Charge off collections.

[Startin2sweat]

What is the name of your state (only U.S. law)? Washington

This is my first post, and I'm in a dilema and don't know what I should do.
In 2002 I was laid off due to a certain tragedy, and I had to leave the country. My car was returned to the finance company under their advice with a letter explaining the circumstances.That was the last I heard from them.
I returned here in 2004, and last week, I applied for a mortgage, and found out that the finance company has a charge off in collections. In Sept 08 they sent it to a collection company. This is the first I heard about this, and I have never received a letter, bill of sale on the vehicle, or any other documents about any debt. (They had my permanent UK address on file.)
The mortgage advisor told me to contact the credit union and find out what that was about. The credit union told me to contact the collections people since it was out of their hands now.
I called them up, and they told me I owe a rather rediculous amount because of the loss the car took at auction, and I am liable for the difference plus interest. This is a 5 figure amount, that I really can't afford to pay. They took down my number and address, and I told them I'll have to discuss this with my wife to find out about financing this debt.

Do they have any rights to do this, since I was led to believe the debt was repaid when I handed in the car, and I have never received any letters or documents stating otherwise?

Sorry it's long, but I'm tearing my hair out here.

Thanks in advance.

[racer72]

You have what is called a deficiency. Just because you returned the vehicle does not mean you completed your contractual obligations. The only rights you have is to pay the debt you legally owe. I would also suggest wearing a hat.

[Startin2sweat]

Thanks.
But how do I know if this amount is true, since I have not received anything in writing from anybody? Should I request a price break down and a copy of all evidence on file, before I start to negotiate, assuming I can negotiate on this figure.
Sorry for being such a noob.

[racer72]

Send a debt validation letter, CRRR, and ask for the info. All that legally has to be provided is proof you owe the debt but they may supply the additional info. Google "debt validation letter" for examples.

[seniorjudge]

Do they have any rights to do this, since I was led to believe the debt was repaid when I handed in the car, and I have never received any letters or documents stating otherwise?

Who or what led you to believe this?

[Startin2sweat]

When I called up the finance people, I explained the situation, and since I had established regular payments, never late, and the car was still worth more than I owed, the woman I spoke with told me if there was anything owed, I would be notified of the amount.
I never was, not even a copy of the bill of sale.

[Startin2sweat]

Quick update.
I sent a debt validation letter CRRR, and told the guy I would contact them once I have received proof of debt.
He called me last week, but I still have not received anything. He said he sent it.
I'm assuming he would have sent it crrr, as I did with my letter, so they would know that I haven't received it yet.
I'm just wondering, if I don't receive anything, what would be my next course of action?