Charge off intrest...

I had a reposession (voluntary) of an auto in 1997. I owed (for simplicities sake amounts are rounded off) $12,000 on the car. The bank sold it for around $9,000, leaving an outstanding balance of $3,000. Today, my employer needs me to take care of this account. On my credit report, it is saying the bank charged off/written off the $3,000, however, when i called the bank to setup payment arrangements, they told me I know owe over $9,000!!! They've been charging me interest over the past 4 1/2 years, yet on my credit report (current), it says only the $3,000. Is that legal?!?!?!

The real kicker is the bank which i have this debt from also holds my checking account, and has since 1994. Despite this, I never once recieved a telephone call, statement, or letter stating that the account was open and accruing intrest over the years. I live in Texas. All I want is to make payment arrangements on the origional balance of $3,000.

Please help

-Kaz

[JETX]

Q1) "They've been charging me interest over the past 4 1/2 years, yet on my credit report (current), it says only the $3,000. Is that legal?!?!?!"
A1) Yes.

Q2) "The real kicker is the bank which i have this debt from also holds my checking account, and has since 1994."
A2) IMHO, you are very lucky. Apparently the bank may not be aware that you are also an account holder, or they would have automatically withdrawn the disputed money from your account.

Q3) "All I want is to make payment arrangements on the origional balance of $3,000."
A3) Of course you do. And the lender only wants what the law says he can get, which is the unpaid balance, plus attorney fees, plus auction costs, plus court costs (if any), plus interest.

In any case, you have the right to get an accounting statement of the amounts claimed (per the Fair Debt Collections Practices Act at [url]http://www.ftc.gov./[/url] ).
Get an accounting, check it for errors and start paying on the debt.