Jump to content

CAR DOWN PAY 4th party collection/"pump letter" (Payment plan was already in place!)


losanglesgal
 Share

oops!  

You do not have permission to vote in this poll, or see the poll results. Please sign in or register to vote in this poll.

Recommended Posts

I have some questions regarding this collection call I got for a down payment on a car.

I bought a new car. I agreed to pay the taxes and fees directly. The full amount of the car plus aftermarket dealer equipment were to be paid by loan from my credit union.

I left a check for the amount of the taxes and fees (about $2500). The dealership agreed to deposit the check later - the next week. I initiated the loan at my CU. I took the car. (The car lacked some of the agreed on equipment - worth 760 bfore taxes, worth 830 after taxes. It was equipment like floormats, cargo tray etc, and the bluetooth that was not yet installed. We agreed that they would install these later. I think this might be relevent.)

__

Then I had an unexpected financial hiccup (an already deposited incoming check bounced.)

___

So I wrote the dealership a letter. I notified them in writing BEFORE the date they were to deposit my check for $2500. I stated that I had to cancel the check I had written them, and that I was enclosing four replacement checks, dated on my next four paydays. I also stated ... If this revised payment plan is acceptable to you(Dealership name) , please accept and deposit the check from my CU for $25000 and accept four more checks for 25% of the $2500, on dates (two weeks apart, four dates). If this revised payment plan is not accpetable to (dealership name), please do not accept an deposit the check for $25000.

I enclosed the $25K check from my CU and my four replacement personal checks for the tax/fee amount. I gave the letter to the sales manager personally. He showed it to his manager. He said he would give it to his finance manager the next day and call me if there was a problem.

I never heard from them.

They did deposit the CU check for roughly $25K.

I still have not received the $800 in equipment owed to me, though I have a date to have them installed.

Three weeks later a collection company called me.

He said he represented a 3rd party, card gard, which had paid the dealership the amount of my check. He said that since I had canceled it, his company (a 4th party was entitled to full payment in 24 to 48 hours and a $1500 fee. WHAT????

The dealership accepted all five checks and my letter. We have a revised payment plan right????

The guy is VERY aggressive, hostile and rude. He says that if I don't pay him by MONDAY he will ruin my good credit. That can't be right!

Questions:

1) Should I send a regular DV letter to protect my credit? What should it demand exactly?

2) I have an appointment monday to have the equipment installed. SHould I postpone it? Is it relevent?

Note, what I owe is $2500. (It's the literal amount of tax and fees only -- the $25,000 they cashed already covered the full amount of the car, including the $800 in equipment I have not yet received.)

3) Is there specific language I should reference? RE the amount cashed in excess of the agreed car price, RE the five checks accepted by the dealership and already in their possesion, RE

4)The collector guy mentioned something about a "pump letter" and Civil code 1719 allowing for damages of $1500. Can anyone advise about this?

5) What are my rights here? What is the law? Can anyone advise me?

__________________________________________

Link to comment
Share on other sites

1719. (a) (1) Notwithstanding any penal sanctions that may apply,

any person who passes a check on insufficient funds shall be liable

to the payee for the amount of the check and a service charge payable

to the payee for an amount not to exceed twenty-five dollars ($25)

for the first check passed on insufficient funds and an amount not to

exceed thirty-five dollars ($35) for each subsequent check to that

payee passed on insufficient funds.

(2) Notwithstanding any penal sanctions that may apply, any person

who passes a check on insufficient funds shall be liable to the

payee for damages equal to treble the amount of the check if a

written demand for payment is mailed by certified mail to the person

who had passed a check on insufficient funds and the written demand

informs this person of (A) the provisions of this section, (B) the

amount of the check, and © the amount of the service charge payable

to the payee. The person who had passed a check on insufficient

funds shall have 30 days from the date the written demand was mailed

to pay the amount of the check, the amount of the service charge

payable to the payee, and the costs to mail the written demand for

payment. If this person fails to pay in full the amount of the

check, the service charge payable to the payee, and the costs to mail

the written demand within this period, this person shall then be

liable instead for the amount of the check, minus any partial

payments made toward the amount of the check or the service charge

within 30 days of the written demand, and damages equal to treble

that amount, which shall not be less than one hundred dollars ($100)

nor more than one thousand five hundred dollars ($1,500). When a

person becomes liable for treble damages for a check that is the

subject of a written demand, that person shall no longer be liable

for any service charge for that check and any costs to mail the

written demand.

