What to do when I do not own the car any more?

(Seattle, WA. USA)

I bought a car which cost me some where between 11 to 13,000 thousand dollars. I was making the payment all right then came all of the sudden to a dead end in my family where I had to spent over three thousand dollars. That really put off my payments for well of two months, in an amount of $1,188.10, incuding accrued late charges.

I tried to explain my situation many times to the agents which the loan came from, but they repossessed the vehicle anyway, when my balance was about $6,672.15 and sold the car at an auction for about what I owe. This happened just last November when there was this financial crisis, they then bullied me for $4,000.00 plus something. They then called me to offer me some settlement of $2,000.00 and that time of November I have just got back my job. I wasn't making much but I was planning to put this ordeal behind me so I said I could pay this within 2-pay period and the one I talked to she said its fine.

The first month I couldn't come u p with the $1,000. I had paid $800 thinking the follow month pay to another $800, then $400. After I had paid $1,600.00 I got a call from them saying I owe $2,400 this made me mad so I did stop the payment.

Now after over three I then got a call saying I owe this $2,400, this time there was a gentleman behind the phone when I told him I do not owe this amount but then all I am left to pay is $400.00 and that I could end of september he accepted my check over the phone and the check cleared my account at the end of September.

Now in November they are calling back again to pay this $2,000.00 dollars. I do not understand?

Comments for What to do when I do not own the car any more?

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Dec 15, 2009
negotiating payoff on car loan
by: Gerri

Ugh. You've experienced some of the worst debt collection traps we warn against in our ebook. Please don't take this as blaming you - I am sure you were just doing what you thought was right. But you can't be too careful when it comes to dealing with debt collectors.

First, we recommend you never agree to settle a debt without a written agreement from the creditor or collector that clearly states the terms of the agreement, including the fact that if you pay the negotiated amount the debt will be considered paid in full. We recommend consumers never, ever pay toward a settlement without this agreement in hand.

Second, we warn against agreeing to pay more than you can afford. No matter how much a debt collector pushes, if you agree to pay more than you can afford then you will just set yourself up for further trouble.

Third, we recommend consumers never give debt collectors access to their bank accounts, either through personal checks or by agreeing to an automatic withdrawal. This is very risky.

I understand this must be horribly stressful for you. From the collector's perspective though it's going to be your word against theirs.

I would suggest you talk with a consumer law attorney with experience in debt collection cases. Learn how to get low cost or FREE legal help with your debt collection problem here. If the debt collector has broken the law in trying to collect, then you may be able to resolve this much easier than if you try to go it alone.

If it turns out they can't help you then come back and post a comment and we'll offer our suggestions.

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