outstanding vehicle loan

May 03, 2011

Outstanding Vehicle Loan
by: Debtcollectionanswers.com

If you have defaulted on your vehicle loan it would be highly unlikely that the lender would not have already repossessed it. Therefore, I assume that the collection agency is trying to collect the amount of the loan deficiency from you. The deficiency is the difference between what you owed on the loan at the time your car was taken from you plus the costs of repossessing and selling the car and the amount that the lender sold it for.

The debt collector can sue you for the deficiency amount and if it wins a judgment against you it can try to collect on the judgment in a variety of ways. For example, it can get permission from the court to garnish your wages (There are a few states where wage garnishment is not permitted.), take money from your bank account, or put a lien on one or more of your nonexempt assets (assets that are not protected from your creditors under the law of your state). Meanwhile, the fact that you defaulted on your vehicle loan and that you owe the deficiency is probably in your credit files, which means that that information has significantly lowered your credit score.

If you want to avoid a lawsuit, the debt collector may be open to letting you pay off the deficiency over time, assuming the two of you can agree on the amount of the payments. If you are able to reach an agreement on a payment plan, don't pay the collector any money until you get the terms of the agreement in writing. If you do, pay the collector with certified bank checks or via Western Union, not with personal checks. If you pay with a personal check and the debt collector is unscrupulous, you run the risk that the collector will use your account information to access the funds in the account.

Best of luck resolving your problem.

outstanding vehicle loan

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