what is priority?Collection or repossession

[shavanna]

I need help please. I financed a car approx 6 years ago with a finance company that "specializes" in helping those with unfavorable credit. So I have a high interest rate but I needed a ride. Fast forward until last year. I had some financial setbacks and a couple of slow payments, then towards then end of the year I missed a payment or two. I looked into refinancing with a credit union, and was informed that I could, but they were showing that I had made all but one payment to the finance company. So I contacted the finance company and asked how was my balance approx still at $10,000 and I've made all but one payment. The rep said, oh, well you had some slow payments, and you missed a payment. I asked if they could send me my payment history and how they calculated the amount. I didn't get anything. I emailed them twice requesting it, didn't get it. Well, I didn't make any more payments. They started repossession. They have been unable to obtain the vehicle. Now I have received a letter from a lawyer's office stating they are attempting to collect the debt. I sent them a validation request. They sent me another letter just stating what the amount was, the name of the finance company, and a partial account number. I responded requesting once again validation- in bold, requesting a breakdown of how the amount was calculated. I also requested in the letters to cease repossession and collection attempts until that was provided. I haven't received anything else from the lawyers office, it's been 30 days. A couple of days ago I received an envelope with a card that said contact this person urgently, it had a phone number, but no company name or any other identifying information. I researched the address on the envelope, it was a repossession company. What can I do? All I want to know is how they came up with their amount. I have my contract, I can't figure it out. Is there any hope? Do they not have to provide that information to me? Any suggestions or advice on what my next steps should be?

[Clydesmom]

I need help please. I financed a car approx 6 years ago with a finance company that "specializes" in helping those with unfavorable credit. So I have a high interest rate but I needed a ride. Fast forward until last year. I had some financial setbacks and a couple of slow payments, then towards then end of the year I missed a payment or two. I looked into refinancing with a credit union, and was informed that I could, but they were showing that I had made all but one payment to the finance company. So I contacted the finance company and asked how was my balance approx still at $10,000 and I've made all but one payment. The rep said, oh, well you had some slow payments, and you missed a payment.ant to know is how they came up with their amount. I have my contract, I can't figure it out. Is there any hope? Do they not have to provide that information to me? Any suggestions or advice on what my next steps should be?

High interest loan + late payments + slow payments + missed payments + stop paying = HIGH balance in no time flat. There are late fess, interest accruing on the unpaid balance and fees, as well as now you have repossession fees, collection fees, and attorney fees.

 

I need help please. . They started repossession. They have been unable to obtain the vehicle. Now I have received a letter from a lawyer's office stating they are attempting to collect the debt. I sent them a validation request. They sent me another letter just stating what the amount was, the name of the finance company, and a partial account number. I responded requesting once again validation- in bold, requesting a breakdown of how the amount was calculated.

 

A couple of days ago I received an envelope with a card that said contact this person urgently, it had a phone number, but no company name or any other identifying information. I researched the address on the envelope, it was a repossession company. What can I do?

You have a MAJOR problem. I can guarantee you there is absolutely NO clause in that finance contract that allows you to stop paying because you disagree with how they are calculating your loan balance. Second: many states do not require a lender/lien holder on a vehicle that is financed to go to court before repossessing and accelerating the contract. Most if not all finance contracts have an acceleration clause that once you default the entire loan comes due.

 

Now that the car is out for repossession willfully hiding it is a criminal offense. They can have you charged criminally for doing this and it will stick. You either contact the lender and make arrangements to redeem the loan and resume payments or turn the car over. You are playing a VERY dangerous game. A professional repo company WILL get the car.

 

They sent me another letter just stating what the amount was, the name of the finance company, and a partial account number. I responded requesting once again validation- in bold, requesting a breakdown of how the amount was calculated. I also requested in the letters to cease repossession and collection attempts until that was provided. Do they not have to provide that information to me? Any suggestions or advice on what my next steps should be?

The information they sent to you IS sufficient for validation directly with the consumer. Most consumers do not understand what constitutes legal validation.

