June 17, 2009

Brian Lends His Expertise

Filed under: Auto Loan,Credit Repair

6 months ago, I made a car payment that was 2 months past due on Saturday. On Thursday the following week, my car was repossessed because their computer system didn’t indicate the payment made over the weekend. I was informed if I had called, the repossession wouldn’t have happened despite the fact that i made a payment at their branch location. I had my car back in 3 hours, now there is a redeemed repossession on my credit. Do I have grounds to ask for that to be removed? Additionally, the account is now listed under closed accounts, but it’s an open account being paid as agreed.

Kim (more…)

January 10, 2009

Dana’s Story

Dana Fixed Her Credit & Buys a Home!Mine is twofold: Testimonial and attempt to stump the experts!

First, the testimonial. My credit score was doomed until I stumbled upon this site about 10 months ago. I used the abundant advice on this site and have repaired my credit so much so that I’m well within reach of approval for a mortgage to purchase my first home!! The pay for deletes, references to consumer rights using exact verbiage, and the ever helpful green cards, have been a credit-saver. I CANNOT THANK YOU ENOUGH!

Now, for the question. I had a vehicle on my report for about $12,000 that went into default back in February of 2002. It was repossessed, but wasn’t reported as such. Additionally, GMAC reported the debt twice on my report, with 2 different account numbers, for different amounts, AND they were not reporting the payments I was making on the account. It simply read that the account was seriously delinquent. It goes without saying it wasn’t difficult to get it removed from my credit file since even I didn’t know what account was valid, and GMAC couldn’t verify (sounded like a failure on their part records wise). Also, the statute of limitations shown on my credit report showed the debt would be removed in October of 2008 anyway. So, it is gone.

This past week I received a letter from a collection agency for the full amount of this account attempting to settle for less than the amount owed. Up until now I’d never received a letter from any collection agency regarding this account. I’ve scoured BrokenCredit.com for answers on what to do in this case, but I can’t find anything. I’d like to send the collection agency a letter citing what my rights are and their wrongful collection practices (if they’re wrong at all).

Even more on this issue is the IRS. I received a letter from them back in September stating I would have to pay taxes on the full amount of the debt because GMAC has reported it as income to me. So, I am also paying the IRS. I stopped making payments to GMAC once I received this letter. I sent a letter to dispute this with the IRS along with copies of my payments to GMAC (how can I owe taxes for income on a debt that I’m still paying on?), but the IRS still says I owe taxes on the amount. I don’t want to mess with the IRS!

Can the collection agency really collect on this debt? And am I really up against the wall with the IRS on this?

Oh…if I may add…today, while sending off my final letters and proof to the credit reporting agencies, my local post office informed me of a new way of receiving proof of receipt without the need for the green card. The clerk said to send via Certified mail. On the receipt is the tracking number. Within 3 days of mailing check the tracking number on the USPS website and simply print out the signature. I tried this with one of the past letters I mailed and sure enough! There was the address, date and time of delivery, and the printed name and signature of the recipient. She assured me it was just as good as the green card. Saved me about 20 bucks today! This should be enough…right???

Dana (more…)

December 30, 2008

Bankruptcy Repo

Filed under: Auto Loan,Bankruptcy,Repo

My husband and I filed a bankruptcy that finalized June 4, 08. My car was repossed in August 08.  We were given no warning.  They said that we hadn’t paid in three months.  They worked with us before with late payments.  In May we were up half a payment that month and made the other half payment that month.  With my husband out of a job it was hard to make a full payment.  So the next two months we only made a half payment.  Which put us behind 1 full payment by July. 

We told them that we would be able to make July’s and August’s payment all at once, by the end of August, from the economic stimulus payment we would recieve.  Our payments were $365. So we would owe them $730. Well right before the end of August two men came to repossess our car. 

We called them and they said it hadn’t been paid in three months.  We called Truepay, which removes money from our bank account and places it with the car loan bank account.  They had went out of business!  We had no idea where our payments went.  They sent our account to Speedpay, another middle man.  But they had no idea about the payments either. We told our bank that we would not make payments until it was settled. 

