It depends. If you paid it all upfront in cash for the life of the loan and you trade the car in early you might be entitled to a petite refund. If the gap insurance is included in the car payment then no. There is no refund at that time, because you are paying only for what you use.

## Is it legal for a Credit Union to request payment on a loan you got to purchase a car when they do not have the title for it?

## Is it better to obtain a loan from a credit union or a bank?

## Can a debtor be discharged from a credit union loan which he took out to pay his taxes?

“Discharge” applies to a debt being wiped out by the bankruptcy court. If all the requirements are met and approved by a bankruptcy judge, then yes, a debtor’s obligation can be discharged. If the debtor does not file or qualify to be granted a bankruptcy, then No, his debt will not be discharged, or forgiven. It needs to be paid.

## What formula do auto dealerships use for Gap insurance refunds?

Gap Insurance Refunds .

The reaction depends on the state where Gap was purchased. In many states the refund is calculated pro rata. This means if a cancel is requested in month 30 of a 60-month loan, 50% of the selling price would be refunded..

Perhaps the most popular refund calculation is rule-of-78s. This permits the Gap Insurer to earn more of the premium in the early stages of a loan. For example, in Rule-of-78s calculations the very first month of a 60-month loan is worth approximately Trio.28% of the overall price charged (this number would be only 1.66% if pro rata was used)..

Rule-of-78s is often used because it permits the Gap Insurer to more closely align the risk with the earning of premium. Gap exposure is higher early in the loan and decreases as payments are made.

## You have two auto loans with a credit union and wished to discharge one through bankruptcy and reaffirm on the other but the credit union says no Is this possible?

I work at a credit union, and there is no reason you cannot re-affirm that 2nd loan, I would tell you to contact, the borad in writing and explain your reasons to file and why only on one.

## When filing Chapter 7 is a car loan department discharged by your credit union?

An automobile loan is secured by the vehicle title, meaning that the lending institution has filed legal notice of interest in the vehicle. Even if you file chapter 7 bankrupcy, the lending institution can repo the car if you don’t make payments.

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## How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?

If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.

## How do you get your gap insurance refund?

Call the dealership where the gap was purchased.They can advise you. If they are self insured they should have the forms there.

## What is the lowest credit score for a credit union loan?

## Can a credit union garnish Social Security benefits for a default on a car loan in California?

No..

All SS benefits are protected by federal law and are exempt from garnishment by judgment creditors.

## How is a refund calculated on a precomputed loan?

The total amount of each payment is subtracted from the balance which includes the principal and finance charges (interest)..

A plain interest (interest bearing) account is one in which the balance includes only the principal amount and the interest calculated from payment date to payment date is subtracted from the total amount of the payment and the remainder of the payment is subtracted from the principal balance..

A precomputed account and a ordinary interest account with the same amount financed or principal balance, the same annual percentage rate and the same terms will have the same finance charge. If both accounts have payments made as contracted for the total term of the obligation, the finance charge will be the same for both accounts..

The differences inbetween the two accounts are in how payments to the accounts are actually made during the term..

Delinquency Charges : Both types of accounts can have delinquency charges imposed if payments are not received within usually10 days of the date the payment is due. On a elementary interest account you will also be paying interest for the days delinquent on a higher balance than the original total finance charge was computed, making you pay more finance charges than originally contracted..

If you were over Ten days late in making your payments each month on an account with a $Five,000 original unpaid balance with a 21% annual percentage rate for 24 months, you would pay $372.00 in delinquency charges on a precomputed account..

You would have paid the $372 00 delinquency charges plus extra interest (finance charges) on any unpaid delinquency charges and the higher principal balance due to the delinquency on a ordinary interest account..

Deferral Charges : Precomputed accounts can have a deferral charge imposed, if contracted for, on payments past due over Ten days. Deferral charges are based on the balance deferred times the annual percentage rate divided by 12..

Deferral charges are not permitted on elementary interest accounts. However, you would be paying a higher finance charge then originally contracted if your payments were delinquent or the lender permitted you to make an “interest only” payment..

