Voluntary REPO

Several questions:

1) Is this your's or your son's account?
2) When was the car returned? Have they provided you with an accounting of the sale and deficiency balance due on the account?
3) Who is collecting on the account, the finance company or a collection agency?

It is my son's account
The car was returned in July 2008
The car was auctioned they got according to the CA $7800 and they added to the deficienty $995 for handling paperwork and other fees, the deficiency is for over $10,000
A collection agency is the one collecting.

Deficiency? I never heard that about a repo issue. I'm not an expert about this, I did have a repo issue some years ago. Do you mean the "deficiency" is the difference of the amount (what the car is worth and what they sold it for?) Also.....I know the man said he would not accept $50.00, however...I would think he would HAVE to accept what you can afford to pay him. Whatever you can pay him, send it Certified Mail ( so he has to sign for it) and keep all of your records.

Technically they don`t have to accept what you can afford to pay them" its not like a medical bill" and can sue you if you don`t work something out with them. However with that being said if it gets to the point where they would sue you it does look a lot better to have made an effort to pay than to have made no effort at all. The judge might have more leniency since you at least tried.

SD Charges, the balance that he owed was about $16,000 and he could not affor paying insurance plus the car pmts since he was cut down in hours at work so he decided to turn the car back they (CA) said they sold for $7,000 plus and then they added $995 for fees, etc. then they subtracted the $7,000 from the $16,000 and there is a balance (deficiency) of around $10,000 plus. Three times he has offered to pay $50 per mo. but Mr. Silva refuses to accept, he wants the full $10,000 plus in full.

MOBILE......if you DO send what you can, you mean they don't have to accept it? Even if they sign a Certified Letter/Payment, they can STILL say, "I won't accept it?" On different debts I've had CA's tell me they "wouldn't accept this or that." Well...............I sent what I could afford and they accept it.

Applying a payment to an account does not constitute a payment arrangement per se. They can still go ahead and sue him.

CAs/creditors won't usually refuse a payment -- ie they'll take $50 and credit the account. It's just that they can and will refuse to accept partial payments as being acceptable arragements.

Here, ~$10K is the amount owed. Generally on default, the full/entire balance becomes due. So CA demands full payment of $10K. If they demand full payment, and you only send $50, then they can still file a lawsuit. That's what mobile means.

Ok..DEBTCRUNCHER...I understand. When I've sent what I could afford, they DID credit it. But...they can STILL take you to court, even though you're paying SOMETHING?? I guess I've been 'blessed' that no CA has taken me to court. I've had a few that said they were gonna sue,however......that was years ago. I DO have a question. If a CA/company says they "will sue," don't they have a certain time frame to do this?

Yes, if you're not paying "enough" they can still sue.

However there is a point of diminishing returns on their end. IE they can demand the full balance, but what might they get by suing? For example you might be paying $50/month willingly; where if they go in for a judgment/garnishment, they might only get $40/month from your paycheck. Or you might go bankrupt once they file suit. So many times they actually will take what you give them because they don't know how a lawsuit will actually result -- "something is better than nothing."

Quote:

You were talking about Wage Garnishments. SOME states don't allow this. I live in PA, and the only thing that can be taken from pay chacks is defaulted student loans, child support, etc. However.....REALLY, though, how can a PDL be taken from a check if they are illegal in the first place?

We contacted an attorney and filled out and faxed back the information they required regarding the way the CA was contacting at work even after the c&d letters and today the attorney called and my son has a case and they will take it, all attorneys, court fees will be charged to the CA. I will keep you all posted on what happens. He will start sending the $50 monthly. Thank you all for your help!

I'm glad you're getting things worked out. All of the fees will be "charged to the CA?" Good.............it's about time a CA pays for something. LOL

The fees will be charged to the CA provided they agee to settle or if the court orders it. This is usually the case...but you have to win first!!

That's true. Hopefully they WILL agree with it. At least, the person is trying to deal with them and pay off this debt.

Heard from attorney my son is getting $750 from CA and the CA paid the lawyers fees, etc. they have not bother my son or heard from anybody! Thank you for all the help!