They then told us that our car was repossessed because my husband had told them we weren’t going to make July and August’s payment, when we said we were going to pay in full.  They even said we were late every month because we made our payments on the 5th and 20th and they didn’t accept half payments and even though they said payments were do by the 27th, they told us that the date varied every month!

The guys took our car and it was sold about a month and a half later.  It was sold for half of what we had left on the loan!  Now we can’t get ahold of the bank to make payment arrangements.  Though we can’t afford them since we had to get another vehicle and pay a high interest.  Its not even as good as vehicle as what we had.  We went from 2006 Hundyaii Sonata to a 2003 Chevy Cavalier.

Even though we agreed that payments would stop until the car was sold, the bank still made the new middle man take out the next two payments.  They said we verbally agreed on them taking them out.  We did get those two payments returned and had a stop placed on the bank and on Speedpay.

Can we do anything about the middle man taking out money?  And what about those half payments that were never posted to their bank?  Was the bank with the loan in the wrong? 

I have two children and one on the way.  My husband is getting deployed soon and we need the money. I am afriad that they will garnish his wages.  Or even take our tax return which i need to pay my student loan that has to be paid.  It feels like we were trapped!

Kimberly (more…)

December 26, 2008

Did You Receive Your ‘UCC Compliant’ Repo Notice?

Filed under: Auto Loan,Repo

1984 Movie, Repo ManAppellant’s car was repossessed and sold, and she filed this class action against the lender, alleging that it failed to comply with the notice requirements of the UCC. The trial court granted the lender’s motion for summary judgment, but we reverse because of the insufficiency of the notice. We also find a settlement offer for the full amount plaintiff sought did not make the class action moot.

The notice provided by the lender failed to include a number of requirements found in section 679.614(1)(a) and section 679.613(1), such as whether the sale was public or private, or where or when the sale would be held. The lender argues that if the notice was not in compliance with the UCC, plaintiff had received actual notice of the sale through conversations between her and the director of collections for the lender. The case relied on by the lender to support its argument that the oral notice would remedy any deficiencies in the written notice, Bondurant v. Beard Equipment Co., 345 So. 2d 806 (Fla. 1977), was decided before the legislature enacted the current statutes requiring written notice, and is no longer good law. The court accordingly erred in entering a summary judgment in favor of the lender.

Nor do we agree with the lender’s argument that its unaccepted settlement offer for the full amount of plaintiff’s claim, a practice which is known as “picking off” a class representative, made this case moot. Neither Florida nor the federal courts sanction that practice. Allstate Indem. Co. v. De La Rosa, 800 So. 2d 245 (Fla. 3d DCA 2001); Weiss v. Regal Collections, 385 F.3d 337 (3d Cir. 2004). Reversed.

Jackson v. Southern Auto Finance Company [4D07-3284, Fla 4th DCA, August 20,2008]

February 18, 2008

Retiring Auto Loans Early

Filed under: Auto Loan

I have pretty good credit.  But I’d like to increase it as much as I can in the next 6-months since that’s when I plan to buy a house. 

I’m in the process of buying a car.  I can afford to pay cash, but have been told taking out a loan and paying it off will increase my score.  But in the short term, it appears taking out a car loan will in fact have the opposite effect. 

Is 6-months long enough for the anticipated increase in credit score to be seen? 

John (more…)

February 8, 2008

Credit Score My Auto Loan

Filed under: Auto Loan

Hi Paul,

My name is Miguel and I have a question about my credit score…Ive been working to restore my credit the last couple of years due to some negligance on my part when i was younger…my cedit score is a lot better now but i do not want to stop that process…I recently found a car that i just cant live without but wasnt sure if trading in my old car and getting a new auto loan woukd make my score go down…Should I wait until my score is where i want it or would taking on this new loan not affect my credit score…I would also be financing roughly about 10,000.00 more than my old loan…hopfully your answer will help me in obtaining the car of my dreams…but if it doesnt im ok in knowing that ultimiately raising my credit score is the ultimate goal in trying to become a successful person… Thanks for taking the time to read my dillema and hopfully i will hear from you soon… Thanks 

Miguel (more…)

February 1, 2008

Bankruptcy & Co-signers

Filed under: Auto Loan,Bankruptcy

Hey Paul!

