How Do You Recover the Surplus Funds?
Depending on your state's laws, you might automatically get the surplus or you may need to take some steps to claim it. Some states require lenders to notify you that you're entitled to the surplus, while others allow them to keep it unless you take action. If necessary, you can usually get the steps for obtaining the surplus from your state's attorney general's office or your local legal assistance office.
In most cases, you'll have to take the following steps:
1. Review your loan agreement to find the surplus funds provision.
This will tell you how to get surplus proceeds from your lender.
2. Provide the lender with a written request for the surplus funds.
This request should include your name, address, phone number, and the VIN number of your car. You may also need to include a copy of something like your driver's license or state ID card, but don't send these documents unless the lender specifically requests them.
3. Be prepared to provide proof that you've paid off your auto loan.
Your lender may require you to provide a copy of your loan payoff statement or a canceled check showing that your loan was paid in full.
4. Wait to receive the surplus funds.
The lender may take some time to process your request and send you any surplus funds. The timing can vary depending on the state and the lender's policies.
