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My parents took out lease on vehicle for sister that eventually got repossessed. The vehicle has since been resold. The finance company wants my parents to pay what they owed on it and threatened to file claim with IRS to have it deducted from their anticipated refund. I want to say they can do this but want to make sure.
Posted in: Auction FAQ | | Comments (6)
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They are blowing smoke trying to scare them! They can NOT touch their Federal tax refund. PERIOD!!
The IRS does NOT collect debts for private businesses! EVER!!
Comment by Dances with Aardvarks — June 30, 2009 @ 9:05 am
Oh yes, they can do this. But they would have to wait in line if another company have a lein against them. But yes, they can.
Comment by Love Bug — June 30, 2009 @ 9:05 am
They are trying to scare you. They CANNOT take your tax refund at all.
Comment by Shane F — June 30, 2009 @ 9:05 am
They can't do this….They don't collect for private credit matters!!
Comment by June H — June 30, 2009 @ 9:05 am
Naw, they are bluffing. Governmental agencies, insured student loans, child support–those are the things that can be collected through IRS. A vehicle lease doesn't fall into this category.
Shame on them! They should be reported as this is very unethical.
Comment by Sharon T — June 30, 2009 @ 9:05 am
The IRS doesn't take refunds for private debts like that, only for government debts, defaulted student loans, or back child support.
Comment by Judy1 — June 30, 2009 @ 9:05 am