Reposession now suing

[tarast03]

Our truck was reposessed due to not being able to afford it anymore. Company called and sent letters and we told them we didn't have the money to pay for it. We owed $18,000 and now we owe $21,000. A third party called today that was some type of pre-trial or pre court company to give us our options and try to get us to settle out of court. The guy mentioned that if we did not settle with that company that they could put a judgement or lein against us. He also stated that they couldn't garnish our wages due to texas law but that they could go after our licenses for work or whatever. What exactly can a financial company do to us to get their money?

 

[tpajet]

Something isn't right here.

First of all, once the truck got repossesed, you wouldn't owe more than the original debt. Once the bank sells the truck, you are liable (if they choose to collect) what's called the deficiency, which is the difference between what the remainder of the loan was, and what they sold it for. So let's say that you still owed $18,000 on the truck, and the sold it for $15,000, then you only owe them $3,000.

You need to verify where they are coming up with you owing $21,000 now. Tell them you are not agreeing to anything until you first see how much the vehicle was sold for.

Before you do anything, though, you need to visit this site: FTC Fair collections practices

It sounds like this compnay may be on the borderline of violating the law.