Mississippi has highest rate of auto loan delinquency

TransUnion has recently released statistics about national auto loan delinquency rates. These rates are important for Mississippi consumers to consider because they are directly related to the repossession rate of automobiles.

Overall, the national auto loan delinquency rate is at a record low. This statistic is interesting in light of the fact that consumers are actually currently taking out bigger loans for automobiles. Apparently, even though they have more loans, consumers are paying back their auto loans more reliably.

The current auto loan delinquency rate is 0.36 percent. TransUnion predicts that as people continue to borrow more money for cars, this rate will likely increase to 0.37 percent at the end of 2013.

Although the country is seeing historically low auto delinquency rates, not all consumers are reliably paying off their auto loans. In fact, Mississippi is actually reported to have the highest rate of delinquent borrowers, with 0.88 percent of borrows past due on their loans.

There are host of reasons that a Mississippian may be past due on an automobile loan, including unemployment and other financial challenges. If maintaining possession of your vehicle is important, an individual cannot continue to overlook his or her car payments however.

Mississippi law entitles a creditor to repossession of a car if a purchaser fails to make loan payments. This may seem like a drastic remedy, but the law recognizes that a creditor has an interest in the vehicle during the loan payment period since the creditor provided the consumer with the ability to purchase the vehicle in installment payments.

The creditor is not the only one who can seek the protections of the law in an automobile transaction. The law also protects consumers. For example, the law requires that creditors disclose certain information when selling a vehicle on credit. If a creditor does not disclose such information, a consumer can sue to recover actual and other damages.

If faced with a situation of repossession, a Mississippi car purchaser should not simply give up. There may be deficiencies with the sale of the car that actually allow the consumer to retain possession of the vehicle and recover damages.

Source: The Gazette.com, "Car buyers borrowing more, paying off loans more reliably," George C. Ford, December 20, 2012.

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