off my car and then sent me a letter with the remaining balance of $4000 and change that I owe. Now, a few months later, I am getting a bill from some law firm saying that I owe over $7,000. How is this possible? Has this ever happened to you before, and if so, what does it mean? I want to protect myself from fraud, and of course I am going to call to investigate, but I want to hear from someone who has experienced this.
2007-11-01 06:35:07 · 7 answers · asked by bonstermonster20 6 in Business & Finance ➔ Other - Business & Finance
Once a car is repossessed and then sold, you will be responsible for paying the deficiency. The deficiency is the remaining balance that the sale of the car didn't pay off. In addition, you will be responsible for:
Costs of repo, costs of sale, interest on the unpaid balance, interest on any judgment (which will probably be different than the contract interest), cost of collection (includes turning over to a collection agency or attorney), costs of suit, attorneys fees, etc. I could go on, but you get the point. $4,000 turns into $7,000 pretty quickly. I'm surprised you don't owe more.
2007-11-01 06:46:07 · answer #1 · answered by scottclear 6 · 1⤊ 0⤋
No this never happened to me but, as an experienced professional, I can tell you the bill from the lawyer may well be legit. The fact that you had the car repossessed meant you lapsed on the loan payments and since this is the case you are obligated to repay the portion of the loan that you still owe plus interest and in some cases legal and processing fees.
2007-11-01 13:40:24 · answer #2 · answered by Calm 4 · 2⤊ 0⤋
if you didnt make contact with the origin company they can "sell" your debt to another company and they can add their "fees" to the debt in order to make a profit from the purchase of the debt. I would contact the first company see if this is the case, if theyhave call the 2nd one and arrange a payment arragement soon or they will just increase the debt further....
2007-11-01 13:39:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋
"Green Bay all the Way" is correct. Plus the lawyers fees. They don't work cheap.
What you should have done, is made at least small but regular payments.
2007-11-01 13:40:10 · answer #4 · answered by don_sv_az 7 · 0⤊ 1⤋
Only those concerned with good credit need worry about such nonsense.
Live on cash and let the greedy businessmen have their fun wasting postage stamps.
.
2007-11-01 13:38:40 · answer #5 · answered by AlmondJoey 2 · 3⤊ 1⤋
THAT HAPPEN TO MY PARENTS THEY ARE CHARGING YOU FOR THE REMAND ER OF WHAT U OWE AND WHAT IT COST THEM TO ACTION IT AND TO GET A LAWYER THEY ARE GOING TO CHARGE YOU WHAT EVER THEY CAN (HIDDEN FEES) BUT MY PARENTS DID NOT PAY FOR IT AND THE CREDIT PLACE JUST WROTE IT OFF
2007-11-01 13:42:02 · answer #6 · answered by Marie21 2 · 2⤊ 1⤋
well if you haven't paid on the balance, its called interest and finance charges!!! good luck with that
2007-11-01 13:38:02 · answer #7 · answered by loving life!!!!! 6 · 0⤊ 2⤋