Vehicle Loan FAQs

If you have an auto loan with Bay Federal, you’ll need to obtain written consent from us first. Bay Federal may agree (for a limited period) if all the following conditions are met:

  1. The travel period will be less than 60 days.
  2. The loan is not past due and the member is in good standing with the Credit Union.
  3. The auto is adequately insured (not lender-placed) and covers travel to other countries (members may need to purchase separate or extended insurance plans).
  4. The member must have made at least three on-time monthly payments prior to the request.
  5. The DMV registration must be current and show Bay Federal Credit Union as the lienholder. 

Complete the Request to Take Vehicle Outside of the US form and bring it to any branch or mail it to Bay Federal Credit Union, Attention: Loan Servicing, 3333 Clares Street, Capitola, CA 95010.

You may be eligible to change your loan due date by completing the Due Date Change Request Form.

Eligibility is based on the following factors:

  • Your account may not be past due.
  • You may not have any unpaid charges.
  • You must have made at least one regularly scheduled payment.
  • The requested payment due date must be in the same month as the existing payment due date.

Due date changes will not be approved more than once per year.

Note: Changes to the due date may change your loans scheduled payoff date and increase the total interest paid over the loan period.

If you receive an insurance check made payable to Bay Federal and yourself, you must submit it to Bay Federal for review and endorsement.

  • If the amount is less than $5,000 and your account is not past due, simply bring the check to any branch for endorsement.
  • If the total amount is $5,001-$9,999, bring your insurance documents and the check to any branch for endorsement.
  • If the repairs will cost $10,000 or more, please bring the check, insurance documents, and repair shop documents to any branch for review. The repairs must be completed by a licensed and qualified repair shop, and Bay Federal will pay the repair shop directly.

Note: If your loan is past due, you will need to bring the account current before any funds will be released to you for repairs.

Members in good standing may be eligible to skip a month’s auto payment for a small fee of $30.

Learn about skipping a loan payment »

If you are experiencing financial difficulties, you may qualify for a deferral or reduced loan payment through Bay Federal’s Consumer Preservation Program.

To qualify, you must:

  • Have made a minimum of 12 payments to the Credit Union on your auto loan.
  • Have sufficient income to qualify for relief.

Note: All borrowers and co-borrowers must sign the Consumer Preservation Program Application and submit supporting income and hardship documentation to Loss Mitigation for review. 

If you have any questions contact Loss Mitigation at 831.479.6000, ext 124.  

If you have a vehicle loan, you must maintain full coverage insurance. Insurance policies must include:

  1. A maximum deductible of $1,000 for collision and comprehensive coverage.
  2. Bay Federal Credit Union listed as lien-holder/loss payee.

You may submit your insurance policy by doing one of the following:

  • Uploading a copy at
  • Relaying your information over the phone at 1.800.998.0652.
  • Mailing a copy of the declaration page to Bay Federal Credit Union (ISAOA/ATIMA), P.O. Box 2086, Carmel, IN 46082.
  • Bring a copy of the declaration page to any Bay Federal branch.

If you fail to provide the required proof of insurance, Bay Federal may purchase insurance on your behalf.

Note: Lender purchased insurance may cover only the lesser of the lender’s interest in the collateral (the loan balance), or the value of the collateral and will not provide any public liability or property damage indemnification. The amount of any lender placed policy will increase your overall loan balance, total interest charged, and could cause monthly payment increases.

You may be able to purchase GAP Insurance on eligible vehicle loans that have not been declared a total loss. 

If you purchased a GAP waiver from Bay Federal and wish to cancel your coverage and receive a refund of your GAP fee, you must do so within sixty (60) days from the contract date.

To get started, call us at 831.479.6000.

Note: Canceling the GAP waiver will not lower your monthly auto payment, and if you refinance your loan, your GAP coverage terminates.

Please call us at 831.479.6000 to discuss whether debt protection cancellation is an option for you.

If you wish to cancel your coverage and a refund of fees, you must do so within sixty (60) days from the effective date of the debt protection.

Cancellation after sixty (60) days will end coverage, but previously charged fees will not be refunded.

Note: Canceling debt protection will not lower your monthly payment, and the payoff schedule of the loan may accelerate. Once debt protection is cancelled, it cannot be reinstated.

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