what happens when a bank sends your car loan to collections?

If your car gets reposesed the car will be sold at auction and you will be responsible for the difference. So you car will be gone and you may still owe some money to the bank. Say you owe the bank $20,000 and they sell it for $15,000 you are responsible for the $5,000. I have had more than one friend making payments on a car they no longer have. Collections does not mean reposesion. You will still have a chance to respond to the collections notice and settle with the bank. But do not ignor the collections notice. Call the bank and ask for help to settle the account.

if you dont make an effort to contact them or make a payment the car will be repossessed and possibly sold. You will have to still pay your loan though.

The repo man will be paying you a visit soon.

your car can get repossessed.