Can a charged off credit account be purchased and reopened sending you to collection years later?

Question

I voluntarily turned my car over to creditor, after numerous telephone calls with them. The car was in excellent shape and sold at auction. My credit report showed account closed, charged-off, {and it use to read paid by collateral, but that has since been removed} and was to drop off my report 06-2008, but 12-2006 it was purchased and shows open on my credit report and now i'm being hounded and they have put on my credit report that I owe them over $10,000. If it was previously closed, how can it bought or sold and if so then what happened to the proceeds of the sale of my vehicle? I dont know who bought it as was not present at auction. What do i do? They threaten garnishment of my wages and I truly feel I do not owe the balance of my note as I gave them the car and they sold it. The original creditor shows the account closed.

Answer 1

write back
send it certified return receipt letter
something like this..

Month Day, 2007


Dear _____________________:

This letter is being sent to you in response to a notice sent to me on Month Day, 2007
. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

Please provide me with the following:
• What the money you say I owe is for;
• Explain and show me how you calculated what you say I owe;
• Provide me with copies of any papers that show I agreed to pay what you say I owe;
• Please evidence proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature.
• Prove the Statute of Limitations/UCC has not expired on this account
• Show me that you are licensed to collect in my state.
• Provide me with your license numbers and Registered Agent

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
• Violation of the Fair Credit Reporting Act
• Violation of the Fair Debt Collection Practices Act
• Defamation of Character

If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that your offices make no telephone contact to me at my residence or my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records; any information obtained shall be used for that purpose.


Regards,

Answer 2

A charge-off is a bookkeeping process and also needed for tax write-offs. It doesn't mean they are clearing you of responsibility for paying the debt. If you negotiated a voluntary surrender or repo for the amount owed, that would have wiped out the debt. You will have to get some documentation from the original creditor if that is what you did.

There are many crooked debt collectors out there. Ask the new creditor - in writing, by certified mail, return receipt - to provide you with the original debt documents, the repossession and sale documents and proof that it is now the owner of the debt. Depending on your state law, that may end the collection efforts if they cannot come up with ALL of the documents.

Normally, debt default can stay on your credit report for up to 7 years, but you can renew the 7 year period by making a payment or offering to make a payment. You don't say when your last car payment was.

Answer 3

Unfortunately, many times selling a repossessed car at auction does not pay the entire balance, and you are still liable for the difference. You can fight them all you want, but if they can prove that the car was sold for less than the amount owed, you will lose.

Your best bet is to work with them and negotiate a resolution that will work for both of you. Ask them for a copy of the total owed at the time you turned it in and a copy of the sales receipt from the auction. By law, they are required to provide you with these if asked to show proof of the debt. Then try to work out a payment schedule that you can afford. They can only garnish wages if they go to court for a judgment, give you time to pay, then go back to court for the right to garnish. This is time and money they do not want to spend, no matter how much they threaten you with it. Also, most states do not allow more than 10-25 percent of your take home pay to be garnished, and you must be allowed to take home after garnishment at least 40 times minimum wage. Another point to negotiate with them is to make sure your credit report shows that your account is current with them after you start making payments. Get all this in a signed contract with them.

Answer 4

You made a mistake. At this point, I would seek legal advice. You certainly should not owe the entire balance, but just because you turned in the car, does not mean they don't have a right to be paid in full for any loss they incurred. What they have done is sell your account to someone else who has hunted you down and intends to collect. You should know that they likely paid as little as $100 for the rights to collect $10,000 from you. Get legal help or they will mess you up good in many ways.

Answer 5

You have to wait out the 7 year reporting period. They will age off 7-1/2 years from the date of first deficiency (default). Disputing them with the credit bureaus won't help. The accident may have been the other driver's fault and he was found liable for your medical bills, BUT, you signed the paperwork accepting responsibility for paying the medical providers. It was your responsibility to pay the medical providers and then be reimbursed by the other driver.

Answer 6

yes... this is how they recoup their money. They sell the debt to a collection agency. You should negotiate with them and pay it off, because they will get a judgment against you, freeze your accounts for 4 times the amount of the debt, and send letters to your place of business embarrassing you and further upsetting you.

Answer 7

You should dispute it. try searching for a website that will help you deal with debt scavengers who buy old debts for pennies on the dollar to make money

Answer 8

DRAGON FIRE STATED SOME VERY GOOD ADVICE! TAKE IT UP AND SEE WAHT HAPPENS!!! GOOD LUCK!!!