collection's leagal threat

If you want str8 to the point without the story go to the bottom!

When I was 18 I bought a 1996 Ford escort 4 door in March 2003. I was going through family troubles and I had a good job. I had saved up 800 bucks and the guy said he would take 400 in a check and then if i wrote a personal check to him he would give me the 100 dollar cash advance, since I didn't think about insurance.. I WAS REALLY YOUNG! I would still have to pay an additional 500 downpayment and it would be pro rated throughout my first 4 payments. SO instead of being 75 bucks a week they were 215! Well I paid for the car every wednesday which is when i got paid i went down to the bank got the cash and delivered it to them. Waited for my receipts and bullshitted with the guys some. I knew they ripped me off charging my 4490 for a ford escort with over 116k miles. They didn't even fix the drivers side automatic seatbelt. Well irrelivant.

sorry i talk a lot anyways breaks down to this from here..

Going to High school one morning.. TIRE BLOWS one they changed right before I bought the car a month ago. When it blows on the I-10 structural damage is done to the car and I had to have it towed to my families house.

Shortly after that I lost my job. Two weeks went by without me making my payments, and I was already losing sleep. Then the calls started. That is fine and I told them im looking for work and it may be a few weeks can I get a small extension. Charge me higher interest on missed payments and tack them on to the end.

After 5 weeks I admitted my defeat and I turned the car into them, on a donut with no alternator. Having paid almost 1650 for a peice of shit and a heart ache and a bad mark on my credit.

NOW when a normal car is repo'ed or returned it is put into auction and sold. Then the selling amount is subtracted from the remaining balanace to get a final balance. Obviously this wouldn't normally break even, but this car fixed it in there chop shop and sold it back on there remaining lot since the one I bought it from went under. They sold the car for the exact same price to some other poor sucker. NOW i know an alternator and a tire isn't that expensive... hell you can replace the entire engine and transmission in a ford escort for 1500 bucks. SO where did I end up still oweing 4780. I understand that before they had to sell if that they would have to fix the repairs that even my sister could do for 150 in parts and a video game.


so i start out

4490.00
- 500.00
- 500.00
- 600.00
----------------
2890.00 is my remaining balance after two months and paying a bit extra to get some more principle set. SO lets see there math


4490.00
-1600.00
------------
2890.00
-10110.00 -- this is what they thought 10 minutes of welding, a tire and a
+4490.00 alternator with a serpintine belt cost
--------------
-2730.00 and this is still a figure less than they charged me ...... i gave up
up with the math but you get my point.

SO NOW im sitting at home its December 2004 and I get a call and find out who it is. My heart drops and I naturally get pissed. What really pisses me off is that he said that i owed $32.60. I was like ok 33 bucks i can do that to pay the difference, and he was like no no no 3260. Now you can start making payments again or this is going to go on your credit report and i know you 18 you really don't want that. If you don't make payments and or come in to set up a repayment plan we will have them garnish it from your wages.

NOW this alone at a job i just got that on my W4 if the payroll that if they garnish wages they would fire me if it became to much of a hassle. SO i quit before it would effect me at all. Now i was a capital one auto finance collector for 3 weeks and i know you can't tell someone your going to do something unless you do it. Not to mention the balance is wrong not only was it not charged off or down from the repo of collateral but it wasn't even what he told me in december when they charged it off my credit report. GRRR WHAT DO I DO

When a vechicle is repossed, there are certain laws (according to your sate..so look them up) that must be followed.

SEIZING THE CAR

Normally, your creditor has legal authority to seize your vehicle as soon as you "default" on your loan. What constitutes default will be stated in your contract, but failure to make a payment on time would certainly be an example. However, if your creditor has agreed to accept your late payments or to change your payment date, the terms of your original contract may no longer apply. Such a change in your credit contract may be made orally, in writing, or, sometimes, simply by your creditor's repeated acceptance of late payments without complaint. Once you are in default, the laws of most states permit the creditor to repossess your car at any hour of the day or night, without prior notice, and to come onto your property to do so. However, when seizing the vehicle, your creditor may not commit a "breach of the peace" by, for example, using physical force or threats of force. Taking your car over your protest or removing it from a closed garage without your permission also may constitute a breach of the peace, depending on the law in your state. Should there be a breach of the peace in seizing your car, your creditor may be required to pay a penalty or, if any harm is done to you or your property, to compensate you. Also, because of a breach of peace, your creditor may lose the right to collect a "deficiency judgment." A deficiency judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle. An attorney can give you guidance about how your state courts have dealt with these matters.

RESELLING THE CAR

Once your car has been repossessed, your creditor may decide to keep the car as compensation for your debt or to resell it in either a public or private sale. In any case, generally your creditor must notify you about what will happen to the car. Under most state laws, your creditor must tell you if it wants to keep the car because you have the right to demand that the car be sold instead. You may want to exercise this right if the car is worth more than what you owe on it. Most creditors prefer to sell the car, however, rather than keep it. If your creditor chooses to resell the car at public auction, state law usually requires you to be notified of the date so that, if you wish, you can attend and participate in the bidding. If the vehicle is to be sold privately, you are usually entitled to a notice of the date after which it will be sold. In any of these circumstances, you may be entitled to "redeem" or buy back the vehicle by paying the full amount owed on it, plus the expenses connected with its repossession, such as storage and preparation for sale. Some states have consumer protection laws that also allow you to "reinstate" your loan. This means that you can reclaim your car by paying the amount you are behind on your loan together with your creditor's repossession expenses. Check with your state consumer protection office or an attorney to learn what the laws are in your state. Any resale of a repossessed car must be conducted in a "commercially reasonable manner." This does not mean that your creditor must get the highest possible price (or even a good price) for the vehicle. A resale price that is below fair market value, however, may indicate that the sale was not commercially reasonable. A sale made according to standard custom in a particular business or in an established market will be considered commercially reasonable in almost all cases. Failure to resell your car in a commercially reasonable manner may give you either a claim against your creditor for damages or a defense against a deficiency judgment. Whatever method is used to dispose of a repossessed car, a creditor may not keep or sell any personal property found inside. (This does not include most improvements made to the car itself, such as the addition of a stereo player or luggage rack.) Your creditor also may be required to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor cannot account for valuable articles left in your car, you may wish to speak with an attorney about your right to compensation.