I have one quick question for you…My mom has decided to file BK.  She has co-signed on a car loan that I have (she is primary, I am secondary) and is also a co-signer on my brother’s car loan (he is primary and mother is secondary).  When she does file for BK, (in Arkanssas)can she keep both cars? If not, how will her BK effect my credit? Are the lenders able to put it on my credit as a repo or BK?  Any advice would be great!


PS:  DEU 15:7 “If there is among you a poor man of your brethren, within any of the gates in your land which the LORD your God is giving you, you shall not harden your heart nor shut your hand from your poor brother, 8 but you shall open your hand wide to him and willingly lend him sufficient for his need, whatever he needs.”

Though, this may speak of giving money, I just wanted to personally thank you for your knowledge and giving freely what God has given to you.  Thank you for being a good steward. (more…)

December 31, 2007

Credit Resellers & Tri-merged Reports

I am a credit profesional and I have a client which I am helping fix his credit. Now, something very strange happened while I am fixing his credit. You see, I removed a late payment on an auto loan in Transunion, it’s still reporting on the other two bureaus that auto late payment.

Now, when the Mortgage broker pulled his trimerged credit report the auto late payment is still showing on Transunion, how can that be?

The reports that I am pulling are from the Annualcreditreport.com site. Does that have anything to do with this? if any? This is strange since it has never happened to me before in 22 years of practicing credit repair.

Can you give me an idea what is going on??

Evelio (more…)

December 14, 2007

Credit Score Cowgirl

Credit Score CowgirlWe were caught in an ice storm and totaled our truck.  Wasn’t our fault, a young lady lost control and came at us head-on, foot on the gas.  Everyones okay.

Her insurance said it would take 14,600. to fix our chevy avalanche.  We didn’t think that was right since the front end was now about 6 inches long! 

We called our insurance company to send their adjuster and they said it would take 23,600. Totaled.  They said they would write us a check and get the other company to ‘come on board’. The fair market value of our truck is 25635.  pay off is 25365.  Our company said it would take the ‘fmv’ and average it with the price of similar vehicles selling in our area.  I figure we’re screwed! 

Yes! I was upside down and yes! I was throwing money at this truck.I had no intention of trading this vehicle soooo I thought I had time. 

Meantime, credit card companies have been doing the ‘bait and switch’ and interest rates have been skyrocketing, I ‘opted out’ and closed these accounts to keep rates from going higher.  Fico went from 674 to I don’t even want to look. 

We live IN THE MIDDLE OF NOWHERE 26 miles from a very small town, my husband is a ranch foreman, yes folks the real Mccoy cowboy.  So he makes squat.  They just don’t pay for legends. 

I work in town and this business (self-employed) is what pays the bills. A $500 beater is just not going to stay together on 16 miles of dirt road. 

I don’t have big eyes, but it has to be a truck 4×4, low water crossings don’t mix well with low clearance vehicles. 

I don’t want to go upside down with some shady dealer but the fico has me in a head-lock. 

I haven’t gotten the word from the insurance company and am freaking out. 

Any words of advice?

Kayla (more…)

October 18, 2007

Credit & Employment

My credit is in the toliet because of my divorce after a 15 year marriage, shortly before and partly due to the break-up, he bought a ford truck that was way out of our budget..

Next we purchased a home that if we budget properly we would be fine. I made more money with a new job.  He became frivilous will all our financial obligations, and 9 months later he walks out leaving me with the home, kids, bills that were supposed to be his part to pay, not taken care of.

I did everything to bring all bills to current, but after months with no financial support from him, I had to start saving money for an attorney, and find a new home for my kids and I. I wrote a letter of forbearance for the home. I paid most of the smaller bills off and now I am hit with a truck note that he doesn’t pay regularly, it has been repossessed, but he has paid to get it back.

I am sure you know where I am going. How do I begin to fix my credit.

I have recently been turned down for a job due to this credit disaster. Because in my line of work I deal with clients credit cards numbers.

Ruth (more…)

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