What is the step to take after a voluntary repossession when I can’t afford the deficiency balance?

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What is the step to take after a voluntary repossession when I can’t afford the deficiency balance?

I did a voluntary repossession. Now it GC Services collection agency has contacted me for a payment arrangement, that I have agreed to pay $50 a month. They told me that I may be hurting my credit more by doing this because they will have to continuously run my credit as they continue to make offers every few months. Is this true? They said they have not purchased the account and NMAC does not sell their accounts. Is this true? They told me they cannot provide me with any written proof that I have a standing agreement with them. Is this true? What is the best step to take after repo?

Asked on June 20, 2009 under Bankruptcy Law, Florida

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Oftentimes, in certain types of credit pulls, the more your credit is pulled, the more your score goes down.  Your best bet: check with your state's banking department to determine if they regulate the particular entity with which you initially had the loan.  Then contact the Florida Attorney General office to help determine if they can help you with the collection agency issue.  You will need to pay your deficiency judgment... you basically contracted to me. 


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