Legal Question in Credit and Debt Law in Texas

My son bought a car from one of those Buy Here/Pay Here car lots. After making 2 payments he totalled the car. The Dealer agreed to a toal pay-off amount for the car, received the check from the insurance and sent the insurance company the title. After all this the car dealer says my son still owes them $456.00. When we asked for a statement so we could pay the outstanding amount they told us my son was no longer in their system because the insurance company paid off the vehicle so they were unable to give us a statement. They told us they turned the outstanding amount into the credit bureau as a charge off and that as my son paid them off they would report it as a "recovery". None of this makes any sense at all!! How do they expect him to pay on a debt with no statement, hence no total???


Asked on 8/27/10, 10:48 am

1 Answer from Attorneys
TC Langford Langford Law Office

It sounds like a scam. Send them a certified letter demanding to see the paperwork to justify the payment; including their explanation as to why this was tendered to the insurance company. Your son needs to check his credit report, and if it is negative, he needs to dispute it, and include a copy of the letter.

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Answered on 9/01/10, 1:27 pm


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