What is the name of your state?
Virginia
I purchased a 1998 Ford Taurus from a Ford Dealer in 1999. I had been paying the monthly payment on the account as agreed until 2002. The engine in the car became inoperable. I stopped making payments and returned the car to Ford Motor Credit (finance company of contract). Ford Motor Credit sold the car for $150.00. The balance owed on the contract was $3,000 or less. Ford Motor Credit offered to take $2500.00 and I wasn't able to accept the offer at the time due to financial restraints. I recently received money from my income tax refund and contacted Ford Motor Credit to offer $3,000.00 to settle the contract and they told me they are unable to accept the money and that the account has been turned over to an attorney to contact him. So I contacted the attorney and was told that $7,000.00 was due on the account. Well I had previous arrangements with said attorney to pay $150.00 a month, which I had been doing. However, the attorney wouldn't accept the $3,000.00 offer either and wanted the $7,000.00. I don't have that kind of money. This has already been entered on my credit report as a reposession. Can I just stop paying the $150.00 a month without the attorney being able to garnish my pay and has the statue of limitations run out on this contract?
Virginia
I purchased a 1998 Ford Taurus from a Ford Dealer in 1999. I had been paying the monthly payment on the account as agreed until 2002. The engine in the car became inoperable. I stopped making payments and returned the car to Ford Motor Credit (finance company of contract). Ford Motor Credit sold the car for $150.00. The balance owed on the contract was $3,000 or less. Ford Motor Credit offered to take $2500.00 and I wasn't able to accept the offer at the time due to financial restraints. I recently received money from my income tax refund and contacted Ford Motor Credit to offer $3,000.00 to settle the contract and they told me they are unable to accept the money and that the account has been turned over to an attorney to contact him. So I contacted the attorney and was told that $7,000.00 was due on the account. Well I had previous arrangements with said attorney to pay $150.00 a month, which I had been doing. However, the attorney wouldn't accept the $3,000.00 offer either and wanted the $7,000.00. I don't have that kind of money. This has already been entered on my credit report as a reposession. Can I just stop paying the $150.00 a month without the attorney being able to garnish my pay and has the statue of limitations run out on this contract?
My guess is that you will have to at least pay the balance on the loan. After sometime, the lawyer will probably contact you and offer to settle with you for a lower amount that will be less than the $7,000 he is trying to drain from you now and may possibly be less than the $3,000 balance. However I am in the same boat you are now with a 98 Chrysler purchased in 1999. Who knows we may both get sued! It would be helpful if we could both get some info on Repo laws for our states.