A truck was re-possessed over two years ago. The overdue payments were caught up. The original financer has sold the balanced owed on the truck to a collection agency and now they are trying to collect it. Can they do this?
2007-03-27 03:16:32 · 5 answers · asked by ? 6 in Politics & Government ➔ Law & Ethics
so youguys are saying that even though the payments were made and the truck was put back on their lot and sold the collection agency is still owed the balance?
2007-03-27 04:01:40 · update #1
Very legal.
Any money still owed on the balance of the loan after payments are caught up and the sale of the vehicle is still the responsibility of the debtor. The bank does not have to lose money because you failed to pay your debts. The repossesion is to mitigate their damages - they sell the vehicle to recoup some of their money, but you still owe the balance.
2007-03-27 03:28:00 · answer #1 · answered by Susie D 6 · 0⤊ 0⤋
yes they can.... and they can put it on your credit report... just make sure to keep receipts and contact the original lender and let them know you want the report updated to reflect the payments made. also contact the 3 main credit bureaus and contest the debt if its not made current.
Also, contact the original lender to find out how much the truck went for to a dealer or wholesaler as that is money you don't owe!!!
Thats the reason sooo many people think a bad debt is only on your credit for 7 years.. when in reality the debt is sold and when you don't pay on collections the same debt is put on your credit usually within 2 years of the first time it goes on and you have this same debt on your credit for 9-10 years.... and its alll legal....however the next collection company to buy your bad debt cant put it on your credit...
It's better to pay your debts and when have probs just contact your creditor and work out an arrangement to get caught up... save yourself a whole lot of hassle...
2007-03-27 10:26:41 · answer #2 · answered by lisa n florida 3 · 0⤊ 0⤋
Absolutely. When someone owes you money, that debt is an asset to you, and you can sell it because it has value.
Debts are sold all of the time. In this case, the financier likely sold the debt to a collection agency because they thought they'd never see a dime, and the collection agency bought the debt for pennies on the dollar.
2007-03-27 10:21:58 · answer #3 · answered by Teekno 7 · 0⤊ 0⤋
I thought that repossession meant that they took the vehicle back to cover the payments. There wouldn't be any debt to collect as they have the vehicle.
2007-03-27 10:20:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes. That's standard procedure in all 50 staes. It's legal. Sux, but legal.
2007-03-27 10:21:00 · answer #5 · answered by dwforce 3 · 0⤊ 0⤋