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The Mystic Wave
The Mystic Wave, Paralegal
Category: Legal
Satisfied Customers: 427
Experience:  30 yrs. exp. in the legal profession. Specializing in Personal Injury, Criminal, Civil & more.
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Car collection agency

Customer Question

Auto loan charged off in 1999 & no one ever repossesd car, now collection company wants to settle but was unaware of this vehicle still sitting on my parents property for almost 5 years undriven, what our my options since I am so close to the 7 year statue of credit roll off or should I make a settlement w/ this third party collection comp?
Submitted: 11 years ago.
Category: Legal
Expert:  Linda Thompson replied 11 years ago.
Did the company want the car when they heard you had it? Have you got the title?
Expert:  Linda Thompson replied 11 years ago.
If you pay on the account now the time it will show on your credit bureau report will start over from date of last activity which will be the date you pay the collection company. If you have a charge off status this would likely continue for 7 more years. Unless you are thinking of making some sort of a purchase that requires all derog credit to be satisfied it might be best to just wait out the small amount of time left before it is deleted from your file. One caution these sort of things have a way of staying around by being resold to new collection companies which report as a collection item again. I have seen files with 4 or 5 reports to same credit file for an item charged off long ago. This makes it appear that there are many more charged off accounts than just the first one. Let me know if you require more info.
Expert:  The Mystic Wave replied 11 years ago.

Greetings:


Did the collection agency file a lawsuit and was judgment entered in this matter?


Please let me know.


Thank you.


Bright Blessings.


Peace, Love & Happiness,


The Mystic Wave

   
Customer: replied 11 years ago.
Reply to TheMysticWave's Post: No judgement or lawsuit but this is 3-4th collection agency and they (Calvary Portfolio) states they are the last attempt to settle before legal action...the loan was charged off by Bank of America in 1999 (approximately) and didn't want the car (as I voluntarily wanted to repo) Hence, the car has sat on side of parents house since 1999 (only driven 3 years). This collection agent was shocked to hear i still had the car as they function after a repo & auction amt deducted from balance. I do not have any assets or $ to speak of if I was taken to court over this. I just think there could be a loop hole in their approach as they were so unaware of car location when I asked about who has Title to it. They said their "client" has it..supposedly.
Expert:  The Mystic Wave replied 11 years ago.

Greetings:


Thank you very much for responding and providing more information - it's appreciated.


The Fair Debt Collection statute of limitations in which to collect is 6 years for a "written contract" - thus, it appears that they will file suit in order to protect their rights - and, if so, they can obtain judgment against you. This would mean that once judgment is entered, the collection company can garnish wages (if you are employed), they can obtain bank levies (to seize any and all of your bank funds) - if you own any property (although you state you don't have any assets) they can place liens on property...they will also claim the car, of course. Also, please note that should you be married, they can go after your spouse, securing wage garnishment, etc.


In addition to the original monies owed, interest accrues daily at the rate of 10 to 18 percent (from the date of charge off to present - til it's paid in full). Therefore, if you are able to pay now - and wish to resolve this matter, you should attempt to negotiate with them. Some agencies will waive the interest if the initial amount owed is paid in full - thus, you would save much money.


I would suggest that you pay them now, otherwise, as mentioned above, they must take action in order to protect their rights (statute of limitations will run within months, perhaps sooner). They do have the right to the vehicle - however, should you decide to pay in full now you may (I'm not saying for certain) have the right to keep the vehicle - but this is something that you can discuss with the bank or an attorney. I have worked in law firms wherein this has happened - and the party was allowed to keep the vehicle...but, I'm in California.


If you have any further questions, please do not hesitate to let me know.


Bright Blessings.


Peace, Love & Happiness,


The Mystic Wave


Arizona Collection Agency Laws

 

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