Legal Question in Credit and Debt Law in Illinois

Auto Loan

I have an auto loan with roughly 34 months and $10,000 remaining. I just received the title from the State of Illinois and it is free and clear, they forgot to register the lien holder. What would happen if I just stopped paying the loan? Since there is no personal recourse would there be any ramifications? How much would that effect my 760 credit rating?


Asked on 12/01/08, 12:34 pm

2 Answers from Attorneys
Michael R. Nack Michael R. Nack, Attorney at Law

Re: Auto Loan

If you fail to pay your loan the creditor can report you to the credit bureaus and the creditor can sue you and obtain a judgment against you which will be available to all the credit bureaus and will hurt your credit.

Read more
Answered on 12/04/08, 11:25 pm
Motty Stone Law Offices of Motty Stone

Re: Auto Loan

If it was a clerical error that the State forgot to register the loan, then the lender will probably not have too much trouble re-attaching the lien. This is especially true if you knew that the lien should still be valid.

Even if the lender is unsuccessful re-attaching the lien, it can still notify credit agencies of your late payments or default. Such a report would have negative consequences for your credit.

Read more
Answered on 12/01/08, 1:04 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Illinois