CFPB Auto Loan Payment Options


On Feb. 12, CFPB issued guidance on auto loan payment options.


  • Auto loan lender may have options to avoid falling behind during financial hardship.
  • Missing Required Payments
  • A temporary financial burden—such as a job loss, or medical emergency, or car repair—could cause a borrower to fall behind on his or her auto loan payments.
  • Missing payments can have significant impact on your finances, these include negative credit reporting, increased fees on your loan, and repossession of your vehicle.
  • If you think you may fall behind on auto loan, call lender and explain your situation.
  • Contact Lender
  • The sooner you contact your lender, the more choices lender may be able to offer you.
  • It is often more expensive for a lender to repossess your car than to work with you.
  • Working with lender demonstrates a good-faith effort on your part to repay your debt.
  • There possibly are extra costs to the payment options that auto loan lender offers.
  • Payment Plan, Refinancing
  • Ask your lender to change the date that your auto loan payment is due each month.
  • Request a payment plan that will help you catch up and repay missed payments.
  • Payment extension allows deferring some monthly payments, thus providing a brief break for borrowers suffering unexpected financial hardships or a natural disaster.
  • Refinancing your auto loan through your auto lender or another lender might allow you to get a lower interest rate which would reduce the size of your auto loan payment.
  • A longer loan term would lower your monthly payments to a more affordable level.
  • If practical, should consider trading in your current vehicle for more affordable one.

Regulators CFPB
Entity Types Bank; CNSM; Thrift
Reference PR 2/12/2020
Functions Client Money; Financial
Countries United States of America
Products Banking; Loan; Payments
Regions Am
Rule Type Guidance
Rule Date 2/12/2020
Effective Date 2/12/2020
Rule Id 71824
Linked to N/A
Reg. Last Update 2/12/2020
Report Section US Consumer

Last substantive update on 02/13/2020