Car repo

[thomas975]

What is the name of your state? TX

Hi, my brother financed a car with my name. What happens was the car was stolen and the insurance did not give him enought money to pay the lender off. He had the title so the insurance company gave him the settlement for the claim. He told the auto lender this and they told him he needs to just keep paying his car payment and he will be ok. So now it is basically a unsecured loan. Now that was a couple years ago and he recently lost his job and cant pay it. I also cannot pay it cause i am almost over my head with my own payments. I have not been able to pay it for the last few months. I wanted to post on here and get some suggestions on what I should do? I tried calling them and working something out but i just get customer service reps who tell me to pay or else. Any suggestions would be appreciated.

 

[dtown7]

I would suggest that you document everytime you contact them. If you do not they can send it to collections and it will reflect poorly on your credit if it's not already. I would send them a letter stating your situation and the amount that you can pay. Here is a sample letter that you can send to them by certified mail/return receipt. Please keep copy for your own records. I hope this helps.

Your Name
Your Address


Attention: {name of collector}
Name of Debt Collection Agency
Address

RE: Your {letter dated} or {phone call on date} reference account #: {place account or reference number here}

Dear Mr./Ms. {Collector's Name}

I am not disputing this debt however, given my current financial situation, I am unable pay the amount you are requesting.

I am able to make (monthly, weekly, every two weeks etc.) payments on this account to your company in the amount of $ _________. I promise to mail payments every {day of week, or date of month} until my account is paid.

As a show of my good faith, please find enclosed my payment in the amount of $________. Please note that accepting (cashing) this payment constitutes a payment agreement between us according to the terms outlined above. If you refuse my offer I expect the enclosed payment along with written confirmation that you refuse my "good faith" offer to resolve this issue be returned to my above address.

In accordance with the Fair Debt Collection Practice Act, Section 805(c): Ceasing communication, please do not contact me again accept for the following reasons and then, only by official mail:

to advise me that further efforts are being terminated;
to notify me that you may invoke specified remedies;
to notify me that you intend to invoke a specified remedy.
If my financial situation improves, and I am able to increase my payment, I will contact you immediately.

Thank you for understanding.



Sincerely,





Signature here
Your Printed Name

 

[JETX]

Any suggestions would be appreciated.

First off, the post by 'dtown7' is less than useless. All this person did was cut-n-paste a suggested letter from: http://www.fair-debt-collection.com/Disputing_Collections/payment-agreement-letter.html
and made it appear as his own wonderful 'work'.
And he didn't even get that right!!! The letter he provided is a 'debt agreement letter' where you promise to make payments to a 'debt collector!! You are not only NOT making a promise to pay, but your situation is with the creditor, NOT a 3rd party collector. The difference is HUGE in that the creditor has NO obligation to abide by the FDCPA... that is noted in the letter!!

Also, if you look at the letter itself, it contradicts itself. In one place it says: "If you refuse my offer I expect the enclosed payment along with written confirmation that you refuse my "good faith" offer to resolve this issue be returned to my above address', yet elsewhere it tells the collection agent "please do not contact me again accept for the following reasons" and doesn't include to respond to the letter!!!

These errors in the response should be sufficient reason to wonder about dtown7's 'credentials', knowledge or legal education!!

So, lets get back to your REAL issue....

I wanted to post on here and get some suggestions on what I should do?

The bad news is.... you are stuck with this debt by virtue of YOUR allowing him to use your credit. Your options are to continue making the payments or accept the repercussions of defaulting on the debt. Those could include: harrassment from debt collectors, negative hits on you credit profile and possibly a lawsuit and judgment against you. Not good news.... but at least this is accurate.

 

[thomas975]

Would you think they would be willing to work with me on payment? Maybe lowering it? Has that ever been done before? Also if it is going make my credit bad ...should i just not pay anymore of my debt? thanks

 

[JETX]

Would you think they would be willing to work with me on payment? Maybe lowering it?

There is no way that anyone on this forum can 'divine' what someone else might do. If they could, they would be sitting on their private island counting their lottery winnings.

Has that ever been done before?

Of course it has. Some creditors agree to negotiate a settlement rather than go through the process and expense of litigation. Some sue at the drop of a hat.

Also if it is going make my credit bad ...should i just not pay anymore of my debt?

Do NOT worsen your situation. Several bad marks on your credit history are much, MUCH worse than a single one.... especially one that can be explained away as not your fault.