Can collection agencies also repo or just the original creditor?

[Michelle Dune]

Jurisdiction

Texas

Car went into repossession in 2016. I got the car back, and then fell into late payments again. So they sent for a final repossession. But they never "found" me or my location because I was hopping from house to house. The original creditor (USAA) eventually sold my loan to a collection agency, and listed the loan as a repossession on my credit, even though I still have my car and it was never taken up.

I just got an apartment and got my first letter from this said collection agency 3/4 years later after putting an address change request through USPS, and I have full intent on paying the money, settling the debt would be ideal, but given the current circumstances, I cant afford to drop that much right now.

My question is, do collection agencies have a right to repossess my car, now that they now my address? Or do I have a cushion of time to save up some money for this settlement?

 

[Tax Counsel]

My question is, do collection agencies have a right to repossess my car, now that they now my address? Or do I have a cushion of time to save up some money for this settlement?

If the collection agency owns the debt then the collection agency is now the creditor and almost certainly succeeded to the security interest that went with the debt. That security interest is what allows the creditor to repo the car. In short, since the collection agency owns the debt it can repo the car. How soon they'd get around to it though is anyone's guess.

 

[mightymoose]

It is possible the vehicle no longer has enough value that they would bother with repossession. It is more likely that if they locate you they would make attempts to garnish wages, but repo is possible.

 

[Tax Counsel]

It is more likely that if they locate you they would make attempts to garnish wages, but repo is possible.

Garnishment of wages is not going to happen. Michelle listed Texas as her state, and Texas is one of the 4 states that does not permit garnishment of wages for private debts. Even if it allowed for garnishment, the creditor would first have to sue and get a judgment for the debt. Assuming that the creditor has not yet done that, then even it the lawsuit were filed today it'd be awhile before the creditor got the judgment. And the creditor might have a statute of limitations problem depending on how long she's been behind in payments and the applicable state law.