Repossesed car

[Scorpio2001]

My wife and I bought a car 5/12/97. Due to financial difficulties, the car was repossessed on 1/5/98. The only notification we recieved at that time was a letter stating we could have the car back if we could pay all monies owed up to that point. Well we could'nt, and it was left at that,with no other correspondence from the financial institution,attorney,or collection agency. The amount owed according to the financial institution that financed the auto, was $9617.00, the amount that was reported on my credit report on 5/98. We have a piece of paper from the collection agency that shows that the repossesed auto was sold for $7445.00 on 1/26/98. Also this statement shows,(handwritten in) the amount of $4774.12 that we owe. The numbers do not add up, and we have,through registered mail, requested all documents regarding our file, to no avail up to this time. Our first contact was by phone at that time we verbally requested documents pertinent to the situation and I was told "you should have kept your rcords,I'll try and find them" and was persistent about sending money to them, any amount just as long as it was something. Up till now we still have not recieved any documents we have requested, nor even an answer to our request for said documents. What laws if any may the collection agency have violated, what is the next step to take? Is there more that I should do? I do not dispute the fact that I owe monies, I do in fact dispute the amount, and it seems that the collection agency is unwilling to help me help them get the money owed. Also the original lender per the collection agency is out of business,who, other than the collection agency would have all paperwork that I can request concerning this matter?

 

[TimC]

The discrepency comes from interest and fees. They are likely charging you the cost of repossession, the auction fees (if any), the cost of preparing the car for auction, ad nauseum. In other words, they are charging you for every course of action that was necessary on their part to attempt to collect on your debt.

 

[JETX]

I will try to clear up some of the issues that you asked about:

First, TimC is exactly correct. When a car is repossessed, the lender incurs extra costs over and above the unpaid balance. Some of these are: The towing fee, the repo fee, auction costs, legal expenses, etc. They are all added onto the unpaid balance. Then, the NET recovered from the auction is subtracted from this owed total, leaving the amount you owe. On top of all this, your note still collects interest until it is paid. That might help explain the differences in amounts.

As for the rest of your items:
1) Though most lenders keep meticulous records on their end, they are not required to keep your records for you, that is your responsibility. As such, they MIGHT be able to supply some payment history, but it would only show their end of the transaction, not yours. For example, they would show the date the payment was posted to the account, not the date that you sent it. Also, their amounts might be a little different due to late fee deductions, etc.
2) Your message says, "the collection agency is unwilling to help me help them get the money owed". They have no obligation to help you. Their only obligation is to get money from you, and the more the better. See, they ONLY make money when you pay (they get a percentage of the amount received). As such, they usually have very little documentation of the note, just the dates and amounts in their computers.
3) You are in an unenviable position. The debt collector is the LAST person you should be talking to. For many reasons, ALL correspondence should be done DIRECTLY with the original creditor. In your case, they are no longer around. My first question is, "How do you know that the debt collector has the right to pursue the debt?".

Now, with all that out of the way... my suggestions:
First: Read the FDCPA (Fair Debt Collections Practices Act) located at http://www.ftc.gov. It will let you know what your rights are, and what 'they' cannot do. You will see that you have every right to demand a full accounting and proof that they have the right to collect the debt (this is particularly interesting since you say the creditor is out of business). Make all demands for information in writing, certified RRR.
Second: Once you get your information, read it and determine it's accuracy. If it is correct (and since you acknowledge at least some debt), contact the CREDITOR (or their new owner) and negotiate payment of the debt. One of the negotiation points is the removal of any negative credit record. Get the final agreement in writing. Pay the debt and move on with life.