Settlement with a collection agency
Date: Tue, 01/30/2007 - 10:49
Isn't the car auctioned by your car company? I believe this amou
Isn't the car auctioned by your car company? I believe this amount put by the debt collector is disputed. Get the debt validated by the CA.
They can charge interest on the account if in your original loan
They can charge interest on the account if in your original loan documents it says that they can upon default. But that should be in your contract.
Send a debt validation letter to the collection agency, asking them to spell out to you how they are coming up with the total..interest rate, original balance, etc. Also proving that they actually are authorized to collect on the account.
Find out what happened with the car as well--If it was auctioned, etc. You would be responsible for any balance owed after they sold the car..example, if you owed $10,000 and they sold the car for $4,000 You would still owe $6,000...
You can usually get them to stop with the interest and make payment arrangements. It can take some negotiation though. Offer them a lower amount than you can actually afford to pay...Give yourself room to move. Do this AFTER they prove that you owe the debt to them.
Good luck! :)
