Repo in Alabama

I recieved a letter trying to collect 12,000 for an auto loan. I was laid off from my job and struggled to pay, but finally had to let the car go back. The loan was a high interest. I paid 450 a month for around 4 years. Then I get a call wanting the 12,000. Apparenlty even after the repo, they still want the full price. They offered to make an arrangement if I could give them smth like 3000, they would call it even. If I had had the money I would have taken the deal, but I didnt. That was about 2 years ago. Then a few weeks ago i get that letter from Simms. Then today I got an automated phone call from them. I havent returned the call. I am in alabama. I do not have 12,000 obviously to give to some collection agency for a car I dont even possess anymore. The crazy thing is, after paying 450 for 4 years, they still say i have a balance that high. Its because they would add whatever crazy interest and penalties for late pays etc. My balance actually went up everytime I paid rather than down. How can they get away with this crap. I am a single mom, working and barely making it. I am just now starting to see the light of day and now this. I dont think I can take any more, and am considering bancruptcy. Does anyone have an suggestions before I resort to that? I have 2 old cars, because neither runs worth a darn and I have to have a backup for one when the other is down. I have heard you cant have more than one car if you file bancruptcy. I am about to not be able to take care of my babies and Im so scared. All over some horrible car loan, that I had to take out to begin with becuase I had no way to work and it was my only option. My luck seems to be so awful. I realize I owe smth on this loan (even though technically I probably paid it in full over the 4 years I did pay). but the full 12,000 and I dont even get to keep the car? I let them take it, because I couldnt pay for it. If I had known that they were going to charge me the full price anyway, I would at least have kept the car, so I had something decent to get me back and forth to work, to be able to pay the bill, you know? Any help would be appreciated, an attorney seems like my only option now, and I cant even afford that.

When was the car sold at auction and a deficiency balance accrued? What state do you live in? You should only owe the remaining balance after the car was auctioned. If it was sold more than 4 years ago, it may be SOL.

the car was sold 2 summers ago so in 2007 apparently but they never sent me any paperwork (citi financial had the loan, and they bought it from some other fianancier, so I never even had an agreement with Citi, they just took it over, thats when my loan balance started getting nutty). I have no idea what the deficiency balance is, other than they say it is 12, 000. I bought the vehicle for 15,000 paid for 4 years, gave it back and they say I still over 12,000. Never got any paperwork on the sale like I said. I think its too late to send a dispute letter though, I will have to check the date on the letter. I just didnt think it would do any good to dispute it. Should have, but...

oh and I live in Alabama

DebtCruncher is our resident repo spec ialist so I will give him a chance to chime in. Something stinks about this though. A consumer is supposed to be notified w/in a certain time frame when the deficiency balance is realized. Repo laws vary from state to state but not by that much. Hang tight and keep checking back for his response. Also, I'm going to split this off into it's own thread in the Collection forum Under topic Repo in Alabama.

ok thanks for your help. They called me after the car was repoed, and said that the balance was so and so and that they would settle for the 3,000, but I didnt have that. No one ever sent me any paperwork though, just phone calls. I am wondering if an attorney would be able to get them to settle for that again. I am sure that is the actual balance left after the sale, or they would be willing to settle for it. (minus all the overblown fees and inflated interest that is.) in other words, that is probably all that I really actually still owed of the principle. I dont expect to get of a debt that is fair and actually owed, but I do want to onoy have to pay what is fair and reasonable considering. After paying for 4 years, and then relinquishing the car, I just dont see how I can still owe 12,000.

Have you pulled your free credit reports at www.annualcreditreport.com to see how it is reported?

no, I imagine it is reported as the 12,000 no doubt?

pull them and find out for sure