Loan Balance Responsibility

SingleMomOf5 · 1st June 2008, 12:48

Hi...

I was in a car accident and totaled my car over 1 1/2 years ago... My insurance company sent a check to the dealer (the dealer also handled the loan).

I thought everything was ok since I didnt hear anything from the dealer.

In February 2008, I went to buy a car and the loan was declined due to the former dealer stating that the car was "repossessed" in my credit report.

I called the prior dealer to ask why did they put "repossessed" in my , when the car was totaled. He said that is what they do when a loan balance goes unpaid. I told him I didnt even know there was a balance... Of course they said they sent a letter.. tried calling... this was all bull... I did not get any notice from them...

I told them I wasn't gonna pay the balance of a loan that I didn't even know exsisted for over a year and a half.

In May 2008, I received a collection letter for the balance of the loan that was over the book value of the car.

I feel since the dealer publicly published, in my s, that the car was "repossessed"... the remaining balance is no longer collectable...

Am I wrong?

Please help me ... SingleMom...

SingleMomOf5 · 1st June 2008, 12:53

don't know why the words "credit report" are not showing throughout the post... but they were typed in... "repossessed" was placed in my credit reports by the dealer

SingleMomOf5 · 1st June 2008, 12:54

LMAO

missing words are c r e d i t r e p o r t

Bigmac versus · 1st June 2008, 13:08

When you buy a car there is usually an option for covering the balance of the credit agreement should the vehicle be wrote off in an accident. Many people are caught out with this even when the cause of the accident was another party. That being said they have a legal obligation to correspond with you regarding any balance before submitting details to a Credit Reference Agency. Im assuming you have your credit file, if not order it and in the mean time send the loan company a S.A.R - (Subject Access Request) adding you want ALL data held regarding you including transcripts of calls and copies of letters. Do you still have the contract? if not you need to send them a CCA request.
Thats enough to get you started for now.

SingleMomOf5 · 2nd June 2008, 01:44

thank you for all that wonderful information... I will be looking into everything that you suggested...

SMO5

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