(3) Notwithstanding paragraphs (1) and (2), a person shall not be

liable for the service charge, costs to mail the written demand, or

treble damages if he or she stops payment in order to resolve a good

faith dispute with the payee. The payee is entitled to the service

charge, costs to mail the written demand, or treble damages only upon

proving by clear and convincing evidence that there was no good

faith dispute, as defined in subdivision (B).

(4) Notwithstanding paragraph (1), a person shall not be liable

under that paragraph for the service charge if, at any time, he or

she presents the payee with written confirmation by his or her

financial institution that the check was returned to the payee by the

financial institution due to an error on the part of the financial

institution.

(5) Notwithstanding paragraph (1), a person shall not be liable

under that paragraph for the service charge if the person presents

the payee with written confirmation that his or her account had

insufficient funds as a result of a delay in the regularly scheduled

transfer of, or the posting of, a direct deposit of a social security

or government benefit assistance payment.

(6) As used in this subdivision, to "pass a check on insufficient

funds" means to make, utter, draw, or deliver any check, draft, or

order for the payment of money upon any bank, depository, person,

firm, or corporation that refuses to honor the check, draft, or order

for any of the following reasons:

(A) Lack of funds or credit in the account to pay the check.

(B) The person who wrote the check does not have an account with

the drawee.

© The person who wrote the check instructed the drawee to stop

payment on the check.

(B) For purposes of this section, in the case of a stop payment,

the existence of a "good faith dispute" shall be determined by the

trier of fact. A "good faith dispute" is one in which the court

finds that the drawer had a reasonable belief of his or her legal

entitlement to withhold payment. Grounds for the entitlement

include, but are not limited to, the following: services were not

rendered, goods were not delivered, goods or services purchased are

faulty, not as promised, or otherwise unsatisfactory, or there was an

overcharge.

© In the case of a stop payment, the notice to the drawer

required by this section shall be in substantially the following

form:

NOTICE

To (name of drawer): (name of payee) is the payee of a check you wrote for $ __(amount). The check was not paid because

you stopped payment, and the payee demands payment. You may

have a good faith dispute as to whether you owe the full amount.

If you do not have a good faith dispute with the payee and fail

to pay the payee the full amount of the check in cash, a service

charge of an amount not to exceed twenty-five dollars ($25) for

the first check passed on insufficient funds and an amount not to

exceed thirty-five dollars ($35) for each subsequent check

passed on insufficient funds, and the costs to mail this notice

within 30 days after this notice was mailed, you could be sued

and held responsible to pay at least both of the following:

(1) The amount of the check.

(2) Damages of at least one hundred dollars ($100) or, if

higher, three times the amount of the check up to one thousand

five hundred dollars ($1,500).

If the court determines that you do have a good faith dispute

with the payee, you will not have to pay the service charge,

treble damages, or mailing cost. If you stopped payment because

you have a good faith dispute with the payee, you should try to

work out your dispute with the payee.

You can contact the payee at:____

You may wish to contact a lawyer to discuss your legal

rights and responsibilities. (name of sender of notice)

(d) In the case of a stop payment, a court may not award damages

or costs under this section unless the court receives into evidence a

copy of the written demand that, in that case, shall have been sent

to the drawer and a signed certified mail receipt showing delivery,

or attempted delivery if refused, of the written demand to the drawer'

s last known address.

(e) A cause of action under this section may be brought in small

claims court by the original payee, if it does not exceed the

jurisdiction of that court, or in any other appropriate court. The

payee shall, in order to recover damages because the drawer

instructed the drawee to stop payment, show to the satisfaction of

the trier of fact that there was a reasonable effort on the part of

the payee to reconcile and resolve the dispute prior to pursuing the

dispute through the courts.

(f) A cause of action under this section may be brought by a

holder of the check or an assignee of the payee. A proceeding under

this section is a limited civil case. However, if the assignee is

acting on behalf of the payee, for a flat fee or a percentage fee,

the assignee may not charge the payee a greater flat fee or

percentage fee for that portion of the amount collected that

represents treble damages than is charged the payee for collecting

the face amount of the check, draft, or order. This subdivision

shall not apply to an action brought in small claims court.

(g) Notwithstanding subdivision (a), if the payee is the court,

the written demand for payment described in subdivision (a) may be

mailed to the drawer by the court clerk. Notwithstanding subdivision

(d), in the case of a stop payment where the demand is mailed by the

court clerk, a court may not award damages or costs pursuant to

subdivision (d), unless the court receives into evidence a copy of

the written demand, and a certificate of mailing by the court clerk

in the form provided for in subdivision (4) of Section 1013a of the

Code of Civil Procedure for service in civil actions. For purposes

of this subdivision, in courts where a single court clerk serves more

than one court, the clerk shall be deemed the court clerk of each

court.

