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Emergent Services Collection Letter/Class Action filed


Renegade2013
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I don't normally post on here, usually just read the advice given but today I received a letter from a car that was repossessed in 2015 from Emergent Servicing. After doing a little research, I see that a class action lawsuit has been filed in New Jersey- I am in North Dakota but it covers their violation of FDCP with their statement in their letter that states "Unless you, within thirty days of receipt of this notice, dispute the validity of the debt, or any portion thereof, we will assume the debt is valid." 

The class action lawsuit was filed because there is no mention of the disputes being submitted in writing which could lead to confusion and, thus, is in violation of the FDCP. 

My letter contains this exact statement that the class action is centered around. Here is the link to the page containing the class action lawsuit itself and information: https://www.classaction.org/news/emergent-servicing-hit-with-class-action-over-alleged-failure-to-communicate-debt-dispute-rights

 

My question is this: the debt I owe is very high so I don't want to ignore this letter for fear of a lawsuit coming my way nor do I flippantly want to respond to this letter knowing that this will restart the aging process of this debt so what is the best way to proceed with this situation? 

 

Thanks in advance for any advice 

 

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I don't normally post on here, usually just read the advice given but today I received a letter from a car that was repossessed in 2015 from Emergent Servicing. After doing a little research, I see that a class action lawsuit has been filed in New Jersey- I am in North Dakota but it covers their violation of FDCP with their statement in their letter that states "Unless you, within thirty days of receipt of this notice, dispute the validity of the debt, or any portion thereof, we will assume the debt is valid." 

The class action lawsuit was filed because there is no mention of the disputes being submitted in writing which could lead to confusion and, thus, is in violation of the FDCP. 

My letter contains this exact statement that the class action is centered around. Here is the link to the page containing the class action lawsuit itself and information: 

https://www.classaction.org/news/emergent-servicing-hit-with-class-action-over-alleged-failure-to-communicate-debt-dispute-rights

 

My question is this: the debt I owe is very high so I don't want to ignore this letter for fear of a lawsuit coming my way nor do I flippantly want to respond to this letter knowing that this will restart the aging process of this debt so what is the best way to proceed with this situation? 

 

Thanks in advance for any advice 

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If the car was repo'd they got the asset back and sold it at auction to repay most of the secured debt. So how can the balance be "very high"?

 

What amount are you dealing with as the remaining balance? 

 

I would say that the odds of a lawsuit are very low. Companies typically only file a lawsuit if they think there is a high chance of you actually paying something. Filing lawsuits is not free. Even law firms that specialize in bad debts, and do collection lawsuits in bulk, charge the creditor legal fees.

 

If you are defaulting on a car loan, the odds that you have a bunch of money are not good. You are not likely to be a high priority target for a lawsuit.

 

Responding to their letter does not restart the aging process.

 

As for how to proceed, I would send a FDCPA dispute letter. I would threaten to sue them for violation of the FCRA and FDCPA if they put anything negative on my credit files. I would go on offense and threaten to sue them for defamation of character, libel, etc.

 

If there is already something negative on your credit files related to this, give them a deadline of next Friday close of business to get it off of your credit files.

 

That is what I would do.

But most people are not like me. 🙂 

 

Don't do any of what I just suggested unless you are comfortable dealing with a lawsuit pro se. I don't mind actually filing a lawsuit against them or defending a lawsuit if they do sue me.

Edited by RocketGoBoom
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The remaining balance is 20,100.

 

Do you think its best to send a verification letter to the creditor and credit bureaus or is that considering "poking the bear"? I want to see the paper trail of the repo and the current amount owed as I bought the car for roughly 21,000....

Edited by Renegade2013
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17 minutes ago, Renegade2013 said:

The remaining balance is 20,100.

 

Do you think its best to send a verification letter to the creditor and credit bureaus or is that considering "poking the bear"? I want to see the paper trail of the repo and the current amount owed as I bought the car for roughly 21,000....

 

$20,100 seems really high for a car that was repo'd.  It is as if they gave you no credit for it being sold at auction. That is messed up right there simply on their accounting. The only way to find out more info is to send the dispute letter.

 

The odds of getting sued are low. Most don't do it. Most of the time they just give it to a collection agency and they send you letters and annoying phone calls.

 

Of course, you could be sued by the creditor that owns the debt. But the odds are minimal. Only you can decide your comfort level with all of this.

 

I would poke the bear. But that is just my attitude. I am aggressive and will drop my own lawsuit on them without a second thought. Not everyone has the same mental attitude towards these situations.

