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Newbie and question....


junip3r
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I’m new and have a question for all you smarties…

 

My husband and I had a repossession and a foreclosure back in 2009.  My husband got out of the Navy and we relocated back to our home state and just didn’t make the same kind of money.  We haven’t really heard anything about the foreclosure, just that the house was sold at auction and now the deficiency balance is showing on our CR’s.

 

I received a letter a few weeks ago from a “Law Group” that claims they are a debt collector regarding the car that was repossessed.

 

It says…”We have retained to collect from you the total amount due listed above ($10,714.93).  If you want to resolve this matter, please either pay the total amount due or call… to work out arrangements for payment.

Unless, within thirty days after receipt of this notice, you dispute the validity of the debt or any portion thereof, we will assume the debt to be valid.  If within thirty days after your receipt of this notice , you notify us in writing that the debt or any portion thereof is disputed, we will obtain a verification of the debt or, if the debt is founded upon a judgement, a copy of any such judgment, and we will mail to you a copy of such verification or judgment.  If the original creditor is different from the creditor named above, then upon your written request within thirty days after the receipt of this notice we will provide you with the name and address of the original creditor.

If you request proof of the debt or the name and address of the original creditor within the 30 day period that begins with your receipt of this letter the law requires us to suspend our efforts to collect the debt until we mail the requested information to you.

As of the date of this letter, you owe the total amount due listed above.  Because of interest, late charges, and other charges that may vary from day to day, the total amount due on the day you pay may be greater.  Henver if you do not accept this offer, and choose to pay at a later date, an adjustment may be necessary after we receive your check in which event we will inform you before depositing the check for collection.

Although we are a law firm lawyers may also be debt collectors, and we are operating only as a debt collector and not in any legal capacity.  No attorney with this firm has personally reviewed the particular circumstances of your account.  Because we are not acting in a legal capacity this letter should not be construed as a threat of suite by our client, as no such decision has been made by our client.”

 

My question is... should I respond to this letter?  I'm just not sure what to do.  I want to pay the debt, but I can't pay $10K.  Should I try to negotiate with them?  Should I call them to discuss payments.  If I don't respond will I likely be sued for the money, or will it just fall of my report after the SOL?

 

Does anyone know what happens with car reposessions?

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It sounds like they know how to dot their "i's and cross their "t"s.  I would still do a debt validation letter, though.  It can't hurt.  They even said they weren't planning currently on suing you.  

 

What were the circumstances of the repo?  Did they tell you how much they sold your car for?  Did you get any paperwork?

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Sadly, I haven't kept very good records on this.  It was a very stressful time and I was mostly sticking my head in the sand at that point.  But we voluntarily called the bank and told them where to come get it (not sure that this helps or not...)

 

I want to say that they sold the car and sent us a notice that we owed in the neighborhood of $5500...and apparently now it's up to $10K??  Is this possible?

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http://coloniallawyer.com/2010/09/05/the-repo-man-visits-a-car-lot-near-you/

http://apps.leg.wa.gov/RCW/default.aspx?cite=62A.9A

http://www.consumer.ftc.gov/articles/0144-vehicle-repossession

Any resale of a repossessed vehicle must be conducted in a “commercially reasonable manner.” Your creditor doesn’t have to get the highest possible price for the vehicle — or even a good price. But a resale price that is below fair market value may indicate that the sale was not commercially reasonable. “Commercially reasonable” may depend on the standard sales practices in your area. A creditor’s failure to resell your car in a commercially reasonable manner may give you a claim against that creditor for damages or a defense against a deficiency judgment.

Any difference between what you owe on your contract (plus certain expenses) and what your creditor gets for reselling the vehicle is called a “deficiency.” For example, if you owe $10,000 on the car and your creditor sells it for $7,500, the deficiency is $2,500 plus any other fees you owe under the contract. Those might include fees related to the repossession and early termination of your lease or early payoff of your financing. In most states, your creditor is allowed to sue you for a deficiency judgment to collect the remaining amount owed as long as it followed the proper procedures for repossession and sale. Similarly, your creditor must pay you if there are surplus funds after the sale proceeds are applied to the outstanding contract obligation and related expenses, but this situation is less common.

You may have a legal defense against a deficiency judgment if, for example, your creditor breached the peace when seizing the vehicle, failed to sell the car in a commercially reasonable manner, or waited too long before suing you. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

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Thank you everyone for the info!  So here is what I did...  I sent them a DV letter (certified), and now I wait.

 

I also googled The Brachfeld Law Group, and it seems that these people have some extremely hostile collection practices.  A lot of people said that they sent DV letters and never got a response from them. 

 

If I don't get a response...what would be my next step? 

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It depends on their next step.  If they send you something, most likely it will be a good validation.  If they do that, it's up to you to decide to settle, pay, or send them a "cease and desist" letter.  They could come back and sue you at anytime in the future and that would not be a violation.  

 

If they send nothing, despite their appearance as having their act together, you can assume they don't have anything on you.  The gotcha with this assumption - Don't be surprised if they turn around and sue without another word.    

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Was he stationed on base or was he activated for any region at the time of the repo? You need to read and familiarize yourself with the soldiers and sailors act.

 

Did they notify you by mail when and where the sale of the vehicle would take place? Did they send you a notice of deficiency? If they did not it makes their case harder to prove if they sue.

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bto, i have a repo on my credit as we have previously discussed, i was never notified of the resale of the vehicle, no deficiency notice, no communication after the vehicle was picked up, how can i try and get this removed.

Start a new thread first, its not nice to high jack some one else s thread.

 

They have the right to report the repo, but if they try to collect the balance you have a legit claim to fight them.

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