PAYING THE DEFICIENCY

Any difference between what you owe on your loan and what your creditor gets for reselling the vehicle is a "deficiency." For example, if you owed $4,500 on the car and your creditor sells it for $2,500, the deficiency is $2,000. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a "deficiency judgment" to collect the loan balance. Several states, however, have consumer protection laws that restrict creditors from suing for a deficiency when vehicles or other similar consumer goods are involved. Your attorney or state consumer protection agency will be able to tell you whether this is true in the state where you live. If you are sued for a deficiency judgment, you will be notified about the date of the court hearing. It may be important for you to appear at this hearing, because it may be your only opportunity to use any legal defenses you may have. If your creditor breached the peace when seizing the vehicle or failed to resell the car in a commercially reasonable manner, these may be defenses against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

In My State they Must notify me of the expected Auction/Sale date, Provide upon request the Sales price they sold it for, and the basis they have determined the deficiency judgment from.

Jerry

[quote=jtucker]When a vechicle is repossed, there are certain laws (according to your sate..so look them up) that must be followed.

SEIZING THE CAR

Normally, your creditor has legal authority to seize your vehicle as soon as you "default" on your loan. What constitutes default will be stated in your contract, but failure to make a payment on time would certainly be an example. However, if your creditor has agreed to accept your late payments or to change your payment date, the terms of your original contract may no longer apply. Such a change in your credit contract may be made orally, in writing, or, sometimes, simply by your creditor's repeated acceptance of late payments without complaint. Once you are in default, the laws of most states permit the creditor to repossess your car at any hour of the day or night, without prior notice, and to come onto your property to do so. However, when seizing the vehicle, your creditor may not commit a "breach of the peace" by, for example, using physical force or threats of force. Taking your car over your protest or removing it from a closed garage without your permission also may constitute a breach of the peace, depending on the law in your state. Should there be a breach of the peace in seizing your car, your creditor may be required to pay a penalty or, if any harm is done to you or your property, to compensate you. Also, because of a breach of peace, your creditor may lose the right to collect a "deficiency judgment." A deficiency judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle. An attorney can give you guidance about how your state courts have dealt with these matters.

RESELLING THE CAR

Once your car has been repossessed, your creditor may decide to keep the car as compensation for your debt or to resell it in either a public or private sale. In any case, generally your creditor must notify you about what will happen to the car. Under most state laws, your creditor must tell you if it wants to keep the car because you have the right to demand that the car be sold instead. You may want to exercise this right if the car is worth more than what you owe on it. Most creditors prefer to sell the car, however, rather than keep it. If your creditor chooses to resell the car at public auction, state law usually requires you to be notified of the date so that, if you wish, you can attend and participate in the bidding. If the vehicle is to be sold privately, you are usually entitled to a notice of the date after which it will be sold. In any of these circumstances, you may be entitled to "redeem" or buy back the vehicle by paying the full amount owed on it, plus the expenses connected with its repossession, such as storage and preparation for sale. Some states have consumer protection laws that also allow you to "reinstate" your loan. This means that you can reclaim your car by paying the amount you are behind on your loan together with your creditor's repossession expenses. Check with your state consumer protection office or an attorney to learn what the laws are in your state. Any resale of a repossessed car must be conducted in a "commercially reasonable manner." This does not mean that your creditor must get the highest possible price (or even a good price) for the vehicle. A resale price that is below fair market value, however, may indicate that the sale was not commercially reasonable. A sale made according to standard custom in a particular business or in an established market will be considered commercially reasonable in almost all cases. Failure to resell your car in a commercially reasonable manner may give you either a claim against your creditor for damages or a defense against a deficiency judgment. Whatever method is used to dispose of a repossessed car, a creditor may not keep or sell any personal property found inside. (This does not include most improvements made to the car itself, such as the addition of a stereo player or luggage rack.) Your creditor also may be required to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor cannot account for valuable articles left in your car, you may wish to speak with an attorney about your right to compensation.

PAYING THE DEFICIENCY

Any difference between what you owe on your loan and what your creditor gets for reselling the vehicle is a "deficiency." For example, if you owed $4,500 on the car and your creditor sells it for $2,500, the deficiency is $2,000. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a "deficiency judgment" to collect the loan balance. Several states, however, have consumer protection laws that restrict creditors from suing for a deficiency when vehicles or other similar consumer goods are involved. Your attorney or state consumer protection agency will be able to tell you whether this is true in the state where you live. If you are sued for a deficiency judgment, you will be notified about the date of the court hearing. It may be important for you to appear at this hearing, because it may be your only opportunity to use any legal defenses you may have. If your creditor breached the peace when seizing the vehicle or failed to resell the car in a commercially reasonable manner, these may be defenses against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

In My State they Must notify me of the expected Auction/Sale date, Provide upon request the Sales price they sold it for, and the basis they have determined the deficiency judgment from.

Jerry[/quote]

I didnt get the point of quoting my whole post and not commenting?

What am I missing?

Jerry