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Can the Lender Force You to Pay in Full or Reapply for the Loan?

Question: If your car has been repossessed and you offer to bring the loan current, can the lender force you to pay in full or reapply for the loan?

Answer: Under Illinois law, if your car is repossessed, has not been previously repossessed, and you have paid 30% of the total of payments (counting any down payment or tradein in both the numerator and the denominator), you have a right to bring the debt current ONCE by tendering the back payments and repossession expenses. The lender does not have the right to require you to reapply.

If you do not meet these conditions, the lender can insist on payment of the loan in full. If it wants to work out some reinstatement of the contract when it is not under any legal obligation to reinstate, it can impose reasonable conditions such as an evaluation of your credit.