6. YOUR RIGHTS IF YOU HAVE PAID LATE, MISSED PAYMENTS, OR HAD
YOUR VEHICLE REPOSSESSED

The Auto Sales Finance Act limits what a lender can do if a buyer falls behind on payments and when the lender repossesses their vehicle.

EXTENSIONS GRANTED BY THE LENDER: A lender doesn't have to agree to extend/defer any payments but IF they do they can NOT charge you for this unless you agree to it in writing. The lender may not charge more than an ADDITIONAL one percent (1 %) interest on the extended/deferred payments if the payment schedule was determined on a Precomputed Basis (such as "Sum of Digits"/"Rule of '78's) OR $25.00 or 10% of the outstanding balance if the payment schedule was calculated on the Simple Interest Basis.

REPOSSESSION: If your vehicle has been repossessed/surrendered the lender must notify you in writing that you have a right to reinstate the contract within 60 days of the repossession/surrender. The notice must itemize the deliquency and related collection/repossession costs and allow you 15 days to pay and extend that another 10 days if you request it in writing using a blank form the lender must include with the notice. You must also be notified that fail to redeem the loan will result in the vehicle being sold and that you can be held liable for any deficiency. If you pay the amount that is demanded in the notice the lender must return your car to you. NOTE: You are allowed to redeem the vehicle after repossession only ONCE in a year or TWICE during the loan.

HOW CO-SIGNERS ARE AFFECTED: Any co-signer must notified in writing that they are just as responsible as the buyer in the event of default. A cosignor's full name and address must be on the contract. Any co-signor has the right to the same notices the buyer is and has the right to cure any deficiency in the loan. The lender is also allowed to contact a cosignor and inform them that they have granted an extension/deferral on the loan to the buyer. If you have a co-signed for a buyer MAKE SURE THE LENDER ALWAYS HAS YOUR CURRENT ADDRESS so you can be notified of any defeciency.