Collection Agency, what can we do?

Question

I'm not sure if this question has been asked, if so sorry for the repeat. Here's the deal. My fiance and his ex bought a car together. She stopped making the payments, it got repoed. The collection agency is calling him. I have been talking to many different people at the same agency and getting different stories. What should I do to make sure that we pay only what we have to and not some other charge? Any advice as to how I go about handleing this whole thing?

Answer 1

This is the perfect example as to why you never purchase or cosign together. It works great for some but when it goes bad it is really bad. Try to speak to a manager at the agency and always write down the date, time and name of who you speak with. try to get them to put in writing any agreement made. He is legally liable since his name is on the debt. Talk to a lawyer about his legal rights in your state.

Answer 2

Well, the more involved you are the more they know that they have someone that really cares so you probably will get less of a deal, so maybe just back-off and let your fiance handle his problems?

If you must then 1st find out what they got for sale of the car and what amount was left on the loan, then how much is attorney fees and how much is interest.

If the amount is outrageous then consider all this; It will drop off his credit in 6 years. If he owns property they could lien it for up to 20 years (but that's the statute of limitations, 10 years then they can renew for 1 more time for another 10). If the car was in both their names then she might want it taken care of soon and for right now might be waiting and hoping he will pay it (because they will not likely split this debt) but in a year or so she might just pay it to get it off her credit. When making an offer NEVER offer more than a third to start with and NEVER pay for than 75% in the end because the negative effect that even a paid collections has on your credit is going to cost you down the road.

And finally, if she is a real loser or angry at him even if he pays then takes her to small claims court she will not likely ever pay him and it will just be a means for her to stay in your lives.

Answer 3

First your fiance wants to write a letter to the collection agencies with a cease and desist all communications. It gets confusing who has the collection. A lot of lenders will use multiple collection agencies at the same time or if one collection agency can't collect they sell it to other collection agencies. By the time you make a deal with one agency another agency has it. If you make a deal with a collection agency try to negotiate the amount owed down to say $0.30 to $0.50 on the dollar of what is owed. This will eliminate most of the interest that was built up over time and may even eliminate the collection agencies excessive fees. They will be happy to even get 50% but whatever deal you make get the satisfaction letter in writing immediately after the check clears your bank. This way if there is a dispute you have proof you paid for it.

Answer 4

first of all i am surprised anyone would be talking to you since your fiance and his ex are the ones that purchased the car....anyways, whomever is dealing with the collection agency find out what dollar amount they are trying to collect and if you're not happy with that number then make a counter offer for payoff, what ever is agreed upon get it in writing on their letterhead, make copies of all documentation, checks or cashier check or money order of payoff amount, once they receive payment keep in contact because you want doucumentation that payment has been received because you then want to follow up with the credit bureaus (all three) to show that this has been paid. Also, try to get the collection agency to agree to remove the repo all together from your credit history, they do have the power to do this because i have gone through it....the collection agency is the one that would contact the credit bureaus with that, but follow up on your end also and forward documentation yourself that this has been paid, that way you know it has been taken care of....if they don't remove it completly be prepared for it to remain on your credit report for 7-10 years.

Answer 5

Sorry to hear that, I have a friend who went through the same thing he is, except it was a house. Unfortuantly, because both of their names are on there and he never got his name off this, he is as much responsible as she is. He might have to pay the full amount. The point of a collection agency is to get payment in full from a person who they feel can pay. And looks like he can. He'll have to pay it and sue his ex girlfriend to get any money back! Sorry, it's messy work. But it will teach him a lesson to get his name off of things in a proper amount of time.

Answer 6

"Only what you have to" would be whatever the collection company agrees to. Your Fi could pay off the full amount to protect his credit and take the ex to court topay back half....

Or if the collection co will agree, pay just half and have his name taken off-- but i kinda doubt they'll do that.

Answer 7

As co-borrowers they are both equally responsible for the entire debt. If she will not pay, he is obligated to pay the entire debt and his option then is to sue her for default of her responsibility.

Answer 8

tell him to go take the car and catch up on the payments and try to get someone to refinance him so she could be taken off the loan.

Answer 9

ok find out how much is owed, pay half and that should be his part. Get an answering machine and let it answer the phone for you from there on out