Here are two more questions we received in response to my appearance on CNN talking with Gerri Willis about debt collectors:
Q: Maybe you can help
me. We got an Oakwood mobile home in 2000. It was repossessed in 2004. It was
not foreclosed upon. On our credit report it states it was a car repo not a
mobile home. Also Oakwood sold the 2000 mobile home for $3000.00, and now they
are trying to come after us for the unpaid balance.
A: Mobile homes are often classified on credit
reports as
vehicles, because for purposes of the loan, they are more like vehicles
than homes. In most states, lenders repossess mobile homes, they do not
foreclose upon them. (I assume you did not own the land the mobile home
was
on.)
In most cases, when a vehicle (or mobile home) is
repossessed the lender can come after you for the difference between the amount
you owed and the amount for which they sold it. (That is called a
“deficiency”). As we explain in the chapter of the book about repossessions,
you have several options for dealing with that deficiency: 1. Negotiate a
settlement of that debt for less than the amount you owe (which we discuss in
detail in Stop Debt Collectors), 2.
Dispute the debt if you believe it is inaccurate, and/or 3. Talk with a
consumer law attorney.
Q: I just saw you segment on CNN and need advice on how to handle
a debt collector. I have been paying
$50.00 per month to XYZ Collection Agency to settle a $3,000.00 Sears credit card debt. I made 14 regular monthly payments to them
since our agreement. I noticed early in the process that the loan amount was
not decreasing accordingly. I questioned it in writing multiple times and began
noting the correct balance due each month in the memo line of the checks, which
they cashed. The last check cashed
stated the loan amount to be $2320.07. The two checks written for June and July
have not been cashed yet.
On July 9, I received a phone call from a new collection agency
claiming they purchased my account from XYZ and that I owe them $2,800.00. They also claimed I am two months behind on
my payments to them. I immediately
disputed both the alleged balance owed and the fact that I was 2 months behind.
I have not received anything in writing from either XYZ or this new collection
company that my account was being sold or purchased. I do not even know the name of this new
company. I only have a phone number
because they have bombarded me with phone calls prior to and since my
conversation. I verbally requested
written communication from them verifying everything and asked that they stop
calling me three times a day. They have honored neither request.
I want to know if I have the right to refuse any further
payments on this debt until the balance dispute is settled and the two missing
checks to XYZ are either cashed or returned back to me. Can XYZ sell my
account with an incorrect balance, making me liable for it? Can this new
company add more on to my balance? What should I do? Do I need a consumer law
attorney? I really can’t afford that, I’m just trying to pay off my debts
without stress. Please help!
Many consumers have complained to the FTC that they have received
indecipherable bills with questionable interest charges from debt
collectors.
If you read our new book Stop Debt Collectors (which is available online to download immediately), you will
probably find yourself highlighting numerous passages that describe
ways in which these companies have violated the federal Fair
Debt Collections Practices Act in their efforts to collect from you. I
recommend you immediately start using our free Collector
Contact Worksheet to record every conversation with this collection
agency. The
second thing I would recommend is that you gather all your
documentation about
the debt into one file. Third, the next time you talk with this new
collection agency ask them for their name and address. They are
required by law to provide you with that information.
Finally, I would recommend you consult with a
consumer law attorney. He or she may be able to take your case on a contingent-fee
basis, which means they get paid only if you win. If s/he does not think you have
a good case, or you cannot afford the fee, you can use the information in the
book to send a solid Cease and Desist letter to the collection agency, and/or
consider taking them to small claims court yourself.
Please note, the answers to questions on this blog are
educational, and should not to be considered legal advice. Please consult a
consumer law attorney for specific information regarding your situation.
Gerri
Detweiler – Personal finance author and Credit Advisor for Credit.com.
Gerri contributes budgeting, debt recovery and savings information online. She
is also the co-author of Stop
Debt Collectors: How to Protect Your Rights and Resolve Your Debts
Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.
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