Been paying into a scam?

[gryndor]

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

I bought a car many years back. The breaks failed one day and I wrecked pretty bad. I was in the hospital for some time, and I guess in all the drama that ensued I forgot about the car, which was essentially repoed from the junk yard and that's entirely on me. My fault.

Fast forward many years, and I'm trying to buy a house. This car and the finance company hit me for a $9k mark on my credit report. I called them and set up a payment plan of $100 per month, and I've been paying that faithfully for two years.

Trying that buying a house business again and I called them for proof that I've been making my payments, a letter or something saying I was in good standing, such as it is. They told me that though they've been collecting my payments and giving me confirmation numbers, those numbers aren't saved in their system and they can't pull up my payment history.

That scared the crap out of me. Had my money been going into a black hole? I asked what the payoff amount be that very day and say said over $15k. I wrote them a CRR letter asking for a full accounting of the debt, how it was created, compounded, and any progress my payments have made. They haven't responded and it's been over a month. I called to follow up and they sounded really confused like they've never had to create that kind of document before. I asked for her supervisor and that person said she'd have to check to see if they "even did that."

I'm being scammed, aren't I? I've just thrown away $2400+ over the last two years if that's the case. I know I biffed the car and created a debt but I seem to be paying into a black hole of some scammers that will never let go and have the ability to screw over my credit thoroughly.

What can I do? If they don't respond to my information demand, what kind of recourse do I have? Have I screwed the pooch by making payments and validating the debt even though I had no idea that this was a never ending blood-letting?

 

[adjusterjack]

If they don't respond to my information demand, what kind of recourse do I have?

None.

Have I screwed the pooch by making payments

Maybe. Did you make a written agreement for the payments?

California Code of Civil Procedure Section 360. No acknowledgment or promise is sufficient evidence of a new or continuing contract, by which to take the case out of the operation of this title, unless the same is contained in some writing, signed by the party to be charged thereby, provided that any payment on account of principal or interest due on a promissory note made by the party to be charged shall be deemed a sufficient acknowledgment or promise of a continuing contract to stop, from time to time as any such payment is made, the running of the time within which an action may be commenced upon the principal sum or upon any installment of principal or interest due on such note, and to start the running of a new period of time, but no such payment of itself shall revive a cause of action once barred.

If you put your agreement in writing you started the Statute of Limitations all over again.

If you just agreed on the phone and started paying then, no, the SOL didn't start all over again.

Depending on what the original debt was all about (explain) and the date of default (reveal it) you may be home free on the debt but it will still remain on your credit report for 7 to 7.5 years from the default.

By the way, creditors have absolutely NO obligation to report payments to credit bureaus or provide receipts or evidence of payment.

 

[Zigner]

If you put your agreement in writing you started the Statute of Limitations all over again.

I disagree...the OP made a new agreement to pay the money. That agreement doesn't have to be in writing.

 

[gryndor]

Fair Debt Collection Practices Act

But what about the Fair Debt Collection Practices Act?

 An explanation of what the money owed is for.
 An explanation of how the amount owed was calculated.
 Copies of any agreements signed obligating you to pay for the debt.
 Provide copies or other verification of any judgment (if applicable).
 Prove that federal and state statute of limitations applicable to the debt have not expired.
 Identify who the original creditor of the debt was.
 Provide verification that the collection agency is licensed to collect in my state.
 Provide their license numbers and registered agent.

 

[Zigner]

But what about the Fair Debt Collection Practices Act?

 An explanation of what the money owed is for.
 An explanation of how the amount owed was calculated.
 Copies of any agreements signed obligating you to pay for the debt.
 Provide copies or other verification of any judgment (if applicable).
 Prove that federal and state statute of limitations applicable to the debt have not expired.
 Identify who the original creditor of the debt was.
 Provide verification that the collection agency is licensed to collect in my state.
 Provide their license numbers and registered agent.

What is this tiny, tiny snippet supposed to show? Really. If you think this somehow changes my answer, please explain why...

 

[gryndor]

Your message was about statue of limitations. I am aware of that. The fair debt act says that if the creditor doesn't or can't comply then the debt gets erased from your credit report because they can't validate it. Doesn't that mean they're on the hook to provide some kind of accounting? As opposed to the first person's comment that said the creditor is under no obligation to do so? I'm not trying to be confrontational here, just trying to understand.

 

[Zigner]

Your message was about statue of limitations. I am aware of that. The fair debt act says that if the creditor doesn't or can't comply then the debt gets erased from your credit report because they can't validate it. Doesn't that mean they're on the hook to provide some kind of accounting? As opposed to the first person's comment that said the creditor is under no obligation to do so? I'm not trying to be confrontational here, just trying to understand.

All they have to do to "validate" the debt is confirm that it is a debt that you owe. At this point, no accounting is required. If/when they sue, then, as part of that process, they will need to provide an accounting (depending on how you handle the suit.)