As you can see from the example above, being delinquent in your payments can be very costly over the term of an account plus being delinquent is reported on your credit records and future credit may be hard to secure..

Prepaymentsin utter : When you prepay a plain interest account , you owe the principal balance plus interest accrued since the previous payment. There is no rebate. When you want to pay off a precomputed account ahead of your contractual obligation, you are entitled to a rebate of the unearned finance charge based on the sum of the balances known as the Rule of 78’s. The balance of a precomputed account includes the total finance for the total term of the contract. If it is prepaid in utter before the maturity date, the unearned finance charges are subtracted from the balance to arrive at the amount due at time of the prepayment in total..

The Rule of 78’s is so named because a hypothetical installment account with a term of 12 months has 78 units calculated by adding the numbers 1 plus Two plus Three through 12. To compute the Rule of 78’s decimal you take the number of months remaining in the term of the contract times that number plus 1. You divide that number by the number of months in the term times the term plus 1. The Rule of 78’s decimal is then taken times the finance charge to compute the rebate..

EXAMPLE:.

$Five,000.00 amount financed$1,166.32 finance charge24 payments of $256.9321% annual percentage rateDate made 1-10-02First payment due 2-10-02Date prepaid 11-11-02There are 11 months earned on the account (the creditor can take a utter months earnings for 1 day into the next month in this example) and 13 months unearned. You can compute the rebate as goes after:13 X 14 divided by 24 X 25 = 182 divided by 600 = .3033 Rule of 78’s decimal$1,166.32 X .3033 = $353.74The finance charge rebate would be $353.74..

The lender earned Sixty nine.67% of the total finance charge during the very first 11 months of the 24 month contract. Finance charges earned by the Rule of 78s are the highest for the very first months of the term because the balance of the amount financed is highest during that period..

You can look at the following chart to see that the earned finance charge would be $812.54 after 11 months..

A plain interest account with the same terms which was paid on the contracted due date each month and prepaid on 11/11/00 would have finance charges earned of $737.Ten, the unearned finance charge would be $429.22 (earning on for Ten thmonth plus one day’s interest) which is $75.48 less total finance charges then the precomputed account..

If the account had prepaid on 11/Ten/00 (exactly Ten months), the total finance charge on the precomputed account would have been $758.11 ($1,166.32-408.21). This is still $22.96 more then the plain interest earned finance charge of $735.15 ($1,166.32-431.17)..

From the examples given, you can see that if you make your payments as contracted each month and prepay your account, a elementary interest account will cost you less than a precomputed account..

If you do not pay your account in total before the maturity date and pay as contracted for the utter term of the account, there would be no difference in the cost inbetween a precomputed account and a elementary interest account. On the other mitt, if you are permanently delinquent on your payments, a ordinary interest account will result in higher finance charges..

A precomputed account is one in which the debt is voiced as a sum comprising the principal and the amount of the finance charge computed in advance..

The total amount of each payment is subtracted from the balance which includes the principal and finance charges (interest)..

A ordinary interest (interest bearing) account is one in which the balance includes only the principal amount and the interest calculated from payment date to payment date is subtracted from the total amount of the payment and the remainder of the payment is subtracted from the principal balance..

A precomputed account and a elementary interest account with the same amount financed or principal balance, the same annual percentage rate and the same terms will have the same finance charge. If both accounts have payments made as contracted for the total term of the obligation, the finance charge will be the same for both accounts..

The differences inbetween the two accounts are in how payments to the accounts are actually made during the term..

Delinquency Charges : Both types of accounts can have delinquency charges imposed if payments are not received within usually10 days of the date the payment is due. On a elementary interest account you will also be paying interest for the days delinquent on a higher balance than the original total finance charge was computed, making you pay more finance charges than originally contracted..

If you were over Ten days late in making your payments each month on an account with a $Five,000 original unpaid balance with a 21% annual percentage rate for 24 months, you would pay $372.00 in delinquency charges on a precomputed account..

You would have paid the $372 00 delinquency charges plus extra interest (finance charges) on any unpaid delinquency charges and the higher principal balance due to the delinquency on a elementary interest account..

