Car place out of business

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Car place out of business

by Danielle
(Henderson ky)

The car company that I purchased my car through shut down and dissapeared (went bankrupt) with no warning. Now we have a debt collection agency calling us saying we are to make our payments to them. They are saying we owe more than what we shuould have left plus they are saying we are leasing the vehicle (*have been financing it for two years.) and want 470.00 as soon as the principal is paid off. We had less than 600.00 to pay when the car lot shut down. We sent them two payments and they refuse to send receipts or tell us why our balance is higher. Do we have to pay them? Can they repo our car if we don't?

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Car place out of business

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Apr 07, 2010

collection agency collecting on auto loan
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

This is a rather odd situation. I don't know why the outstanding balances were sold to a collection agency, but regardless you should not have to pay a penny more than your contract states.

You can take one of two approaches here. The first would be to contact a consumer law attorney for advice. That might not be a bad idea. You can contact a local consumer law attorney with experience in debt collection cases. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

The other approach would be to take the collection agency to small claims court and show the judge that they are trying to charge you more than your contract allows. My guess is that as soon as you file your lawsuit they will be willing to settle with you, but if not I can't imagine the judge not siding with you.

Either way, please make sure you document everything - take notes of each conversation with them, keep copies of any correspondence, etc.

Please do let us know how this turns out.

Apr 29, 2010

Thanks Problem Solved
by: Danielle

I called them and told them that I had taken all my receipts and my contract to a lawyer who figured up everything I had paid and deducted it from what was stated on the contract. (And come to find we had overpaid before the car place went out of business by 130.00) They confirmed my address and said our car title would be on the way. We owe them not a penny more. They said there is no need to futher contact my lawyer and I would have the title in two weeks!!!! Thanks for your help. From Very Happy Family!!!

Reply from DebtCollectionAnswers.com: Congratulations! That is fabulous.

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Car place out of business

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Car place out of business