I recently was notified by a collection agency in New Jersey (Im in Texas) that they were "assigned" my account from Honda. Honda Credit were real jerks and would never work with us when we hit some bad times so we voluntarily gave our car back. Since then we have been making improvements on our credit and now this agency pops up and wants $11000 for the difference Honda lost in the repossession. They will even take payments. (funny, thats exactly what Honda credit would'nt do to begin with but now they suddenly want to "help") Well, enough babbling, I would just like to hear some advice on how to handle this collection agency. We obiously do not have $11000 cash sitting around and are still pretty strapped month to month, living check to check. ANy advice on how to get rid of them or at least keep them away while we work on getting on our feet and paying this back someday. Thanks
Im new to this website so Im not sure exactly what you need, but here is our situation. Financed a used vehicle through Honda Motor Credit. Made payments for about two years then got into some problems (wife income cut back) and started having a hard time making the payments. Were late on the payments for about a year, we knew we could not keep up with them so we took the car back to the dealer and told them our situation. When Honda Credit auctioned the car off there was a $11000 difference from what was owed on the car. Honda tried to collect it from us but obviously we did not have it so they sent it to collection. We heard from one agency and told them we could not pay it. This was about a year ago, then heard nothing from anyone. Now today, a different agency is calling attempting to collect on the debt. This entire process began two years ago. The new agency is telling us they can accept a settlement for $7300, but I believe this will reflect just as bad on credit since it will not show paid, but "settled". I have heard numerous rumors on how to "chase off" collection agencies while we attempt to save the money owed. For example, 1 asking for verification of the debt 2 checking to see if the agency is licensed in my state 3 dealing with the original creditor (which by the way the collection agency says "they will not deal with you, you have to deal with us". Any advice or past experiences are greatly appreciated.
Not real sure, I dont think I know where to begin to find out that info. Ill check your links though, thanks.
You can get an answer very fast from Nina Weston ...if you email tomorrow, you'll have your answer Monday... In order to verify bond requirements in Texas: Verification of Bond or Complaints (By Telephone or Email, no online) Nina Weston at (512) 463-6906, or on the internet at nweston@sos.state.tx.us. If they aren't..that's super important for how you address this situation!!!
Wonderful info, Thanks for the response! I'll e-mail tomorrow and post again after that. Thanks again.
More good news: Collection Agency Licensing Requirements: Any person who conducts a collection agency, collection bureau or collection office in the State of New Jersey, or engages in collection activities including receiving payment of accounts, soliciting the right to collect, or advertise for or solicit in print the right to collect, is required to file a bond in an amount prescribed by its Secretary of State. (Sec. 45:18-1.) Application and bond information may be obtained from: Department of State Division of Commercial Recording Collection Agency Bond CN 453 Trenton, New Jersey 08625 or visit the Department of State's web site http://www.state.nj.us/state/index.html. So, you'll need to check on NJ, too!! whoohoo..hoping at least one brings you good news!
The Massachusetts Division of Banks (the Division) is an agency within the Office of Consumer Affairs. http://www.state.ma.us/consumer/ The Division has jurisdiction over Massachusetts state-chartered financial institutions and out-of-state financial institutions that have been granted authority to do business in the Commonwealth. By law, the Division is required to examine or regulate the following state-chartered financial institutions and facilitites to ensure their compliance with state and federal laws and to oversee their safe and sound operation: The Division also licenses and examines certain consumer or creditor servicing agencies. These include: Check Cashers Check and Money Order Issuers Collection Agencies Foreign Transmittal Agencies Insurance Premium Finance Agencies Mortgage Brokers and Lenders Motor Vehicle Sales Finance Companies Retail Installment Sales and Service Agencies Small Loan Agencies Here ya' go... The steps I used to find it are in the NanaC's Notions (re state laws) in my sig.. in case ya need it in the future!
1*This entire process began two years ago. 2*The new agency is telling us they can accept a settlement for $7300, but I believe this will reflect just as bad on credit since it will not show paid, but "settled [". I have heard numerous rumors on how to "chase off" collection agencies while we attempt to save the money owed. For example: 3*-1 asking for verification of the debt 4*-2 checking to see if the agency is licensed in my state 5*-3 dealing with the original creditor (which by the way the collection agency says "they will not deal with you, you have to deal with us". Any advice or past experiences are greatly appreciate WES1271 ==================== 1*Many states have a 2 year SOL to sue for a defency balance on a repo. There are laws governing how repos must be handled and if correct procedures aren't followed to the letter they can't collect a defiecncy balance.You need to get all the detals of the repo laws of the state where this occurred and fulll detals and paper work about the repo to make sure everything about it was on the up and up. 2*This is why you never pay without getting seleation in writing. 3*It's not a rumor it's a fact of law that you have the right to demand validation from a CA. 4*If they'er not licensed why should you be doing business with them? 5*You can only deal with the OC if they still own the account. If the oc sold the account you must deal with the new owner of the sccount be it a CA or other owner. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
I am actively researching all of the suggestions so far. Thanks for the advice and any other is greatly appreciated.
Does anyone know the process of telling the CA they have incorrect info. I just found a little error, not sure if it will help, but both the CA and one of the CRA has my wifes first name wrong on the account. It is off by one letter. Is this trivial or will it help in getting the CA off my back for a little longer?
