What can I do if I have been sent to collections less than a month before my car loan payoff would be final?
Question Details:
I have a car loan that would be completely paid off by now if I had not skipped 3 payments due to loss of income (none of these 3 skipped payments was consecutive). I called my lender on Nov 13th to ask about the final payoff amount. The rep told me the amount and broke down for me how much of it was late fees, informing me that I had to have the final amount of $1085 by Dec 8th. I planned to pay it in a couple payments between now and then. Now, I have been sent to collections and don't know why. And collections is asking for an additional $625 on top of what I owe. I don't even understand why?
Business Law Answers
The colections company is seeing to collect money from you based on the terms of the contract that you signed promissingt to repay the car loan. among the promises you made, you agreed to late fees, interest, and collection fees in the event that the company had to sue you to collect the balance. becasue you are in default of the loan based on the fact that you missed 3 payments, the collection agency is tacking on interest, late payments and whatever other charges are in the contract. The contract controls here the the court will permit the lender to collect the full amount based on the contract. i suggest that you pay the amount in ful as soon as you can to eliminate this debt and prevent the lender from repossing the car.
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