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"Can a lender cancel a car loan? "
I've heard of student loan cancellations, but does this concept apply to financed cars?
Jim Donaher · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Yes, a lender can cancel a car loan. A loan cancellation is uncommon, but it can be very disruptive. The most common reason for cancellation is that the borrower has failed to make their payments. This is usually accompanied by repossession of the car.
There are also instances where a car loan can be canceled because a bank has gone into insolvency or been taken over by another bank.
“
View full answer
- Gregory R.
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