I had a repossession back in 1999 on a car that I defaulted on. I never heard a thing from the bank, a collection agency or any other soul. Now this debt was charged off and fell off my credit report last year.
Suddenly- about a month back- a collection agency is sending me a letter asking for what is more than what I remember my original loan being for- plus almost 150% in interest that they, themselves, have accrued.
They are threatening garnishment, legal action, and so forth.
The questions are this... Is the interest legal?
After a charge off and the debt has been wiped from my credit can they still collect?
What actions can they take against me, if any?
I am terrified of them either garnishing my wages and taking everything, or just harrassing my employer- what can I do?
2007-01-29 05:21:45 · 9 answers · asked by Doug M 2 in Business & Finance ➔ Credit
Sorry forgot to mention this is in missouri.
2007-01-29 05:32:46 · update #1
Your first step is to see if the Statute of Limitations for this debt has run out. Since this is a car payment, it will be considered a written contract. In many states it can be 6-10 years. So look at the link below.
Can they collect on a charged off debt? Yes. Charging it off is a bookkeeping term that they use to remove the debt from their records, but the debt itself is still collectible.
Can they charge interest? That depends on your contract, but I will bet it's worded to allow the interest.
You have the right to send the collection agent a demand to validate the debt. They will have to supply you with an exact accounting of what they claim you owe, and be able to prove it.
2007-01-29 05:30:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The debt is not 'uncollectible' after 4-6 years. If a company charged off your loan, no interest accrued with that company afterwards. However, a collection agency can charge you whatever they want. However, most companies are willing to reach a settlement with you and allow you to make a monthly payment. Making a small monthly payment on a reposession is a lot better than having up to 25% of your wages garnished. Contact the company asap and tell them you want to pay it back yourself my man.
I do have to say though, it is a bit strange it is not reporting anymore but they are harassing you about it. I would definitely investigate that further. Check out the legitimacy of this collection agency.
2007-01-29 05:47:41 · answer #2 · answered by Cynthia S 4 · 0⤊ 1⤋
Hi well here it goes I'm cutting right to the chase here. What I did was I went to a real estate mortgage broker what he did was pull all three credit reports but he requested for a report attached to each credit report from all three firms that in turn researched my credit report and gave a view of what my problem was and what was needed to correct it so this cost me 23 bucks! nothing more the broker was nice enough to go over everything for about 45 to 60 mins no extra charge he explained everything to me including the research results and even told me there was a move to raise credit scores higher as a bar for approval for refi and home loans etc, YOU can do the same thing or go to a credit counselor for advice there are non-profits out there and some fee based ones those are the ones you have to watch out for because the for profit ones are often paid by the creditors as well and even some non-profits are set-up as stand alones by the creditors! so do your research it is not uncommon for a collection action to start up no matter on a charge off or not. Charge offs are supposed tax write offs as a loss and YET they can STILL collect on that debt a loophole in the law if you ask me a double profiteering motive I hope I'm wrong but I doubt it. I hope this helps you somewhat take care I wish there was a mechanism for follow-ups to see how you handled this issue?.
2007-01-29 06:06:38 · answer #3 · answered by domino65 2 · 0⤊ 0⤋
A collection agency is a go-between from you to the company who issued your loan. When the collection agency collects the debt, they in turn pay the creditor off (keeping a percentage of the money, which is how they turn a profit).
I would contact the company/bank that issued your original loan and verify that the loan has been paid in full. If it has, then the collection agency is trying to collect money from you that they aren't entitled to.
2007-01-29 07:59:05 · answer #4 · answered by LolaCorolla 7 · 0⤊ 0⤋
The debt is uncollectable after either 4 or 6 years, depending upon what state you live in. Send this collection agency the following letter:
To Whom it may concern:
I have been contacted by your company about a debt you allege I owe. I am instructing you not to contact me further in connection with this debt. Under the Fair Debt Collection Practices Act, a federal law, you may not contact me further once I have notified you not to do so.
Sincerely,
If they contact you after that, sue them!
They also under the Fair Debt Collection Practices Act, cannot contact your employer, or ding your credit.
STOP WORRYING!!
2007-01-29 05:31:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You need to have them prove that the debt is yours and inform them that to date, you have not been contacted regarding monies due. If they can't prove that they contacted you, then it's unfair debt collection to charge you interest. Sounds like zombie debt to me. The initial collections agency sold it to another agency after it fell of your report, so it's "rising from the dead" so to speak, which is also an unfair debt collection practice, though this particular stipulation may vary by state.
2007-01-29 05:59:19 · answer #6 · answered by sovereign_carrie 5 · 0⤊ 0⤋
You really need to sit down and work out your budget to allow for a reasonable payment plan. As long as you show you're making effort, it's unlikely they'll procede to garnishment.
Maybe you have a friend or family member who can help you out of the jam or maybe you can borrow enough money to get a settlement?
2007-01-29 13:01:27 · answer #7 · answered by siren381 2 · 0⤊ 0⤋
you would want to seem up that FDCPA reference earlier you employ that template. those letters you received from the sequence organizations probable totally cover the FDCPA validation criteria. truly, the interest ought to contain the call of the orginal creditor, quantity, dates, and notices of your correct to dispute. you would possibly want to wish to re-evaluate any suggestion to procure from even with "credit specialist" website offered that sort letter. you recognize the charges are yours. do not play the validation sport. that's probable to reason you many extra issues. The creditors would merely sue. CatDad gave you some strong suggestion about saving up and making contract can provide one after the other. once you write those contract provide letters, use your own words. do not position self belief in a form letter.
2016-12-03 04:53:59 · answer #8 · answered by Anonymous · 0⤊ 0⤋
the statue of limitation is 5yrs in most states send them a cease and desist letter certified.
2007-02-01 10:01:35 · answer #9 · answered by rgdzero 1 · 0⤊ 0⤋