OK, so the debt has been validated by the collection agency.?

Question

Now what? They showed me the papers containing the original contract I signed, and I know I should pay something, but the debt is 4 years old, they are re-aging the debt by adding their entry and the original creditor has not been omitted - so I have been double whammied (the coll. agency sent me a form letter and has never call me) AND when I called them, they want 70% of 6K, for a car that got repo'd because it was a lemon and I became unemployed.

Also: why do people get mad when people don't pay certain bills, when most creditors (not talking Mom, I mean huge credit card co.'s) pad their late fees, run up interest rates without notification, and are generally miserable people to deal with as soon as you commit the slightest misstep? And collection agencies buying debt for pennies on the dollar and charging 70-80%? It just seems over the top. It just seems that when the little guy falls on hard times - it's vicious, costly and timely.

Answer 1

Collection Agency: They will call, count on it. Your best bet is to make a deal with them. If they started at $4200 give them a sob story and tell them you can come up (assuming you can) with $2500 in cash and ask if they will take this as settlement. If they say yes then have them prepare the papers and don't give them the money until you have signed copies. Otherwise, they might take the $2500 and simply say that you made a partial payment.

As to your second paragraph: All these fees are required by law to be disclosed. The fact that you think they are "over the top" does not matter one bit. If you don't like the terms then don't do business with the company in question. Only Nancy Boys make deals with companies and then whine later about the terms. Either plan to live within the terms of the contract or don't enter it.

Answer 2

If the debt is in collections, you still might be able to go to a credit counselling service. Those folks can contact the company you owe the debt to and try to work out a payment plan. They'd then recall the debt from the collection agency. This is all a big MAYBE.
As for why they get upset......the debt is 4 YEARS OLD!! You've known for 4 years you had a debt and never made an effort to pay it. If you had been proactive on this, you would probably have been done with it by now, but you kept putting it off. These outfits are not charities.
When you didn't do anything, they are forced to make you do something to settle this debt. It sure sounds as if they've given you a break by waiting as long as they did.
I've been in debt myself, and I mean BIG debt. Lost a job, wife got ill and couldn't work for a couple of years. Kids moved back in.
It's been painful, but we're in much better shape now. I wish you well.

Answer 3

First of all, a major collection agency (I won't mention name)was recently ordered to pay millions in damages for doing what you described. (re-aging the debts by adding interest and claiming that that transaction extended the statute of limitations) This is false and against the Federal Satutes (Rico and FDCPA). A typical auto contract has a 4 year statute in California.(States vary -most are 4 ) That statute runs from your date of last payment. The collection agency may try to bait you to make a payment of something small like $20.00 and this will extend the statute. Do not make a small payment! If it is more than 4 years (or whatever your state statute is..in the state you signed the contract ) from the date of last payment or the date the vehicle was sold at auction in most states.
if it is past that date, they cannot sue you or threaten to sue. They can yell and scream and call you all they want until you give them written notice to stop, but they cannot sue. If they have added interest and claim it extends the statute, you can get damages of $1000.00 per instance I believe.

Answer 4

Just because they validated doesn't mean you have to pay it. It will do you no good to pay on a debt four years old, especially one for thousands of dollars. I would let the SOL expire and see if they come after you. If they sue, get a lawyer and make a deal at that time. Until then, send them a "cease and desist" letter which will stop all calls and mail.

And you're right, it's very unfair. Someone once said "banks only lend money to people who don't need it" and I think that's true. As soon as you make a mistake, you certainly pay for it.

Answer 5

You may wish to search for the statute of limitations for your state. Many states alleviate you of any liability after 4 or 5 years. It is possible that you may not have to pay at all. You should get competent legal advice to confirm your obligations.

This happens a lot. They can still try to pursue payment even if the statute of limitations expired. However, you can send them a cease and desist order that usually ends their collection attempts.

Answer 6

Yes, they are going to be asking you to pay curtain amount, and usually is a big amount. But see when you call or they call you make sure you say that you do want to pay but you don't have all the money, by law they have to work with you a payment plan, they will be rude but they still have to work with you. Your not denying to pay you just cant make the payments they want you to, so also by law they have to take any payments you can make. All they want is to get paid, so just tell them how much you can pay a month and they have to work with you. If they don't work with you, well ask for the name and badge # and tell them your going to write a letter saying that you do want to pay them back but cant make the amount they want and the person you spoke with wasn't being help full. That worked for me, And they reduced my interests.

Answer 7

companies are in business to make money not lose it to irresponsible people who can't manage their affairs properly. How would you like it if someone came into your house, took your tv for a while promising to bring it back but never does because it was raining or some other lousy excuse, you'll be pissed too at the lost of your thing like companies feel when you don't pay what you promised to take their things. if you can't afford it leave it be you don't deserve it then.