Banking Question

Winuser · Apr 1, 2023

I have a car loan from a bank that I don't have a bank account with so I won't or I think I won't get any notices from them. I'm one who would prefer to pay my bills either online or in person. Yesterday I went to the closet bank branch to make my payment and found it was closed with no signs on the back about why. I went to another branch and it was open and doing business as usual. With the recent news about banks abruptly closing this got me thinking. If the bank had gone out of business and I couldn't make my payment, (It is due on the 5th) would that affect my credit score or would I be Ok until after I was notified on what to do?

badrobot · Apr 1, 2023

Winuser said:
I have a car loan from a bank that I don't have a bank account with so I won't or I think I won't get any notices from them. I'm one who would prefer to pay my bills either online or in person. Yesterday I went to the closet bank branch to make my payment and found it was closed with no signs on the back about why. I went to another branch and it was open and doing bussiness as usual. With the recent news about banks abruptly closing this got me thinking. If the bank had gone out of bussiness and I couldn't make my payment, (It is due on the 5th) would that affect my credit score or would I be Ok until after I was notified on what to do?

I don't think the effect will be real time if it does affect your credit score at all. There will be notices and warnings before it reflects back to you.

jimbo45 · Apr 3, 2023

Winuser said:
I have a car loan from a bank that I don't have a bank account with so I won't or I think I won't get any notices from them. I'm one who would prefer to pay my bills either online or in person. Yesterday I went to the closet bank branch to make my payment and found it was closed with no signs on the back about why. I went to another branch and it was open and doing business as usual. With the recent news about banks abruptly closing this got me thinking. If the bank had gone out of business and I couldn't make my payment, (It is due on the 5th) would that affect my credit score or would I be Ok until after I was notified on what to do?

Hi there

@Winuser

Credit reference agencies are more secretive than the CIA, NSA, FBI, MI6, Mosad, KGB, Mukhabbarat , Duexieme bureau or any other "govt secret" organisation you can think of on their scoring systems so the only rule I can suggest is NEVER EVER pay a loan late -- don't miss a payment by even ONE DAY.

If a bank goes out of business -- more likely in the USA than elsewhere due to the nature of "Retail Banking" in the USA and State laws your loans are still payable "unfortunately for those with mortgages hoping to get a Free property" as probably some scumbag company will have purchased the outstanding debts for "cents on the dollar" so you will still be liable.

The fun is that IF these scumbag companies who have purchased the loan for peanuts you can also have a go at this: Then you might be able to get a big reduction of your debt-- after all if you owe say 5,000 USD and the scumbags bought the loan for 50 USD then 1,000 USD is still a profit for them and a saving for you --win-win --but initially all of them say no -- so just keep at it - they cave in soon enough -- court cases etc really eat into their profit margins.

If you DO have trouble paying on time because of events outside your control then always check credit agencies -- you have in most jurisdictions the ability to get a full credit report for a minimal fee - and you can send a dispute. If all else fails get a S.A.R or equivalent (Subject action request) from anybody who thinks you owe them money. They have in most cases up to 40 days to respond (in again most jurisdictions) during which time no interest can be added, bailiff's summoned, court cases started or anything added to credit files.

Banks and the whole financial sector these days (and I am by no means any sort of Socialist) is a rotten stinking pile of garbage which gives decent capitalism a really bad name. -- Over to the legislators now !! -- BUT DO CHECK CREDIT REFERENCE -- don't ignore.

Added -- If the organisation fails to send you the S.A.R you've requested within the (usually) 40 day period --then the WHOLE debt is cancelled.

I'm quite good on "Consumer debt" even though I'm an Engineer. While working in the UK (Pre Brexit) I've helped stave off unruly debt collectors seizing people's property in the UK when stressed people have had problems paying their "Council Tax" --?? -- property tax / city / state tax equiv on time and some of those bailiff's are quite nasty School boy bully playground types who failed to get in to the Police or Military and who just like beating up vulnerable people -- but large Nordic men are often more than a match for these thuggy bullies.

For UK people -- only legally recognized Court appointed Bailiff's have rights -- many councils operate "Enforcement agents" who have ZERO rights. So check first they are valid accredited Couty appointed Bailiff's and not mere Debt Collectors and if not proper Bailiff's give them the famous "Churchill fingers". !!

In any case NEVER let these people in of any sort unless there is a Valid Court order -- and ALWAYS ask for ID and get them to pass it through window / letter box etc -- insist on a physical examination -- if it's just an "enforcement agent" keep the ID and tell them again to F.O !!!! - and if they complain just ring the Police -- they are trespassing !!!!

Of course debts should be paid but circumstances change and both debtors and creditors need to realize that as circumstances change (often not at the debtors fault) compromise is the best way forward for all sides, not thugs and bulleying -- surely in C21 we've advanced beyond the days of Loan sharks and the Mafia,.

Cheers
jimbo