What Happens When You Default on a Car Loan Where

question 53

Multiple Choice

What happens when you default on a car loan where your Title is held as collateral?

• A)You damage your credit history but you keep the car.
• B)You lose the car and damage your credit history.
• C)You face liability under the deficiency payments clause.
• D)Only choices B and C are correct.
• E)All of the above choices are correct.

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Definitions:

Service Fee

A charge for the provision of a service, often added to the base cost of the service being provided.

Emotional Distress

A psychological response to an event or experience that causes anxiety, sadness, or trauma.

Adjustment Message

Communication designed to inform about alterations in services, policies, or agreements, often aiming to resolve issues or update stakeholders.

Apology

An expression of regret or sorrow for having wronged someone, usually accompanied by an attempt to make amends for the actions.