If the reposssesion did not net enough funds to pay off the total amount of your debt (which would have increased by the costs of the repossesion, penalties, interest, etc), then the loan (your obligation) was not cleared by the repossession. Presumably the agency owns the right to collect that and they can use any legal method to do so. Court would seemingly be one.
The collection agency typically does not report to the credit bureaus, the original lender does. Lenders report to the bureaus, collection agencies collect on delinquent debt.
No, as they are the legal agent of the original Creditor and the arrangements made with the collection agency are binding on the original Creditor.
how to get rid of the money that you owe from collection agency without paying them and become good credit again
No the collection will not be removed from the credit report. They will show it paid in full.
No! The only obligation of the collection agency regarding a debt is to accurately report the debt...i.e. balance outstanding, current status, and payment history. However, if you are paying or contemplating paying a collection agency, it would be wise to negotiate a positive outcome...i.e. the total removal of the account from your credit profile in exchange for payment. This should be negotiated prior to paying the collection agency and the agreement should be in writing.
No. Absolutely not. Your driver's license cannot be suspended for not paying a loan or the balance of a loan, repossessed or not even if you get threats from the loan company.
When You owe money to a collection agency via: bank, credit card, hospital, ect... for not paying them the collection agency will take the money directly from your paycheck if you continue to not pay.
when a company "sells" a bad debt to a collection agency it is at a fraction of the total bill due. So, if you have a bad debt to American express in the amount of $10,000, more than likely it was sold to the collection agency for 2-3000. The remainder can be written off by American Express on the taxes that are filed by the company. What you can do is contact the collection agency after saving 40% of the debt (or 4000) and offer to negotiate a settlement. If you settle for $4000.00 you are saving $6000 and the collection agency is making 50-100% profit on the bad debt. This what the debt settlement companies do - no sense in paying the settlement company fees when we can negotiate ourselves.
Paying a collection agency may not be the best way to repair your credit or protect your privacy. There are situation that you may find your self in and have to pay a collection agency to to accomplish a short term goal such as buying or refinancing a home. If you are just in general collection agency hell then paying may do you more harm than good. While I would NEVER PAY A COLLECTION AGENCY. How you wish to handle your individual situation is a personal choice. If you do need to pay them off make sure you do it in a way to not cost you future heart ache and pain...
When a car has been repossessed the person paying the insurance should cancel it.
you "satisfy" a judgment by paying balance in full or settlement. but understand that once a judgment has been issued by a court then there can be no one else that does this.
Paying the collection agency will clear up your account much quicker and some creditors will return the payment to you if you send it directly to them. Most creditors sign a contract with a collection agency and cannot discuss the debt with the debtor once they place it with the agency, they must refer all correspondence, communications and payments to the agency for the life of that contract.
NO. If you are paying a little at a time they can not garnish wages. The collection agency can not garnish your wages.The only agency that can do that is the Internal Revenue Service. It is better to pay the account in full when settleing a debt it show's on you credit report that you took a settlement. 50.00 a month try that toward your outstanding balance and pay more if you can.
if collection agency is not from your lender, but third party, then you need to fax them proof of your payments to your lender or financial insitution and have them send you a letter stating that they will not report you to credit bureau. and also have them contact the collection agency you are making payments. asian623 http://www.myspace.com/scionturboracing
It is more likely the car will be repossessed by the lending agency, if you have defaulted on the loan. You may also be charged criminally. If you simply took a car without paying for it, this is classified as grand theft auto and, if caught, you will be charged criminally.
Yes they can and they probably will. if you are concerned about your credit profile, it would not be a good idea to stop paying.
Yes, especially if the arrangement is with a debt collection agency and not the original company. That you're paying the bill is good, but the history of having trouble paying it and the bill going into collections will be reported on your credit history.
collection i believe is a company that sets you on a payment plan to make it easier for you to pay. charge off you will never beable to get credit it is paid off but you will never be able to get a loan To my knowledge, charge off means the business charged it off as a loss and collection means they are pursuing the person for the money or paying an agency to pursue the person for the money.
It is important to pay bills on time, every month. A collection agency calls to help a person with their finances and with paying their past-due bill, they stop calling when it is obvious they are not getting what they need, and they need to send it to a persons credit.?æ
No! You need to be careful if considering paying the collection agency. At that point it will start the 7 years entry. Bad credit remains on a credit report 7 years from the last date of activity, in other words, the date you make a payment. Make sure you negotiate a deletion prior to paying any collection account. Source: Credit Bible by Phil Turner.
About two months after one stops paying for the vehicle.
by paying the bill or rebuy it at an aucton