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5 years ago I lost my job and got two months behind on my car payment. The creditor told me to just give it back. I asked them to give me more time or to lower the % rate. They continued to haress and kept telling me the best thing to do is to give it back. We did, but now another credit company is saying that we owe ,000,00! Have they lost their mind? How or why should I pay that when they took the car and sold it. I live in the state of Texas and purchased the car in Texas. They keep calling and now they call my place of employment! What should I do?

7 Comments »

1. 

   Don’t pay a dime. If they do not get a judgement within 6 years, the statue of limitations will expire and this starts from your last payment received. They have 6 years to file for a judgement, if they do not get one, you are free and clear.

   But it really ticks me off that you did not make your car payments and now honest people like me are. You should go pay them.

   Comment by Go Broncos — May 13, 2011 @ 11:26 am

2. 

   I’m sure it’s illegal to call you at work. When they call again, perhaps just tell them to sue you. It would stop the calls and a judge would be able to adjust the amount you owe. Plus you would be able to make payments. But whatever loss they suffered, you would be responsible. Good luck. I hope it works out for you.

   Comment by newguyintown86 — May 13, 2011 @ 11:26 am

3. 

   Pay them. That’s what you owe, yes, they took it a sold it after you didn’t make the payments as you promised to do, and they subtracted the amount it sold for from your balance. Then they added on the cost of the repossession and sale, and billed you for what you still owed.

   Apparently you ignored them. Now there are 5 years of interest due on top of what your balance was, which apparently adds up to $23,000. If you don’t pay, they will take you to court, get a judgment against you and attach any assets you might have.

   You can ask them not to call your work, and they will stop those calls.

   Also if you want to see the break down on what you owe, ask and they will send you that.

   Comment by oklatom — May 13, 2011 @ 11:26 am

4. 

   A very similar thing happened to my son a few years back. He bought a new car at a high interest rate. He had a lot of trouble getting anything but minimum wage jobs, so he joined the Coast Guard. He contacted the bank and they told him to give back the car to them. He did that. They then took the car to auction and did not get enough to pay off what then loaned him. So they contacted him and said he owed them $5000 more. He was able to negotiate it down to a more affordable amount of money and has since paid it off.
   Talk to the credit company and see if they will be willing to work with you. If they won’t you may want to see an attorney and see what rights you have.
   Good Luck.

   Comment by Chuck M — May 13, 2011 @ 11:26 am

5. 

   "They continued to harass" hmmm, you owed them money, they weren’t harassing you, they were collecting, there is a difference.

   You never paid the amount due (obviously), so they sold the bad debt to another creditor, ones that specialize in collecting from credit criminals. Years can go by before a company really starts getting on your case. They can take you to court for the money, and eventually garnish your paychecks.

   Work something out with them, they will settle for a lot less than you owe. If you don’t, and just let it go, you’ll end up owing more and more.

   Comment by jay — May 13, 2011 @ 11:26 am

6. 

   First off, most of the above is correct:

   1) you do owe the difference after a repo, and they can collect years afterward
   2) they can get a judgment against you
   3) you owe it, no matter how you spin it

   HOWEVER, several things need to be pointed out:

   1) If they are calling your workplace, tell them to stop (send it in writing, certified letter if possible). Tell them your employer does not allow such calls. By law, they must stop once warned.
   2) Texas is a "right to work" state, and they (the collection agency) CANNOT garnish your wages. However, if a judgment is granted, the court can order this.

   Best to work something out before they let it go to court.

   Comment by ElGrande — May 13, 2011 @ 11:26 am

7. 

   As to why – that is in your contract. You had a deal with a lender "Loan me X I will repay Y" and you defaulted on that. Under the terms of your agreement, they are allowed to reposess the car. They sell the car at auction and deduct that from the balance on the loan. You are also liable for repo fees, auction fees, towing, storage and anything else they can imagine. Also, since you have let it go this long, they are allowed to charge you the stated interest on your contract until the loan is paid off.

   When banks repo cars, they try to collect the debt for a while. When they are unsuccessful, they sell the debt to a collection agency. They try a while, then sell it to someone else. The bad news for you (more) is that the clock resets every time a new collector takes on the debt. The bad debt stays on your report for 7 years *after the last action*. So if you pay it off 2 yrs from now, it will still be there for 7 more.

   You can ignore it, in which case they will seek a judgement against you. They are allowed to lien any real property you own such as cars, home, boat, anything that has to be legally transferred. They are also able to garnish wages and bank accounts if a judge orders it.

   At this point, the collection agency that is calling you bought the debt from someone else. Odds are it has been sold a couple of times. You can probably negotiate a settlement and payment terms to get out from under it. Offer to settle at $0.10 on the dollar and get it over with. They don’t have to accept it. But tell them that you will pay that or nothing at all. Take it or leave it. Get this thing resolved and start cleaning up your credit.

   Comment by xx_satanic_mechanic_xx — May 13, 2011 @ 11:26 am

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