Achi news desk-
An Ontario man said when he went to get into his car after work he was shocked when it wasn’t there and thought it had been stolen.
“I was scared, I was worried and I was stressed. I saw an empty space where my car was supposed to be and I didn’t know what to do,” said Jeff Pierre of Markham, Ont.
Pierre has a 2018 Hyundai Elantra and last year the car needed brakes, tires and other repairs. The auto shop he went to said he could pay for the repairs with loans which came to $4,909 and he agreed.
Pierre said he did not want to borrow the purchase money as he felt he had no choice with a baby on the way.
“I didn’t have the money to be able to fix the car and I needed the car to take my wife to work and I need the car to get to work as well,” said Pierre.
Pierre took out the loans with Wippy, a company that works with car shops providing loans to consumers for automotive repairs, tires and rims.
When Pierre missed two payments, Wippy repossessed his car and was told if he wanted it back he had to pay $9,708, the amount of the loan plus interest and other fees.
“At least give me a chance to repay the remaining balance, because nobody wants their car repossessed,” said Pierre.
A Wippy spokesperson told CTV News Toronto: “Repossession is always a last resort for us, and we understand the emotional and financial impact it can have on individuals and families. We use all possible avenues to avoid such situations, including several attempts to contact customers and arrange alternative payment arrangements.”
“However, when all efforts fail, we must take appropriate steps to recover debts owed. Although we sympathize with the challenges that Mr. Pierre faces them, it is important to recognize that these costs are incurred as a result of the situation, and that they are part of the overall process of debt recovery.”
A Wippy spokesperson also told CTV News: “It’s important to note that our company offers various options for different financial needs…Some of our plans offer a 0% interest rate if payments are made on time. However, in the event of default, a default rate may apply…We do not set an interest rate based on the customer’s credit rating, the customer can choose any of our plans ranging from 0% to 25.95 %.”
Meanwhile, credit counseling services tell CTV News they are receiving more calls from people whose cars are being repossessed because of their financial situations.
“Certainly during this time of inflation and people struggling to make ends meet we are hearing more about these experiences with people calling and their stories are often heartbreaking,” said Becky Western-Macfadyen, financial training manager with Credit Canada.
Western-Macfadyen said if your car is repossessed, it will have a dramatic effect on your credit standing and credit score, which will take years to recover.
“A repossession will stay on your record for seven years, whether it’s a voluntary or involuntary repossession. If your vehicle is repossessed it will also make it harder for you to qualify for a car loan in the future,” he said.
Pierre also has an outstanding bank loan on the car, but says there is no way he can pay the $9,708 he owes for the repairs which means the car will likely be sold to pay it off’ the bill.
“I can’t pay that lump sum in one payment. It’s not possible for me,” said Pierre.
If you are having financial problems and are going to miss a loan payment it is best to call the lender in advance to see if they will work with you as you may be able to avoid repossession of your car.
