So about 3 yrs ago I had a lease through Honda Finance. I couldn't keep up with my payments so needless to say the car was repo'd. Well I made the mistake of sweeping it under the rug. Well a creditor called my mother and father in law last night (I have NO idea how they got their info, I just got married 6 months ago and they live in another state) but anyway they called me and gave me this creditor's info. So I called him. He informed me that I owed $10,940 on my old debt and that they could settle with me for $5,500. But that I only had 3 mos to pay this or they would take me to court for the full amount and since I live in a state who lets creditors garnish that my check would be garnished. He did say he tried to contact me by mail but he didnt have my current address?? What should I do? There is NO way I can pay this off in 3 months! Is it true that if you make some sort of payment that they CANNOT take you to court and proceed with the legal action? Please help!! Thank you all in advance!!
If you don't make the payment that they want they will haul you into court. If you don't appear they can get a default judgment - which might include garnishing your wages and freezing your bank account.
Thanks for the quick response. That's what I was scared of.. My husband is blowing it all off but I am taking it very serious. The collection agency's name is OSI, I think..
It is true in some states that if you make any kind of payment, it may start the statute of limitations over, and this debt may already be out of SOL. Your state's UCC for leases may apply here, it would be worth some research.
Each state has different laws. Depending on how much you earn they may not be able to garnish your wages. There are additional costs that are incurred to garnish so it ends up costing you more too. Have you tried to negotiate with them?
Check your state's laws on repossessions. Make sure that they followed the law. See if they were required to give you any type of notices about sale, etc. This differs from state to state so you have to research the laws of your state.
