Ontario man on the hook for almost $7,000 after car repossessed for missing loan payments

An Ontario man said he was shocked when his car went missing and later learned it was repossessed after he missed auto loan fees that have mounted to almost $7,000.

“As soon as I went to the car to go to the gym, I saw my car was gone," said Toronto resident Harlie Marqueses.

Marqueses said he still owes $42,000 on a bank car loan for his 2019 IS 300 Lexus Sedan, but last year he got a flat tire and when he couldn’t afford a replacement, he took out a car repair loan.

Marqueses took out the loan with Wippy, a company that works with auto shops providing loans for car repairs. Marqueses has an auto repair loan for $2,892, but after missing two payments his car was repossessed a week ago.

“They told me the next day the car had been repossessed and you have to pay this much money,” said Marqueses.

Marqueses said he now owes the outstanding principal plus default charges, recovery expense and other fees which now totals $6,759.

"I got a call from someone and there was no caller ID, but they said don't worry your car is not stolen we have your car, it’s been repossessed,” said Marqueses.

BDO Debt Solutions, is a licensed Insolvency Trustee, which also has debt counsellors to help advise people having financial problems.

Francois Gilbert, a partner with BDO Debt Solutions, said generally companies don't want to repossess vehicles and would rather work with customers if they fall behind on their payments to avoid repossession.

Harlie Marqueses' car is seen in a photo before it was repossessed in Toronto. Gilbert said if it happens not only do you need to pay additional fees to get your car back, it can also hurt your credit rating.

“They really don't want to repossess a car, that's not what they do,” said Gilbert who added, “but if it happens it's obviously going to have a negative impact on your credit report and it's going to reduce your credit score and make it harder for you to get credit in the future."

CTV News reached out to Wippy and Liz Kaplan, the Vice President of Sales and Operations at Wippy said, “First and foremost, I want to express our sympathy for the challenges our customer is facing. Repossession is always our last resort, and we understand the impact it can have on individuals and their daily lives.”

“In regards to the balance outstanding, this customer has two payment plans with us which were both in default. Unfortunately he defaulted on this plan so we tried to assist and restructured the payment into monthly payments instead. “

“It is essential for us to strike a balance between our responsibility to protect our interests as a business and our commitment to helping customers overcome financial challenges. We take every opportunity to educate our customers about the importance of keeping their accounts in good standing and communicating to avoid such situations.”

Kaplan added, “In an effort to assist him, we have made an adjustment to the outstanding balance. As a goodwill gesture, we have decided to waive the storage fees and discount the payoff by approximately $1,700.00. As a result, the new total payment to satisfy both accounts is reduced to $5,000.00. Our goal is to continue to work with the customer, as we do with all of our customers, to find a solution that works for both parties.”

Marqueses said he's trying to borrow more money so he can pay off the auto loan and get his vehicle back as he said he can’t afford to be without it.

"I want my car back. I’ll try my best to make the payment," said Marqueses.

If you're having trouble making your payments, you may want to seek the help of a credit counseling service as they may be able to find other ways to deal with your debt to avoid having your vehicle repossessed.