Bridgecrest Loan Reinstatement: What You Need To Know

Bridgecrest is a loan company that finances and services car loans. The company has been accused of predatory lending practices and has received numerous complaints regarding its rigid loan terms and high-interest rates. If a customer defaults on their loan, Bridgecrest has the legal right to repossess their car. In some cases, Bridgecrest has been accused of committing unfair business practices by transferring repossessed vehicles to Las Vegas, requiring California consumers to travel out-of-state to reinstate their contracts. While Bridgecrest does offer reinstatement options, customers must act quickly to avoid additional fees and charges.

Bridgecrest reinstatement conditions

Bridgecrest offers loan reinstatement to its customers, but there are a few conditions and limitations to be aware of. Firstly, reinstatement is only an option if the loan has not yet been charged off or reached the legal date for auction listing. The reinstatement offer typically ends 90 days after the loan becomes past due, at which point the loan is considered charged off. Therefore, it is crucial to act promptly if you wish to reinstate your loan.

Once your vehicle has been repossessed, you have a 10-day window to reinstate your loan by paying the past-due balance and any associated fees, such as repossession fees. This 10-day period begins on the first business day after the repossession. It is important to note that the 10-day window is not a grace period, and you must take action within this timeframe to avoid losing your vehicle.

If you fail to reinstate your loan within the given timeframe, you will have to purchase the car with a cash payment or bid on it at auction. Bridgecrest will provide you with the date and details of the auction. They will also notify you if your vehicle is moved to an auction site, which could be in a different state, as has been the case for some California consumers.

To avoid complications, it is advisable to maintain regular payments on your Bridgecrest loan. The company's loan terms can be rigid, and their interest rates are among the highest in the industry. If you encounter financial hardship, consider contacting Bridgecrest to discuss alternative options or seek legal advice to understand your rights and options.

Repossession fees

If you have a loan with Bridgecrest and miss payments, they have the legal right to repossess your car. Bridgecrest offers reinstatement, but this is only valid if it's paid before the legal date they can list the car for auction. This is usually 10 calendar days, and the reinstatement offer ends once you reach the point where they can charge off your loan or account (90 days past due).

After your car has been repossessed, you will have to pay the repossession fee and your past due balance to get your car back. If you don't act before the charge-off date, you will have to buy the car with cash or bid on it at auction.

It's important to note that Bridgecrest has been accused of unfair business practices regarding post-repossession procedures. These include sending defective post-repossession notices and requiring consumers to pick up vehicles in a different state, which can be expensive and burdensome.

If you're facing repossession or dealing with its aftermath, it's advisable to consult a lawyer or a legal expert to understand your rights and options.

Loan refinancing

There are several types of refinancing options, and the choice of loan depends on the borrower's needs. Rate-and-term refinancing occurs when the original loan is paid off and replaced with a new loan agreement with a lower interest rate. This is the most common type of refinancing. Cash-outs are another option when the underlying asset that collateralises the loan has increased in value. This option involves withdrawing the value or equity in the asset in exchange for a higher loan amount and often a higher interest rate.

To refinance, a borrower must approach their existing lender or a new one and complete a new loan application. The lender will then re-evaluate the borrower's credit terms and financial situation, including an appraisal of the property. The refinance appraisal is crucial as it determines what options are available. For example, if the borrower wants to lower their mortgage payment, the value of the property could impact whether they can get rid of private mortgage insurance (PMI) or be eligible for a certain loan option.

The closing for a refinance is faster than for a home purchase. The people on the loan and title and a representative from the lender or title company attend the closing. At this stage, the loan details are finalised, and the loan documents are signed. The borrower also pays any closing costs that are not included in the loan. After closing, the borrower has a 3-day grace period to cancel the refinance if needed.

Interest rates

Bridgecrest has been accused of unfair business practices, including sending defective post-repossession notices and requiring customers to pick up repossessed vehicles in Las Vegas, resulting in additional expenses for California consumers. The company's loan terms are known for their rigidity, and customers have complained about paying more interest than expected. Bridgecrest's interest rates are considered among the highest, and they employ a simple interest model, charging a percentage on the remaining balance daily. This means that initial payments primarily cover interest charges, which are initially high due to the substantial loan balance.

To address this issue, customers can consider refinancing with a different lender at a lower APR. However, refinancing requires a good credit score to access favourable interest rates. Alternatively, customers can sell their car, trade it for a more affordable model, or voluntarily return it. Responding to pending lawsuits and settling debts, even after being sued, are other options to explore.

Debt settlement

While debt settlement can provide much-needed financial relief, it is important to approach it with caution as it can have long-term credit score implications and impact the ability to borrow money in the future. To qualify for debt settlement, borrowers typically need a minimum amount of outstanding debt (approximately $7,500 for credit card debt), a documented financial hardship, and a history of missed payments.

The process of debt settlement typically involves the borrower saving up enough funds in a dedicated account to negotiate a lump-sum payment with the creditor. If successful, the remaining balance is forgiven, reducing the borrower's debt burden by 30% to 50% on average. This can be a financial lifeline for those struggling with high-interest debt, such as credit card debt, which has soared due to rising costs of living and economic concerns.

In the case of Bridgecrest, a lending company, debt settlement or reinstatement may be offered to borrowers whose cars have been repossessed or are at risk of repossession. Bridgecrest gives borrowers a 10-day window to pay their past-due balance and any associated fees before the car is legally listed for auction. After this point, borrowers may have to buy back their car with cash or bid on it at auction.

Frequently asked questions