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The auto lending market of the country is full of companies offering car loan modification service that sound extremely lucrative. Auto loan buyers often tend to get attracted towards these service providers. This is particularly true for people who are not able to adhere to their auto loan payment schedule. However, at Valley Auto Loans, we always suggest consumers to avoid such offers from that sketchy loan store down the street. We are well acquainted with all aspects of bad credit auto loans because we have been dealing with credit challenged car loan shoppers since a long time.
What is Car Loan Modification?
Car loan modification may sound like a great alternative for customers who have fallen behind their payment schedule, but the reality is far from that. According to the Federal Trade Commission, this is not at all a recommendable step. FTC has been involved over the years in many consumer issues relating to auto loans. In a recent press release from them, FTC sites the example of a case where the loan modification service providers instructed the consumer to discontinue paying the lender and claimed hefty upfront fees from him. This left the borrower in bad shape and severely increased risk of repossession of the car. In another case, according to FTC, the company collected $400 from the car owner and suggested her to stop paying the lender. Within a short time, the lender informed the borrower about the repossession of the car because she followed the instruction of the loan modification company.
Car Loan Modification and the FTC
According to FTC, the best idea for consumers who have fallen behind their payment schedule would be to get in touch with the lender and work out alternative arrangements. Every credit challenged consumer must understand that most of the high risk lending companies do not prefer going through the process of repossession of the vehicle. The FTC also recommends that every car owner must make it a point to stay away from companies that promise prevention of repossession or lowering of monthly payments.
To wind up this discussion, it is only fair to say that no matter how much trouble you are facing with loan payment, think twice before accepting any of these offers. Also, please remember that the Buy Here Pay Here car dealers are not the only way out for consumers who have been turned down for low FICO score. Be sure to check out any modification or sign and drive company you care considering and make sure they are listed as one of the BBB loan modification companies. Valley Auto Loans can be of great help here because we have been offered the highest level of lending service throughout the country for bad credit car shoppers. Filling out your application form at Valley Auto Loans could very well be the first step towards reestablishment of your credit.
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