 

You have absolutely NO legal right to demand they cease collection efforts or repossession. The ONLY thing that stops those is either paying or filing BK.

 

Look into BK, borrowing, redeeming, or if none of that is possible: turn the car in.

Edited May 17, 2013 by Clydesmom

[shavanna]

The high amount that they are saying I owe was before repossession and lawyers, was it really that unreasonable for me to request that they provide me a payment statement so I could see why I owed so much since they couldn't verbally explain it to me? Yeah, not paying wasn't smart, but was my only option at the time. Also, I'm not hiding the vehicle. I've only seen the repo person one time, he walked up to me and said he was with the finance company and wanted to get the car, but I didn't have it at the time. The only other times I know that they came by is that the put a business card on the windshield of my other vehicle (even though I'm home, no one came to the door). I haven't voluntarily turned in the vehicle because I would like pay for it and keep it, but I'm not going to pay $15k on top of the outrageous amount I've already paid. I guess when they offered to move a payment to the end of my loan to help me out with my one or two slow payments were really no help at all. I guess I was too stupid to see what that really meant and they sure weren't offering any information.

[Clydesmom]

It wasn't unreasonable to ask for the accounting but once you stopped paying all bets were off and the acceleration clause and repossession trumps all.

 

You can start by contacting the lender and asking what the price is to redeem the loan and call off the repossession. Keep in mind that they do not have a legal obligation to allow you to redeem. Most lenders will because it is easier and less expensive than repossession. However, there are a few that stick to the acceleration clause to the letter.

 

Moving a payment to the end of the loan just prolongs your loan and increases your interest. Many consumers believe "slow" payments are no big deal but they are. While it may not trigger anything on the credit reports, it is still late and generates more interest and fees.

 

Repo guys are not required to come to the door and most don't due to safety concerns. (I once had a patient who was a repo guy who returned to his office dazed and confused, didn't know his own name. They sent him to the ER to discover he had a crushed skull. Ultimately determined the last car he tried to repo the owner hit him in the head 3 times with a baseball bat) They will strike late at night while you are sleeping or when you go into the grocery store (saw this once) and come out and the car is gone.

 

If you can't work it out with the lender then you will lose the car.

[MonkeyBelly]

Well, I think it's a matter of what you want. Do you want to feel vindicated, or do you want to keep your car?

I think you're playing with fire.

[LoneTexan]

The high amount that they are saying I owe was before repossession and lawyers, was it really that unreasonable for me to request that they provide me a payment statement so I could see why I owed so much since they couldn't verbally explain it to me? Yeah, not paying wasn't smart, but was my only option at the time. Also, I'm not hiding the vehicle. I've only seen the repo person one time, he walked up to me and said he was with the finance company and wanted to get the car, but I didn't have it at the time. The only other times I know that they came by is that the put a business card on the windshield of my other vehicle (even though I'm home, no one came to the door). I haven't voluntarily turned in the vehicle because I would like pay for it and keep it, but I'm not going to pay $15k on top of the outrageous amount I've already paid. I guess when they offered to move a payment to the end of my loan to help me out with my one or two slow payments were really no help at all. I guess I was too stupid to see what that really meant and they sure weren't offering any information.

 

 

I feel your pain. I have experience with late payments and slow pay. I kept getting late notices in just shortly after purchase for a car my wife and bought. I called and called for explanation and I was told I am being charged 25+ dollars for every month I am late. I complained and complained all the while getting the same answer. So, I said the heck with it but continued to make the payments every month cuz I just knew I would win in the end and make them look like crooks. Some 30+ late charges added up to 800+ dollars by the last year of pay until pay-off. Instead of giving up, I continued to pay and in the end, I kept the car and stayed out of default but my pig headed attitude cost money and 30+ 30 day lates on my credit report. I felt like a fool when I discovered I had totally skipped paying a whole month and was literally 30 to 31 days late every single payment. Yep, I knew more than they did. Funny though, they were just as nice as they could be to me every call. They always said I was late, just never that I was 30 days late. haha, who got the last laugh.

 

I just didn't get it. They REALLY did try to set it straight.

 

What state are you in?