Duplicate collection legal?

[WillF]

What is the name of your state? California


*** I realized after posting, that I placed this message in the wrong thread. My Apologies for the double-post***


About 5 years ago, a car I purchased from Company A was repossessed. Recently, I obtained a copy of my credit report, and discovered that there was a collection action from a wholly other car company (Company B), dated last year with whom I had never done business.

Upon contacting Company B, I learned that they had bought out Company A and they had revived my account and were pursuing the balance of the unpaid note at the time of repossession.

So now it appears to potential creditors that I have a recurring history of sloughing off car payments, demonstrating a serious inability to handle long-term financing obligations.

My question is, are they allowed to do this? I mean, when the car was repossessed by Company A, the matter was closed. I never heard from them again, and even my credit report indicated the repo as the conclusion of the failed arrangement. Wouldn't some form of creditor double-jeopardy apply here? It just seems foul that I am having to pay for the same mistake twice. The original incident is only a couple of years from dropping off my record, and my recent efforts to rebuild my credit are getting sabotaged by this.

I just need to know.. do I have any rights here, or am I going to be a victim of the system?

[Debt Guy]

Q. Upon contacting Company B, I learned that they had bought out Company A and they had revived my account and were pursuing the balance of the unpaid note at the time of repossession.

A. Nothing illegal about that. Happens all the time.

Q. My question is, are they allowed to do this?

A. Yes.

Q. I mean, when the car was repossessed by Company A, the matter was closed.

A. Well, it really was not closed if there was a difference between what you owed and what the sold the vehicle for. Which there probably was. That difference is called a deficiency and represents what you still owe.

Q. I never heard from them again,

A. They are not required to contact you.

Q. and even my credit report indicated the repo as the conclusion of the failed arrangement.

A. I doubt your credit report showed this as the conclusion of anything. If it showed the repo, then that was just the status as of a certain date.

Q. Wouldn't some form of creditor double-jeopardy apply here?

A. I don't think so.

Q. It just seems foul that I am having to pay for the same mistake twice.

A. Again, if I understand everything correctly, the one mistake is still the same mistake. Have you really paid anything on what you still owe?

Q. The original incident is only a couple of years from dropping off my record, and my recent efforts to rebuild my credit are getting sabotaged by this.

A. Has the new creditor reported a different date of last activity? If so, that is illegal reaging. Everything should track back to the original debt.

Q. I just need to know.. do I have any rights here, or am I going to be a victim of the system?

A. Yes, you have rights. But, the creditor also has rights. Your best course of action is self-education. The Fair Debt Collection Practices Act governs behavior of 3rd party collection agencies. The Fair Credit Reporting Act governs how debts are reported on your credit report. You can download both at [url]www.ftc.gov[/url]. Your state law governs the statue of limitation for collection of a debt.

Perhaps I am off-base here. I get the impression that you thought all was over and forgiven when they repo'ed the car. Not so (at least in most cases). You still had a loan agreement that governed the amount you still owe and I suspect that you still owe money (the deficiency). The creditor can use all legal means to recover what they are owed (which includes reporting on your credit).

The issue that the new owner of the debt is reporting is not per se wrong. Now, they could be reporting the facts wrong and, if so, you have the right to dispute those facts.

Make sense?