(h) The requirements of this section in regard to remedies are

mandatory upon a court.

(i) The assignee of the payee or a holder of the check may demand,

recover, or enforce the service charge, damages, and costs specified

in this section to the same extent as the original payee.

(j) (1) A drawer is liable for damages and costs only if all of

the requirements of this section have been satisfied.

(2) The drawer shall in no event be liable more than once under

this section on each check for a service charge, damages, or costs.

(k) Nothing in this section is intended to condition, curtail, or

otherwise prejudice the rights, claims, remedies, and defenses under

Division 3 (commencing with Section 3101) of the Commercial Code of a

drawer, payee, assignee, or holder, including a holder in due course

as defined in Section 3302 of the Commercial Code, in connection

with the enforcement of this section.

Link to comment
Share on other sites

I have some questions regarding this collection call I got for a down payment on a car.

I bought a new car. I agreed to pay the taxes and fees directly. The full amount of the car plus aftermarket dealer equipment were to be paid by loan from my credit union.

I left a check for the amount of the taxes and fees (about $2500). The dealership agreed to deposit the check later - the next week. I initiated the loan at my CU. I took the car. (The car lacked some of the agreed on equipment - worth 760 bfore taxes, worth 830 after taxes. It was equipment like floormats, cargo tray etc, and the bluetooth that was not yet installed. We agreed that they would install these later. I think this might be relevent.)

__

Then I had an unexpected financial hiccup (an already deposited incoming check bounced.)

___

So I wrote the dealership a letter. I notified them in writing BEFORE the date they were to deposit my check for $2500. I stated that I had to cancel the check I had written them, and that I was enclosing four replacement checks, dated on my next four paydays. I also stated ... If this revised payment plan is acceptable to you(Dealership name) , please accept and deposit the check from my CU for $25000 and accept four more checks for 25% of the $2500, on dates (two weeks apart, four dates). If this revised payment plan is not accpetable to (dealership name), please do not accept an deposit the check for $25000.

I enclosed the $25K check from my CU and my four replacement personal checks for the tax/fee amount. I gave the letter to the sales manager personally. He showed it to his manager. He said he would give it to his finance manager the next day and call me if there was a problem.

I never heard from them.

They did deposit the CU check for roughly $25K.

I still have not received the $800 in equipment owed to me, though I have a date to have them installed.

Three weeks later a collection company called me.

He said he represented a 3rd party, card gard, which had paid the dealership the amount of my check. He said that since I had canceled it, his company (a 4th party was entitled to full payment in 24 to 48 hours and a $1500 fee. WHAT????

The dealership accepted all five checks and my letter. We have a revised payment plan right????

The guy is VERY aggressive, hostile and rude. He says that if I don't pay him by MONDAY he will ruin my good credit. That can't be right!

Questions:

1) Should I send a regular DV letter to protect my credit? What should it demand exactly?

2) I have an appointment monday to have the equipment installed. SHould I postpone it? Is it relevent?

Note, what I owe is $2500. (It's the literal amount of tax and fees only -- the $25,000 they cashed already covered the full amount of the car, including the $800 in equipment I have not yet received.)

3) Is there specific language I should reference? RE the amount cashed in excess of the agreed car price, RE the five checks accepted by the dealership and already in their possesion, RE

4)The collector guy mentioned something about a "pump letter" and Civil code 1719 allowing for damages of $1500. Can anyone advise about this?

5) What are my rights here? What is the law? Can anyone advise me?

__________________________________________

did they cash the other 4 checks or send them back? if they sent them back , then they did not "accept" your offer, if it wasnt in writing it didnt happen...Now if they did cash the other 4 checks, I would just tell the CA, that 1st check was Canceld on (date) and to collect from the dealership, They are the ones who got the money...

Link to comment
Share on other sites

If you want a contract with someone, you write out a contract on paper and get all parties to sign it...what you did was a very convoluted way to go about it and as was said, if they didn't cash any of these "replacement" checks then I would say that you don't have a contract even by convoluted means.

Most states do allow the recipient of a "bad check" to recover the amount of the check plus some multiple of the face value of the check.

I would suggest you...

1. Have a sit-down with the owner of the dealership or least a phone conversation with him and try to get him/her to intervene...you need to understand, however, that while the dealer bears some of the blame for this mess, most of the responsibility for what happened rests with you. In other words, anything you ask of this owner is a favor.

2. If No. 1 doesn't work; I'd get a lawyer to help you sort through this mess.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.