change the loan terms without any reason. However, if there has been a federal regulation regarding the terms of auto loan, then it could be a different issue altogether. You should call your lender and ask them to explain the reasons to you.
Feel free to ask if you've further queries.
Sussane