Overcharge on Repossession

Jun 01, 2009

Repossession overcharges
by: Gerri

Jimmy,

I would encourage you to consider a couple of things here:

First, I assume you have followed the steps we outline in the book to request verification of the debt. If not, and it's not too late to do so, I would recommend you take those steps.

Next I would suggest you talk with a consumer law attorney or your state attorney general's office to find out whether the charges they have assessed are legal. It's not unusual for those to be overinflated. If they are overinflated, you may have a case against the collection agency.

If the charges are permissible, then you need to start really negotiating with the collection agency. I know they are saying that you have to pay the full amount, but if you cannot, they will have to be realistic. (After all, if you could have afforded the full amount you wouldn't have ended up losing the truck!)

I'd recommend you read the section on negotiating in Chapter Two of our book and prepare yourself to negotiate. It may not be easy, but if you know what you can afford and stick to your guns, you should be able to come to an arrangement that works.

Keep in mind this is a large enough amount that they could decide to file a lawsuit against you, but if you are "judgment proof" then it won't do them a lot of good to take you to court. There would be nothing to collect if they did. If you are judgement proof and can make that clear to the collection agency, that should give you some negotiating leverage.

Good luck and let us know what happens!

Overcharge on Repossession

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Overcharge on Repossession