'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man said when he went to get in his car after work he was shocked when it wasn’t there and he thought it had been stolen.
“I was scared, I was anxious and I was stressed out. I saw an empty space where my car was supposed to be and I didn't know what to do,” said Jeff Pierre of Markham, Ont.
Pierre has a 2018 Hyundai Elantra and last year the car needed new brakes, tires and other repairs. The auto shop that he went to said he could pay for the repairs with loans that came to $4,909 and he agreed.
Pierre said he didn’t want to borrow the money but felt he had no choice with a baby on the way.
"I didn't have the funds to be able to repair the car and I needed the car to take my wife to work and I need the car to get to work also,” Pierre said.
Pierre took out the loans with Wippy, a company that works with auto shops providing loans to consumers for automotive repairs, tires and rims.
When Pierre missed two payments, Wippy repossessed his car and he was told if he wanted to get it back he had to pay $9,708, which was the loan amount plus interest and other fees.
“At least give me the chance to repay the outstanding balance, because no one wants to have their car repossessed,” Pierre said.
A spokesperson for Wippy told CTV News Toronto: “Repossession is always a last resort for us, and we understand the emotional and financial impact it can have on individuals and families. We exhaust all possible avenues to avoid such situations, including multiple attempts to contact customers and arrange alternative payment arrangements.”
“However, when all efforts fail, we are obligated to take appropriate action to recover outstanding debts. While we empathize with the challenges Mr. Pierre is facing, it's important to acknowledge that these costs are incurred as a result of the situation, and are part of the overall process of debt recovery.”
The Wippy spokesperson also told CTV News: “It's important to note that our company offers various options to accommodate different financial needs...Some of our plans offer a 0% interest rate if payments are made on time. However, in the event of default, a default rate may apply...We do not assign an interest rate based on the customer's credit rating, the customer can choose any of our plans which range from 0% to 25.95%.”
Meanwhile, credit counselling services tell CTV News they are receiving more calls from people who are having their cars repossessed because of the financial situations they are in.
“Certainly during this time of inflation and people struggling to make ends meet we are hearing more about these experiences with people calling and their stories are often heartbreaking,” said Becky Western-Macfadyen, the manager of financial coaching with Credit Canada.
Western-Macfadyen said that if you do have your car repossessed it will have a dramatic impact on your credit rating and credit score, which will take years to improve.
“A repossession will stay on your record for seven years, and that’s whether it's a voluntary or an involuntary repossession. If your vehicle is repossessed it will also make it harder for you to qualify for a car loan in the future," she said.
Pierre also has an outstanding bank loan on the car, but says there is no way he can pay the $9,708 owing for the repairs meaning the car will likely be sold to pay the bill.
"I just can't pay that lump sum payment in one payment. It's just not possible for me” said Pierre.
If you're having financial issues and are going to miss a loan payment you're better off calling the lender in advance to see if they'll work with you as you may be able to avoid your car being repossessed.
CTVNews.ca Top Stories
Evacuation order issued for some Fort McMurray neighbourhoods as wildfire nears
Four Fort McMurray neighbourhoods were ordered to evacuate on Tuesday as a wildfire gets closer to the city.
Maximum payout for LifeLabs class-action drops from $150 estimate to $7.86
Canadian LifeLabs customers who filed an application for a class-action settlement began receiving their payments this week, though at a much lower amount than initially expected.
Sask. police seize 1.5M pieces of evidence, lay 60 more charges in child exploitation case
Saskatchewan RCMP have revealed that a historic sexual assault investigation has led to the discovery of alleged crimes against children dating back to 2005.
About 1,000 wildfires confirmed so far this year: Here's a quick look at the situation in Canada
Nearly 1,000 wildfires have burned across Canada so far this year. Here's an overview of the situation in Canada.
'Inappropriate' behaviour shuts down Dublin to New York City portal
Less than a week after two public sculptures featuring a livestream between Dublin, Ireland, and New York City debuted, 'inappropriate behaviour' in real-time interactions between people in the two cities has prompted a temporary shutdown.
American sought after 'So I raped you' Facebook message detained in France on 2021 warrant
An American accused of sexually assaulting a Pennsylvania college student in 2013 and later sending her a Facebook message that said, 'So I raped you,' has been detained in France after a three-year search.
Full List Are these Canada's best restaurants? Annual top 100 list revealed
The annual list of Canada's top restaurants in the country was just released and here are the places that made the 2024 cut.
Tavares scores in OT, rescues Canada from potential upset in 7-6 win over Austria
Captain John Tavares scored 15 seconds into overtime and saved his teammates some embarrassment as Canada held on for a 6-5 win over Austria on Tuesday at the world hockey championship.
BREAKING 'A remarkable time': After 8 years at Toronto Public Health, Dr. Eileen de Villa announces resignation
The doctor who led Toronto through the COVID-19 pandemic as the city’s top public health official is stepping down.