Auto Repossesion

[txbtyblond]

What is the name of your state? Texas

I purchased a car in 1995 - it was repossessed in 1996. The finance co. sold the car at auction and it left a small deficiency. The finance co. charged off the balance. It remained on my credit report up until recently - now, I have this other co. calling me and sending me letters saying I have to settle the balance w/ them. They say that "per my contract" it was assigned to them and I must pay them. They also put a NEW recent chargeoff on my credit report for the balance. My understanding was that the balance w/ my original finance co. would remain on my credit report for 7 years and then drop off. I have since obtained auto financing from several major sources since then. Now After several years of cleaning up my credit report this co. puts a brand new charge off on my credit report. I have NEVER signed a contract w/ this new co., borrowed money from them and they are claiming I must settle w/ them or suffer the consequence of having a charge off on my credit report. What are my rights? I've been declined for credit recently due to this co. putting a new charge off on my credit report.

 

[empowerment]

It seems that your original loan was sold to another collection agencies. And of course they are going to come after you for the money that is owed. However, Here are some suggestions to consider:

1. Send them a validation letter to prove that you owe this debt.
2. You can also dispute this item with the CRA (Credit Reporting Agencies as well) However I wouldn’t do both at the same time.
3. Check to see what is the SOL in your state (Status of Limitation to Collect on a debt)

I am sure with those few suggestions; you will be able to find some level of comfort.

JB


As a reminder, always communicate with either parties by certified mail