Best Buy/HRS USA

[cb2boys]

We filed Chp 7, and it was discharged Feb of this year. I've rec'd 2 letters from the "Law offices of Bass & Assoc" on behalf of Best Buy/HRS USA...The letter states: "We have been informed that your case has been discharged. Pls be advised that our client is secured by a purchase money security interest in consumer goods. If you intend to voluntarily surrender the collateral please provide the information requested below: Name of person for making arrangements for return of collateral:____________________. Day time phone number for contact person: _______________________."

Can anyone tell me what this means? Are they asking me if we are going to voluntarily surrender items purchased with our Best Buy card? Are they going to sue us to make us surrender items purchased? Do I need to respond to these letters?

Thanks!

[BassBoy]

It means you purchased an item (like a T.V. or stereo) and that item is a secured item. The creditor has a right to have it back.

Purchase money security interests

These security interest are lien rights that the seller retains in the goods purchased when the seller finances the purchase. The lien can be created by a specific written agreement or may arise when the item is financed on the seller's revolving credit plan or store credit card. This kind of lien does not have to be perfected by the usual filing of a UCC financing statement.

In theory, if the buyer discharges his personal liability on the debt through bankruptcy, the seller retains the right to reclaim the goods. For example, Sears, Best Buy and Circuit City credit plans give the seller a security interest in the goods purchased.

Contrast: if you buy the same goods using a Visa or MasterCard (credit provided by a lender other than the seller), you get clear title to the goods. Even if you discharge your liability on the credit card, the goods charged to the card are yours, free and clear of any security interest in favor of the seller or the credit card issuer.

Purchase money security interests can be avoided or stripped down to the present value of the collateral only in Chapter 11 and 13.

It is the experience that creditors with purchase money security interests in consumer goods almost never file a law suit to enforce their interest in the goods. They are not really interested in the goods. They rely on the debtor's fear of repossession to "encourage" debtors to pay for things with little present market value.

[cb2boys]

Thanks for the quick response..How do I know which items they are referring to? We've purchased several items through Best Buy over the last 15 yrs....ranging from 2 computers that we don't have anymore, a car stereo we had installed in a vehicle we don't own anymore, etc...

What should our response be to their request. What should I expect if I do not respond to their request?
Thanks!

[BassBoy]

Hmmm, I would have thought they would have been specific as to what items they were referring to. What had you purchased shortly before you filed? At any rate, I would make them be more specific.

[keepmine]

I'd not respond at all.
They don't want old second hand consumer products. They want money but, they can't ask for money without vilating the permanent injunction.
The cost of pickup, insurance, storage and refurbishing and sales makes it unfeasable.
Just ignore them and they'll go bother someone else soon enough.

[dep05]

We got the exact same letter from them and several phone calls. After doing some research online, we decided to completely ignore them and so far it has worked. From what I've heard, they simply bought the debt from Best Buy and have absolutely no idea what you actually bought from them. They are hoping to scare you into making a deal to pay them for the stuff you bought. I say ignore them, don't tell them anything.

[lrprn]

About a week after we filed Ch 13, we received a form letter from Bass and Associates saying they picked up our BestBuy account and asking us to fill in all of our personal information plus bankruptcy case number and return it to them (yeah right - like we are going to voluntarily hand over all our contact information to a collections agency). Our Ch 13 lawyer advised us to just ignore them and sent them a "they filed bk, you morons - no contact allowed" letter just to make sure they were officially notified at their business address.

[Busted42]

I got my first call from Bass & Ass today....I told them I had no idea of what they were talking about and that I would counsel my attorney, the woman on the other end said, ''ok''. End of conversation.

[Princesskina]

By the way u said u purchase many items over 15yrs ummm isnt there a SOL?

[Stephie-Lynn]

Sorry to bring up this old thread, I'm new here and reading a lot (learning too!).

Has anyone ever had Gateway refer an account to these Bass & Assoc people?

For the people that ignored them, did they just go away? They can't sue after the discharge, correct? So this is just scare tactics?

[cschon911]

wait a minute

Didn't they object before the discharge? How can they just send a letter now, after you are discharged? We are dealing with the same law firm
for a best buy debt and we had to sign reaffirmation papers at our attorneys office. No, we didn't have a choice. They had a secured interest in the property.

[destitute]

My attorney just faxed over a letter from Bass & Assoc for best buy today. It's their second notice but doesn't list the items they want. With permission from my atty's office I called them and told them that I have no idea which items they are referring to and until we receive both an itemized list of secured items AND the original signed contract granting them security interest I have instructed my attorney to ignore them. They said they will fax all of that before the end of the day today but somehow I doubt it.

I've had the account with best buy since 1997 so I'll be real surprised if they can come up with my signature. Hopefully they will just go away.

[whipster1]

I got the same letter, my atty said to round-file it

[mgmadara]

We filed in 2005 and after we were discharged we got 2 letters from them and a few phone calls. We ignored the letters and didn't answer the calls. They are trying to scare you into giving them some money. Ignore them and they will go away.