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Car loan sent to collection


s927mr
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I have a car loan that was sent to collection 2.5-3 years ago. I'm still driving the car.

This loan has been sold to a few different collection agencies. Each time a new collector sends me a notice I ask them t o validate the debt. 3 collection agencies have validated the debt--then I hear nothing until a new collection agency is attempting to collect.

Is this common? I literally hear nothing from them after they have sent me the paperwork confirming the info I requested.

Then, I'm getting tired of worrying about the debt. Right now I don't have the money to negotiate a settlement but still need the car in order to find a job.

Can a collection agency seek repossession of my car without notifying me or without any court proceedings?

What is the likelihood of an out of state collection agency repossessing my car?

Thanks for any advice or information!!!

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I am shocked that the OC did not repo the car. 2 - 3 years is a long time without any action like that. In any case, the answer to your question is yes, they can repo the car anytime they want to. Are you actively hiding the car or otherwise making it hard to repo?

You also are going to have other issues. MN is a recourse state which means they can still take the car, sell it, and then go after you for the difference. Watch out for court papers without any case numbers on them. In MN, you can be served papers and the case starts without the plaintiff filing the case with the courts. Make sure to answer anything like that. Statute of Limitations in MN is 6 years regardless of the type of debt.

Also, even though you have the title, you will not be able to sell or dispose of the car as the lien holder will be listed on the title. You need to get a release card for that and you will have a hard time with that.

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Thanks Whocares1000:

The car has been sitting in my driveway for 3 years. My account has been with 3 or 4 different collectors.

After the last one validated the debt I heard nothing from them. I would think rather than go thru the hassle of repossession they would at least try to squeeze me for payment....but there has been nothing. No calls/letters.

I'd prefer to be proactive at this point. Any ideas?

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Thanks Whocares1000:

The car has been sitting in my driveway for 3 years. My account has been with 3 or 4 different collectors.

After the last one validated the debt I heard nothing from them. I would think rather than go thru the hassle of repossession they would at least try to squeeze me for payment....but there has been nothing. No calls/letters.

I'd prefer to be proactive at this point. Any ideas?

I generally think it's better to be proactive but if you have no money to pay I don't see how you can be?

Who owns the debt at this point...is it still with the original lender?

As has been said, they can repossess the vehicle at any time and I wold be surprised if that doesn't happen at some point; especially if the original lender still holds the title.

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What do you exactly mean by being proactive at this point? Proactive to me would be setting money aside for a cheap hoopdy type car so that you can get something once your current car gets repo'd which will happen sooner or later.

Basically, you cannot keep the car and not pay on it. If that is what you mean by being proactive, then you need another plan because sooner or later, the bank is going to repo the car.

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OK. By proactive I mean calling the last collector that had the loan and see if I can manage an extremely favorable settlement.

If collectors own the debt, how can the lender repossess the car?

I want to be very clear: Other than the initial demand for payment and providing a response to my validation requests I heard nothing from them. Not one of them made a phone call or sent a letter to follow up. In other words I haven't been avoiding anyone but I didn't go out of my way to make a payment proposal.

I guess I am somewhat mystified as to why none of them followed up with a proposal or further written collection attempts.

The car is over 10 years old.

I'm asking these questions not because I'm trying to "beat the system"....I honestly can't figure out what is going on.

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You can offer a settlement for the value of the car without recourse (they cannot sue you for the difference). You can look up on KBB what that is. Use the auction value because that is what they would get if the repo'd the car. A 10+ year old car cannot fetch more than $3000 at an auction lot. Of course, you need to have that money available because they will want a lump sum to settle.

As for who orders the repo depends on who owns the debt. The OC can either sell the debt or contract to a CA while they still own the debt. If the OC owns the debt, they decide to do the repo. If the CA owns the debt, then the OC may not be able to order the repo but the collection company certainly can. Of course, the CA would have to validate first since you requested in the normal amount of time to do so under the FDCPA which they seem to be having trouble with. Maybe that is why the repo has not been done. You seem to be confusing the system by doing a DV.

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