 

 

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look to your states UCC laws - on Title 9 secured transactions  instead of a std FDCPA validation letter 

 

41-09-20    (9‑210) Request for accounting ‑ Request regarding list of collateral or statement of account

 

most of the times they are attempting to collect interest and fees that are not allowed under the UCC 

the Contract / loan was cured by the repossession of collateral ; "the security interest is perfected upon attachment" 

 

all that is left is the deficiency balance due , and there are mandated state laws on how that is calculated. 

 

https://www.legis.nd.gov/cencode/t41c09.html

 

read these 

 

41-09-107    (9‑610) Disposition of collateral after default
41-09-108    (9‑611) Notification before disposition of collateral
41-09-109    (9‑612) Timeliness of notification before disposition of collateral
41-09-110    (9‑613) Contents and form of notification before disposition of collateral ‑ General
41-09-111    (9‑615) Application of proceeds of disposition ‑ Liability for deficiency and right to surplus

41-09-120    (9‑625) Remedies for secured party's failure to comply with chapter
41-09-121    (9‑626) Action in which deficiency or surplus is in issue
41-09-122    (9‑627) Determination of whether conduct was commercially reasonable

 

 

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Thank you both- these are great ideas and I'll be working on a dispute letter to send out to the creditor and credit bureaus. 

 

In the dispute letter, do I include the UCC laws initially or should I see what they give me back in a standard dispute letter first? 

I do not have high hopes that I will get an accounting ledger showing how they arrived at the $21,000 figure they are asking for, although I feel as though I am entitled to that. 

 

Other than the standard information included in a dispute letter, anything specific that either of you would add?

 

Thanks again for the advice!

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I am sort of undecided as to how I would approach this. On one hand, I want to know how they arrived at their amount due when they did a repo'd on the secured asset. Where is the credit for that asset that the OC took away?

 

But if you ask for that info, you are basically admitting in writing that you do owe something, so that could make it hard to fight later if this does get into a lawsuit. 

 

But the reality is that the actual amount owed is probably less than $5,000 unless the car was totally trashed and sold at a HUGE discount leaving a much larger loan deficit.

 

Try to word the letter in a way that you are requesting to know how they arrived at that amount without actually admitting that you owe the debt or that you know what this is about. That is my advice.

 

 

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UCC letters go to the Creditors 

 

FDCPA /UCC to CA only, 

 

FCRA dispute letters only to Credit reporting agencies 

 

did you receive all the required notifications before it was repo'd ? 

 

don't send any letter right away until you have looked at all the angles 

 

the OC could still file suit to recover 

 

 

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Okay- This makes sense. 

 

I have received no letter/phone call, etc. about this repo at all when it happened  as well as none for almost 5 years so I have no paper trail which makes me wonder why this is happening so many years later and if it is wiser to just ignore than challenge or ask questions...

Edited by Renegade2013
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23 hours ago, RocketGoBoom said:

But the reality is that the actual amount owed is probably less than $5,000 unless the car was totally trashed and sold at a HUGE discount leaving a much larger loan deficit.

 

Side note, but of potential benefit for others...

 

Unless you have actually attended several auto auctions and observed for yourself, it is not at all uncommon for vehicles to sell for a fraction of what they might appear on a lot for.  This holds true no matter whether it is a repo auction or a storage auction.  And since so few people with repos are losing vehicles that are unique in any manner, the auction values are tiny since they are basically on par with the fleetmobiles from rental outfits.  There are plenty of deals to be had at auction provided you know going in that you are basically buying sight-unseen other than a walk-around pre-auction...

 

A repo sale is NOT going to be like a Mecum auction where you see older vehicles that are not even numbers-matching fetching upper five figures simply because they are still shiny.  They ARE a great way to get into a vehicle for about a quarter (if that) of the sticker price.  The BHPH lots LOVE those auctions because they get to then have a newish vehicle that they will get to sell three or four times. 

 

AND...because those are commercial auctions where the pricing is consistent no matter what part of the country one is located, it IS a commercially-reasonable sale and thus comports with the statutes that govern remaining balances...

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yes,  but OP  never received any of the required paper work  

 

there have been a few repo cases dismissed here on CB;  

 

One where the Lender kept the car for corporate use and did not sell it ,   which under that States UCC meant they could not sue for recovery of the deficiency balance 

 

and One where the lender actually owed the consumer a surplus on a late model VW 

 

without a full accounting of the sale price  and letters OP doesn't know what happened ;  all too often the CA is going off the original contract balance prior to repo, and trying to collect it like a Credit card account with the a default rate of interest- which doesn't apply on secured transactions  

 

if OP has the VIN #  ,  maybe able to find the sale $$ at the DMV , etc. 

 

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