Deferral Charges : Precomputed accounts can have a deferral charge imposed, if contracted for, on payments past due over Ten days. Deferral charges are based on the balance deferred times the annual percentage rate divided by 12..

Deferral charges are not permitted on plain interest accounts. However, you would be paying a higher finance charge then originally contracted if your payments were delinquent or the lender permitted you to make an “interest only” payment..

As you can see from the example above, being delinquent in your payments can be very costly over the term of an account plus being delinquent is reported on your credit records and future credit may be hard to secure..

Prepaymentsin utter : When you prepay a ordinary interest account , you owe the principal balance plus interest accrued since the previous payment. There is no rebate. When you want to pay off a precomputed account ahead of your contractual obligation, you are entitled to a rebate of the unearned finance charge based on the sum of the balances known as the Rule of 78’s. The balance of a precomputed account includes the total finance for the total term of the contract. If it is prepaid in utter before the maturity date, the unearned finance charges are subtracted from the balance to arrive at the amount due at time of the prepayment in utter..

The Rule of 78’s is so named because a hypothetical installment account with a term of 12 months has 78 units calculated by adding the numbers 1 plus Two plus Three through 12. To compute the Rule of 78’s decimal you take the number of months remaining in the term of the contract times that number plus 1. You divide that number by the number of months in the term times the term plus 1. The Rule of 78’s decimal is then taken times the finance charge to compute the rebate..

EXAMPLE:.

$Five,000.00 amount financed$1,166.32 finance charge24 payments of $256.9321% annual percentage rateDate made 1-10-02First payment due 2-10-02Date prepaid 11-11-02There are 11 months earned on the account (the creditor can take a total months earnings for 1 day into the next month in this example) and 13 months unearned. You can compute the rebate as goes after:13 X 14 divided by 24 X 25 = 182 divided by 600 = .3033 Rule of 78’s decimal$1,166.32 X .3033 = $353.74The finance charge rebate would be $353.74..

The lender earned Sixty nine.67% of the total finance charge during the very first 11 months of the 24 month contract. Finance charges earned by the Rule of 78s are the highest for the very first months of the term because the balance of the amount financed is highest during that period..

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You can look at the following chart to see that the earned finance charge would be $812.54 after 11 months..

A plain interest account with the same terms which was paid on the contracted due date each month and prepaid on 11/11/00 would have finance charges earned of $737.Ten, the unearned finance charge would be $429.22 (earning on for Ten thmonth plus one day’s interest) which is $75.48 less total finance charges then the precomputed account..

If the account had prepaid on 11/Ten/00 (exactly Ten months), the total finance charge on the precomputed account would have been $758.11 ($1,166.32-408.21). This is still $22.96 more then the ordinary interest earned finance charge of $735.15 ($1,166.32-431.17)..

From the examples given, you can see that if you make your payments as contracted each month and prepay your account, a plain interest account will cost you less than a precomputed account..

If you do not pay your account in total before the maturity date and pay as contracted for the total term of the account, there would be no difference in the cost inbetween a precomputed account and a elementary interest account. On the other forearm, if you are permanently delinquent on your payments, a plain interest account will result in higher finance charges.

## Does gap insurance cover the remainder of a loan from a voluntary reposession of a vehicle?

## How do you calculate your refund on 600.00 gap insurance if you paid your 6yr long off in Two years?

## Does putting your sudent loans into deferment hurt your credit?

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## If EIC earned income credit is more than refund can student loans take your taxes Bankruptcy and other agencies cannot take your tax refund when eic is greater in amount than that of the refund?

## Are you still covered by gap insurance if my loan is in default?

## Will gap insurance pay off the balance of your loan if your vehicle is totaled?

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## Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?

## Can you purchase GAP insurance from ford motor credit after you financial your vehicle?

## Can credit union hold title on car if car used as collateral and loan is default?

## Can credit card companies put a lien on a tax refund?

## Is a bank or credit union better for a car loan?

## Is there a specific school financial credit union for college government funded loans?

## It is better to get a brief term loan from a credit union or a payday loan establishment?

## Does Patelco Credit Union provide mortgage loans?

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