In June of last year I was offered a settlement of $1500 from a Repo balance of about $7000. I end up paying $2800,'cause it was hard to come up with money in the short time they gave me. After paying the extra $1300 for a extension in time which was originally in April. I thought it was taking care of until August when a bill collector inform me that I still owed the balace of about $4200. The person who I had made the settlement with was nowhere to be found when I needed him to speak on my behalf. No one knew his whereabouts, when I called his office. They said he no longer worked there. The collection agency demanded that I pay them. I faxed paperwork to them showing drafts from my checking account to the company,but they said it was not enough info.and that I needed the form stating I was offfered a settlement. They will not leave me alone.
2007-04-06 19:54:11 · 7 answers · asked by kmuh21 1 in Business & Finance ➔ Credit
I have to agree, that collection agency stuck you big time.
That's why it is always best to do things in writing and never speak to them on the phone.
The poster who said that making a payment will re-set the clock is partial wrong. It actually depends on your state statutes if a payment re-sets the collecting SOL.
In many states it does not, in some it does.
The reporting SOL cannot be re-aged.
If you live in a state where a payment cannot re-set the collecting SOL and it has been 4 years or longer since the repo was sold, you are past the collecting SOL.
Repo's void the original contract and no longer fall under written accounts for the collecting SOL. Instead they fall under the UCC for a 4 year SOL.
While they can continue to hound you for the debt, but they cannot legally sue. And it would be wise to inform them the account is past the collecting SOL.
If you live in a state where a payment does re-set the collecting SOL, they can legally do anything it takes to collect. Unless you have it in writing from the first collection agency that what you paid would be considered payment "in full"
Send the collection agency a debt validation letter.
Send it certified mail return receipt (send all letters that way)
In the mean time, you could talk to an attorney and/or you can do some research on your own.
Click on my profile and click on the last link I have listed.
Do some reading in the credit forum and if you have any questions, feel free to ask in there.
2007-04-07 13:33:14 · answer #1 · answered by echo 7 · 1⤊ 0⤋
kmuh21 Hi what happen to you is that you got caught up in the hot new industry. Buying peoples debt for Penny's on the dollar . Here is what happen you owed 7000$ .They sold the loan .That company collected what they could 2800$ . And they sold the rest of the loan 4200$. I would also guess the new company that holds your loan .Is adding more debt for late payments. Which our system is set up to let them do .. You need professional or legal help . The person or people calling you are payed a % .They are not going to leave you alone . And will give you a bad credit report .. Get some help now .. Good Luck
2007-04-06 20:23:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not a complete scenario laid out here but in general, sounds like they are cheating you. WHen a repo occurs your balance will increase w/ the fees it cost to perform all repo expenses and any fees in your contract that was disclosed. The vehicle is sold and amt pd to the balance. If there is an unpaid balance afterward you are responsible. Since you have pd this balance you should be left alone. Now youre being cheated possibly and stand your ground w/ whatever evidence you have.
2007-04-06 20:04:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
oh, boy... you got stuck big time.
When you owe a debt, if you pay even ONE CENT to someone in the form of a "settlement", it resets the clock to start... they can hound you (LEGALLY) until forever.
http://www.fair-debt-collection.com/index.html
Someone TRIED to contact me a few months back about a debt that was over 15 years ago... I just laughed and hung up and sent them a copy of that letter. Haven't heard again since.
2007-04-06 20:05:00 · answer #4 · answered by Harleigh 6 · 0⤊ 0⤋
When you paid them off, you should have demanded a letter of satisfaction of the debt.
2007-04-07 16:45:15 · answer #5 · answered by Quixotic 3 · 0⤊ 0⤋
The law says they have to stop calling if you request it.
2007-04-06 20:04:52 · answer #6 · answered by jst4pat 6 · 0⤊ 0⤋
Call an attorney.
2007-04-06 20:02:09 · answer #7 · answered by The Man In The Box 6 · 0⤊ 0⤋