Legal Question in Credit and Debt Law in Washington

Post-Repo Settlement

I had my car repo'd last winter and in August of 2006 (while I was unemployed) we recieved a call out of the blue offering a settlement of 30 or 40% of the debt. Since then, I have corresponded with this agency numerous times (they have called me at work now at least 3 times since being instructed not to) and have given them one payment of $350.00. I've asked for them to postpone any further activity until the end of this month (Janurary) and I will still be able to settle. They'll say ok on the phone, but then call and collect. Now they are saying the will not settle. And are going to sue. Is there anything I can do to extend this just a few more weeks? I was told that if I send them a certified letter and a check for the previously offered settlement price and in the memo of the check I write ''Payment in full'' and it is cashed, then it is settled. Is that right?


Asked on 1/16/07, 6:00 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: Post-Repo Settlement

Well gosh, was that an attorney who provided you that advice? =) Chances are it was not.

You need to do some research on the Federal Fair Debt Collection Practices Act. If you use that as a search term, you will learn what a collection agency can and cannot do. They cannot, for example, threaten to take action they cannot execute, such as filing a lawsuit, unless they are a law office licensed in WA.

Your bottom line choice is to determine whether or not bankruptcy is an option for you. If it is, that will stop their collection efforts cold.

If it is not, they can have an attorney sue you, get a judgment, and then commence collecting the judgment.

Read up on the FFDCPA. It'll help.

Powell

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Answered on 1/16/07, 6:13 pm


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