repossesion

[lmckinnon2003]

I had a car repossed 5 years ago, have received no correspondence since then until just recently and a collection agency called stating the I owe large sum of money (late fees, interest and the balance). How do I respond to this. It is confusing me as to why after so long this is showing up.

 

[Michael Wechsler]

Could it be that the company couldn't track you down? You changed addresses? They are looking to go after you for the money it cost them to repossess including the amount you didn't pay on your loan. I'm guessing that if you loaned someone else money you'd know exactly how much is outstanding.

 

[JohnMacek]

at five years old, i would try to work out a settlement agreement with them, with the understanding that the derogatory mark will be removed in it's entirety. I would offer 65% of what is due on the condition that the negative credit mark will be removed. get it in writing (fax or email is ok) and stick to your end of the bargain.

 

[LawMind]

I agree with John. I would only add that, I would check your credit report to see if in fact they have obtained a default deficiency judgment. If not then they may be more bark than bite. If they have gone to the trouble of getting a judgment agianst you, then you know they mean business. In that case, definitely have someone, or you yourself write up a Settlement Agreement and spell out explicitly that you want ALL negative entries concerning that debt removed from all three credit repositories. Only after having an authorized party on the behalf of the creditor agree to and sign this Agreement, should you give them one red nickle. Once you pay them you loose all leverage.

God Speed