How should I handle this repo?

[txfight]

I have a 2 year old repo that I need a little advice on.

 

Here is the situation. In July 2002 I had a truck (financed by Auto One) repossessed. The original price on the truck was $12,699, and the amount charged off by Auto One was $6,236 (I am not sure what the payoff on the truck was at the time it was repossessed). I live in Texas, and the account is within the SOL.

 

I want to buy a house in the next year, and this is the one has really worried me because of the $ amount and the fact that it is still within the SOL. I have been trying to figure out how to deal with this for a couple of months because I am about to come into some money (work bonus) and will be able to pay the repo off.

 

I decided to post this now because yesterday I found a letter in the mail from a CA named Syncom (I have never heard of them, the return address is in Houston) that says:

 

 

Txfight

123 Address St.

Houston, TX 77123

 

RE: Auto One

Client Account: XXXXXXXXX

Our Account: xxxxxxxxxxxxx

 

Date: 08-12-04

 

Know all men by these presents that the undersigned has hereby agrees to offer you the following settlement on behalf of the above referenced client.

 

Current Balance: $7,000

Settlement Amount: $2,000

Offer Valid Until: 08-30-04

 

Terms:

 

Upon receipt of the settlement, our client will inform the credit reporting agencies that the account has been settled in full with a zero balance.

 

Should you have any questions regarding this, please call us at (800)580-5168.

 

Please make check, cashiers check, or money order payable to Syncom.

 

This is an attempt to collect a debt by a debt collector. Any information obtained will be used for that purpose.

 

Sincerely,

Lady’s Name

General Manager

 

 

This sounds like a great deal to me. I had planned to call and offer to settle the account for about 50%, so this is even less than I had hoped to pay. My question is should I just pay Syncom, or should I call Auto One to make sure Syncom has the authority to offer this settlement. I realize that the goal is to negotiate a pay for delete, but if just pay it I can always dispute it later.

 

My worries are:

 

I do not want to pay $2,000 only to have Auto One sell the remainder of the debt to another CA now that they think I have the money to pay it off. I also do not want to call Auto One if they have pretty much given up on me paying for this (don’t want to wake a sleeping dog) if I can just pay the $2,000 and be done with this.

[MarvBear]

have you looked into the repo sticky?

 

Did the Dealer/Lender do what they are legally required to do in regards to repossessing the alleged vehicle?

 

Did they send you proper timely notices as required by law?

[MarvBear]

and

 

 

 

HEY!!!!!!!!

 

Welcome to creditboards!!!!!!!!!

[almostthere]

If the repo was done legally, etc, etc...and you decide to go this route, Don't forget you will need to pay taxes on the $5K they write off. It's a good deal if you can cover that.

 

My husband and I had almost $12K wrote off a few years ago and owed about $3K in taxes because of it.