need assistance on on what to do

[buskellc]

Overview - I went into basic training, leaving my someone in charge of making payments on my motorcyle. She was given the money but did not make the payments and when I got out, the account had been turned over to a collection agency. The bike was not repossessed (it is still sitting in my garage). The collection agency offered a lower payoff but refused to give me anything in writing. I mailed letters stating I would accept the offer and send in payment - no response. Only extremely harassing, insulting phone calls which I eventually stopped answering. Prior to this, my credit was good. It no longer is.

Now, a few months later I get a call from another collection agency saying that they now have the account. The person I spoke with offered a few options and I just want to get some opinions on how I should handle, what are the risks, what the effects will be on my credit will be with the various options. They seem like they are willing to work with me and I'm supposed to talk to her again today. Here are the options she gave:

Option 1: Pay it off. Good thought but I don't have those kinds of funds available right now.

Option 2: Bring the account current and make monthly payments until paid off. These payments would go to the collection agency, not the original finance company.

If I went with this method, how would it report? Would it benefit my credit report in any way or just prolong the amount of time until it came off. What would I need to get in writing to protect myself?

Option 3: A dealer purchases the bike for resell - The dealer would pay the note at a reduced rate that the agency would agree to.

Some of my concerns with this option:

1. I take the bike to a dealer and they reposses on the spot.

2. The dealer purchases at a reduced rate but I am left owing a balance.

Those are the options that I have at this point in time. Can someone please give me some advice? Should I go with Option 2 or Option 3? Is there another option I could suggest? What do I need to get in writing to protect myself and possibly begin the process of credit repair? Does anyone have examples of letters I can use? Any advice is greatly appreciated.

[momof5]

Oh the parts of life the recruiter's leave out and the DS's forget that we have financial issues we have when we enlist!

First, did you go after her for the $? That would torque my jaw!

Next, how long has it been? Sometimes you can explain the "service to my country,etc. - in basic where they wouldn't let me pay my bills but forced me to entrust that to another...." and get the OC to take it back.

As an example: DD enlisted when working FT, living in an apt with co-workers who were party hounds AND going to college FT. She couldn't handle the strain any longer. She dropped out of school (withdrew) and left on the next bus to Ft. Leonardwood. Because of Fed Law, the school prorated tuition, paid some back to the SL company and then sent a bill to her for that remainder. She couldn't have paid that if she tried! I didn't have the money to cover it then either.

Fast forward to the end of her first deployment... the school had turned that balance over to a CA. It was on my DD's CR and she needed a new vehicle when she got home. Acting on her behalf, I wrote the pres of the college. He not only called back the debt, they forgave it in honor of her service!

You never know what an OC will do until you ask. Right now being AD can help a great deal! If that doesn't work, check with the JAG. Soldiers and Sailors Relief act provides some protections for debts incurred prior to enlistment. Maybe they can provide some better advice.

Good luck! And Thanks for your service!