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Old 03-21-2018, 03:36 PM
 
7 posts, read 2,999 times
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So the story is a long one, Ill try to keep it short.

About 7 years ago (2011) my pops got me my first car and cosigned me onto the loan. About 2 year into the payments, I guess he defaulted and we got the car repossessed. This was the first time around and we payed the fees for the repo and got caught up with the payments and ultimately got the car back. Several months later the car got repossessed again due to default on the payments (again). Now at this point at around the beginning of 2014, I got fed up and decided to go about work and school with my brothers car instead. Years have passed and now around the beginning of year 2018 I get a call from a collections agency telling me they are going to sue me for an accident that happened in October 2014. I NEVER EVEN HAD THE CAR AT THAT POINT AND NEITHER DID MY POPS. The guy was rude and snarky, and it sounded too much like a scam, so I disregarded the call. I get a letter a month later; a "memorandum of cost after judgement" and now it seems all too real. Apparently it was still under me and my fathers name and therefore we are held responsible, but according to my credit report the last dated payment is May 2014. This makes no sense! What do I do?

Thank you guys in advance and I really hope to get this all figured out.
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Old 03-21-2018, 03:53 PM
 
Location: on the wind
4,131 posts, read 1,540,807 times
Reputation: 14724
Two issues here; the loan and the accident.

Loan: What happened to the original loan after you stopped driving it? Was the loan ever paid off? Was the car sold? Did the new owner assume the loan or pay it off? If you don't know, why not? Call the original lender and make sure they closed out the loan.

Accident: Who's name was on the car's title in October 2014? If neither of you transferred the title, the car is still yours even if you were not driving it. If the title had been transferred no one could come back to you about the accident, but the loan may still be out there somewhere.

Cars are sticky things. They can't just be ignored as you found out. They have histories that are traceable. Call the DMV about the title.
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Old 03-21-2018, 04:29 PM
 
Location: Aurora Denveralis
2,980 posts, read 1,017,500 times
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This is why you don't let a car drive away with a new owner without immediately informing DMV of the sale. Much less just wander off and abandon it like a puppy.
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Old 03-21-2018, 04:48 PM
 
18,242 posts, read 11,653,926 times
Reputation: 11855
Quote:
Originally Posted by Forager22 View Post
So the story is a long one, Ill try to keep it short.

About 7 years ago (2011) my pops got me my first car and cosigned me onto the loan. About 2 year into the payments, I guess he defaulted and we got the car repossessed. This was the first time around and we payed the fees for the repo and got caught up with the payments and ultimately got the car back. Several months later the car got repossessed again due to default on the payments (again). Now at this point at around the beginning of 2014, I got fed up and decided to go about work and school with my brothers car instead. Years have passed and now around the beginning of year 2018 I get a call from a collections agency telling me they are going to sue me for an accident that happened in October 2014. I NEVER EVEN HAD THE CAR AT THAT POINT AND NEITHER DID MY POPS. The guy was rude and snarky, and it sounded too much like a scam, so I disregarded the call. I get a letter a month later; a "memorandum of cost after judgement" and now it seems all too real. Apparently it was still under me and my fathers name and therefore we are held responsible, but according to my credit report the last dated payment is May 2014. This makes no sense! What do I do?

Thank you guys in advance and I really hope to get this all figured out.

You need to find a good attorney and or otherwise seek out competent legal advice.


Just because vehicle was repossessed unless you followed this by contacting your state's DMV and informing them you no longer owned/possessed the auto, you may very well be held liable for events that have occurred post repossession.


I'd contact your state's DMV *NOW*. In fact would go to the nearest office bringing all papers related and get the matter sorted out at least for future.


As for the past you have two issues; financing (the loan you and your father took out to buy the vehicle), and registration.


https://www.sapling.com/10060657/tit...ar-repossessed
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Old 03-21-2018, 05:04 PM
 
Location: Cebu, Philippines
2,166 posts, read 797,279 times
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If you were contacted by a collection agency, none of the original lenders are involved any more. The collection agency has bought the debt, for pennies on the dollar. Maybe 10-20%. They will agree to close the debt for any amount above what they paid for it. Phone the collection agency that contacted you and make an offer to pay, say, 25% of the total amount, immediately, in full. See if they make a counter-offer.

