Legal Question in Credit and Debt Law in Georgia

Assuming the $2668.00 is correct that is what you owe. Paying the smaller amount won't help.

Time after time people really screw themselves when they read about "validation lettters" online. While there are times when you do want to request proof of a debt, one time to don't is when you get a demand that is smaller than expected. At that point the smart thing to have done would have been to talk briefly with your lawyer and then try to lock that amount in.

At this point it may still help to see a lawyer, depending on what is owed and what the two letters say. But you may have messed up.

If they have an attorney, you should only be dealing with the attorney, not directly with the creditor. When a car is totaled in an accident, the insurer only has to pay the reasonable value of the vehicle. If more is still owed, that is your responsiblity. Life is not fair but that's the way it is. So whatever was left owing on the car minus the insurance proceeds is what you are responsible for. I assume that you did not buy back the car for salvage value - if you did, this sum would be added in.

That all said, the car loan balance becomes like any other unsecured debt. It can always be settled for less than the actual amount. Some people will roll this over into the cost of another vehicle. If you do that, you will quickly find yourself upside down in the new car loan so I would avoid this if possible.

If you can afford to do so, offer to pay a lump sum in the $915 amount and ascertain whether this will be accepted by the car lender as payment in full. Make sure that you get a settlement letter indicating that this sum will be accepted BEFORE you pay. Also, make sure that your credit report will be updated once payment is made. That should be in the letter too.

You might want to ask the lawyer why the car lender says one thing and the lawyer another.

If the attorney/car lender will not accept the $915, then increase your offer a little and see if they will budge and give a lesser amount.

If you want help negotiating your debt, I can do so for a reasonable fee. Please contact me if you are interested at [email protected].