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So I've done a form search and I can't find anything that really addresses my question. Years ago, nearly six now, I fell behind on a vehicle loan and of course the vehicle was repossessed. Years go by and I hear absolutely nothing about it, until November 2013. I started receiving calls from collectors regarding a lender that I had never heard of. after doing some research I learned that Citibank had sold of their auto lending division. I've now been through 8 collectors attempting to collect for this debt, one I filed suit against for breach of Consumer Protection Act laws, and none of them have validated the debt even though formal request has been made. At no time was I ever contacted to be informed that my debt had been sold, nor was I ever provided the state required documentation post repossession. the only thing I ever received was a phone call from a person that bought the vehicle at auction and found my belongings to tell me that he paid 33 percent of the fair market value for the vehicle. So five years into this ordeal it now starts to show up on my credit report. 5 years after never being given a means or method to redeem or even so much as an accounting of my loan after the vehicle was sold at auction. My question is what recourse do I have?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That's what happens, they sell it at auction and try to collect the balance. If you don't pay them, they can eventually go to court and get a judgement, attach wages and accounts to get their money. As long as they have not met the legal requirements, which differ by state (such as the "validation") you have time to save up or try to borrow some money.
Depending on the amount they will probably not give up, and you will have to pay. When you get a letter from a law office it's time to respond and address the payment. Check on the validation law, in some states it requires a written request. The timing is normal, they merely send letters or continue selling the debt until it gets close to the deadline, in some cases 7 years. Then they get serious.
One option is to make payment arrangements with the current collection agency and start paying it off. You could also file bankruptcy if you are in a desperate situation. I'd highly advise against bankruptcy, but it is an option.
I bet that what is happening is that your debt is about to be discharged under your state's statute of limitation. So it is being sold for fractions of pennies on the dollar to real bottom feeders. In spite of laws against scare tactics, they will threaten to burn your house down if they think they can collect the debt. So just continue to calmly say, provide me with proof that I owe this money. 99% of the time, they can't. *Never* admit to them that you have ever owed the debt. That starts up the statute of limitations again. In fact, tell them to not call you, and only communicate in writing.
They'll give up - eventually.
Edited to add: I don't believe anyone is obligated to inform you that the debt has been sold, when, as in your case, it is obviously a bad debt. Also, for the next year or so, pull your credit reports religiously and dispute this debt every time it pops up - just ask for proof that you owe the money. The credit reporting agency is supposed to remove items that cannot be documented.
Thanks for the feedback guys. I'm standing my ground with this one. After researching with my state I learned they did not follow any of the state requirements for documentation post repo. A valid dept yes, but having gone 5 years not able to address it due to account sell offs only to have them now start coming after me.. Add in that nobody seems to be able to validate it.
Location: 23.7 million to 162 million miles North of Venus
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A repo voids the original contract. The deficiency balance is not under contract, so, the deficiency balance falls under the UCC, which has a 4 year SOL from the date the deficiency was created (date the repo was sold) in all states but one, in that one state it's 5 years.
Not all states require pre-repo paperwork be sent, but, in all states the deficiency notice, after the sale, must be sent - typically within a 2 year period after the sale of the repo, possibly sooner if a states law is more specific on how quickly the notice must be sent.
Google the term Why Chat's Credit Confusion and scroll down on the main page for the Letter to Dispute Repossession Deficiency. Follow the steps exactly as they are laid out.
After you follow that, the CA's will probably disappear , along with what they are reporting on your credit reports.
Well after after standing my ground they did indeed back off. In both Oregon (Purchase location) and Washington (residence) the state requires a notice of right to redeem as well as a notification of the time, date, and location of auction. The original lender (Citi Auto) never followed through. They did furnish a canned letter regarding transfer of the debt to Santander but at no time was the auction information made available. So I counter sued the collection agency and they agreed to file a satisfaction of debt with my district court. Now I'm out to get Santander off of my credit report.
Location: 23.7 million to 162 million miles North of Venus
23,491 posts, read 12,496,511 times
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Quote:
Originally Posted by Hammer40
Hi guys..
Well after after standing my ground they did indeed back off. In both Oregon (Purchase location) and Washington (residence) the state requires a notice of right to redeem as well as a notification of the time, date, and location of auction. The original lender (Citi Auto) never followed through. They did furnish a canned letter regarding transfer of the debt to Santander but at no time was the auction information made available. So I counter sued the collection agency and they agreed to file a satisfaction of debt with my district court. Now I'm out to get Santander off of my credit report.
Again. Thank you all for the input.
If they made that agreement outside of the courtroom, and on paper, make sure that you make a copy of the paperwork and have the court clerk put it in your file!!
It's amazing that there is such a high amount of creditors who never bother to follow the repo laws as far as sending the required paperwork. So easy a monkey could do it, yet creditors often don't
my husband is going through a similar situation but not with a car dept. We recieved a letter in the mail couple months ago saying we owe $200 for a past medical bill. Letter showed it went to 2 collection agencies and was from 6 years ago! We thought it was fake because we had never heard anything about it and we paid all bills that we got when he went to the hospital(we paid monthly) I dont know how we wouldnt of gotten the original bill for it or any letter after. He called the agency disputing it and the lady said theyd settle it for $160 payment right then over phone. He said no, because we wanted to look into it further.. not sure what we can or should do. Also said theirs a $90 bill floating out there to that they say we never paid. The lady has called almost everyday now and he keeps ignoring call.
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