What should I do if I receive a collection letter after the car loan is overdue?

If the car loan is overdue, you can return the overdue notice first, and the others should be returned within the specified time. According to the regulations, if the borrower fails to use the loan according to the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.

What is the impact of overdue car loans?

1, resulting in bad credit records;

2. Generate penalty interest;

3. It's hard to get into the blacklist of credit information;

4. Causing court proceedings;

5. Execute the judgment.

Legal basis: Article 673 of the Civil Code of People's Republic of China (PRC).

If the borrower fails to use the loan according to the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.

Article 674

The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.

Article 675

The borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.