It might not work that way, but if you are willing and able to pay off that amount immediately, give it a try.
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Old 03-21-2018, 06:04 PM
 
Location: Aurora Denveralis
2,980 posts, read 1,017,500 times
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Quote:
Originally Posted by cebuan View Post
If you were contacted by a collection agency, none of the original lenders are involved any more. The collection agency has bought the debt, for pennies on the dollar. Maybe 10-20%. They will agree to close the debt for any amount above what they paid for it. Phone the collection agency that contacted you and make an offer to pay, say, 25% of the total amount, immediately, in full. See if they make a counter-offer.

It might not work that way, but if you are willing and able to pay off that amount immediately, give it a try.
The collection is not for the loan, but for some kind of accident judgment based on the vehicle's owner of record.

1) An attorney is not optional at this point.
2) It sounds so much like an elaborate scam that I would proceed on that basis - but an attorney could nail it down, either way, really fast.

(I've had these calls from semi-legit bounty-hunter types, looking for settlements on tickets and accidents five states from where I or the car has ever been. They work on incorrectly written tickets and partial license plates and the like, and it's borderline between legit and shakedown.)

Make them prove every bit of the claim, and fight it as a non-owner. But only an attorney is capable of handling that, IMVHO.
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Old 03-21-2018, 08:58 PM
 
5,221 posts, read 2,377,031 times
Reputation: 5111
Quote:
Originally Posted by Quietude View Post
The collection is not for the loan, but for some kind of accident judgment based on the vehicle's owner of record.

1) An attorney is not optional at this point.
2) It sounds so much like an elaborate scam that I would proceed on that basis - but an attorney could nail it down, either way, really fast.

(I've had these calls from semi-legit bounty-hunter types, looking for settlements on tickets and accidents five states from where I or the car has ever been. They work on incorrectly written tickets and partial license plates and the like, and it's borderline between legit and shakedown.)

Make them prove every bit of the claim, and fight it as a non-owner. But only an attorney is capable of handling that, IMVHO.
You and I donít agree on much, but we agree on this.

^^This is sound advice, OP.
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Old 03-21-2018, 10:12 PM
 
Location: Cebu, Philippines
2,166 posts, read 797,279 times
Reputation: 4334
Corrrect me on this point, if I am wrong. A collection agency is a firm that buys previously uncollected debts, and assumes the right to recover. They buy the debt for a fraction of its face value, and collect what they can, in hopes of turning a profit. Sometimes they get it all, sometimes they get nothing. An in-between can be negotiated.

The original has already sold the debt for a fraction of the amount due, and is now out of the picture.
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Old 03-22-2018, 07:00 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,386 posts, read 50,582,032 times
Reputation: 28616
Quote:
Originally Posted by cebuan View Post
Correct me on this point, if I am wrong. A collection agency is a firm that buys previously uncollected debts, and assumes the right to recover. They buy the debt for a fraction of its face value, and collect what they can, in hopes of turning a profit. Sometimes they get it all, sometimes they get nothing. An in-between can be negotiated.

The original has already sold the debt for a fraction of the amount due, and is now out of the picture.
True in some cases, in others the collection agency is doing the work for a percentage, usually 50% of the total collected. Either way, if a judgement was made in court due to the debtor not appearing to defend them self, it's going to take a lot of work (by an attorney) to straighten it out. That could cost as much or more than just paying it, however. Since it still could just be a scam, I would definitely have an attorney at least look at it. At the time of the first notification, proof of the repossession might have stopped it.
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Old 03-22-2018, 07:46 AM
 
3,529 posts, read 2,173,136 times
Reputation: 2636
It seems weird to me that the first time you heard about this accident was after you've been sued, lost, and the judgement amount has failed to be collected by the originator. But, I'm not a lawyer.
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