i made a "good faith" payment.. is it too late?

[paxton86]

I recieved a phone call on the 30th of last month, saying that if i couldnt come up with $9500 by the end of the day, the matter would be taken to court for the amount of $15,xxx. i had my bike reposessed months ago, and this was the first i had heard back from them since. as she suggested, i made a good faith payment by using the available credit on a different card for $2000 and when i get home, i start doing my research and see that i shouldnt deal with collections, only the original creditor, and not agree to anything on the phone, only in writing.. so my question is.. is it too late? by making a payment to the 3rd party collection agency am i along for the ride at this point? is there anything i can do get back on the right track?

From the reading i have done, there is a lot of usefull information and very helpful people, and i appreciate the responses

[DebtHater]

At this point you may not have any choice but to deal with the third party creditor. You are correct about getting any agreements in writing. I wouldn't worry too much about you're good faith payment. While in the short term it did give them the edge, moving forward don't let them have the advantage.

Just curious, if you owe $9,500 after a repo, am I safe in assuming this is the amount you're upside down? Are you considering or in the process of filing bankruptcy?

If the $9,500 is amount due after auction I would request a copy of the bill of sale and then negotiate a settlement. Being you made a $2,000 payment I don't know how willing they will be to deal with you.

One additional word of advice, don't use credit cards to pay other loans, you will get into trouble.

[frogger]

I hate to say it, but you fell for one of the oldest tactics in collections. Today, today, today. You must do this today.

Do you know why you must do it today? To help the collector meet his/her quota for the day. Just because it is an emergency for them does not make it an emergency for you.

And all you really did was swap the debt from one shark to another.

As you know - nothing matters unless it is in writing and has signatures on it.....

[ValleYum]

This may sound utterly dumb, but is it too late for her to get a chargeback on her credit card for the 2k?

[df04527]

My opinion here ...

CHARGEBACK is an EXCELLENT idea. We all make mistakes and most of us learn AFTER we've made the mistake. Contest that charge NOW - you were pressured and because of BK it was NOT the right thing to do. The trustee will also not like it very much either.

And from here on out - DO NOT ANSWER your phone. The effect on a credit report is a totally seperate matter.

[paxton86]

yeah, as soon as i got home i realized what i had done. the loan was for a motorcylce and when i lost my job and took one that payed way less, id make the payments i could, but with the interest and fees the amount due skyrocketed. i havent reieved ANY paperwork as far as what the bike was sold for at auction, how much i actually owe, so on and so forth.

i have thought about bankruptcy. this is the only debt i have and it seems like it would be the easiest/best way instead of paying large amounts of money and still have to bust my a** to fix my credit.

about the chargeback.. what would be the action to take there? simply tell the collections agency i want it back? that it was under duress?

the job i took was bought out by a rival company, and so im unemployed but collecting benefits. the collections agency wants to do set up a payment plan, and ive explained any money i could spare would be minimal. would i be better off attempting to make payments? or just waiting until im more financially stable? i plan on calling the collection agency today, but id like to have all my duck in a row.

so far, i need to have them mail me paperwork.. for the bill of sale, total amount due, and what else?

and also, i havent signed anything, its all been over the phone. again, i really appreciate the help

[DebtHater]

If this motorcycle is the difference in making ends meet then sell it. There is no motorcycle that is worth the hassle of dealing with collectors and wondering where the next payment is coming from. If push comes to shove and they repo it, it will be sold at auction and you will be responsible for the difference. If you sell it private sale then you will likely get more for it.

[df04527]

I believe the chargeback originates from your bank or card you used to pay that amount. Contact them and they will probably have you fill out a form (or two) but they will run with it from there. I've not done this and is a best guess at how it works.

I also think that if this is your only debt and your only problem and your unemployed and/or have unstable employment then BK may not work for you at this time. BK is a big deal and a big price to pay for just one debt.

So I believe the first thing you need to do is to examine your situation on paper with everyone listed that you owe - see what that looks like and then decide if BK is the right thing for you. Unfortunatley this is a decision you will have to make on your own.

If BK is NOT what you want to do -- setting up a payment plan with a collector is never the way to go but under your circumstances it might also be your best option.

I hate to sound wishy washy here but there is alot of consideration that goes in to these decisions and I believe you need to make a decision on which way you want to go.

Good luck to you

[ValleYum]

yeah, as soon as i got home i realized what i had done. the loan was for a motorcylce and when i lost my job and took one that payed way less, id make the payments i could, but with the interest and fees the amount due skyrocketed. i havent reieved ANY paperwork as far as what the bike was sold for at auction, how much i actually owe, so on and so forth.

i have thought about bankruptcy. this is the only debt i have and it seems like it would be the easiest/best way instead of paying large amounts of money and still have to bust my a** to fix my credit.

about the chargeback.. what would be the action to take there? simply tell the collections agency i want it back? that it was under duress?

the job i took was bought out by a rival company, and so im unemployed but collecting benefits. the collections agency wants to do set up a payment plan, and ive explained any money i could spare would be minimal. would i be better off attempting to make payments? or just waiting until im more financially stable? i plan on calling the collection agency today, but id like to have all my duck in a row.

so far, i need to have them mail me paperwork.. for the bill of sale, total amount due, and what else?

and also, i havent signed anything, its all been over the phone. again, i really appreciate the help

RE Credit Card Chargeback: No, call your credit card issuer and tell them that an alleged debt collector buffaloed you into giving them a payment - and thinking about it, you are very concerned since you did not have them validate the debt and further that you are really worried that the transaction could possibly be fraudulent.

[paxton86]

valleyum, thank you very much for that, ill make the phone call to them immediately.

doing that, would i be better off contacting the original creditor and trying to make small payments to them until im financially stable enough to save up the cash for a settlement?

debthater, the bike has been repoed and sold at auction. if i had the option of selling the bike private seller, i would have. they dont hold their value so trying to sell something for way less than i owe while they have the title wouldnt have worked

[paxton86]

i recieved a letter today at my old address even though they have my current address on file. the only way i got it was because my old roommate still lives there.

the letter had two peices of paper, one for the reciept of my good faith payment, and one that states " this letter is to remind you that stellar recovery inc. has agreed to accept a monthlypayment from you. should your payment not be recieved on the agreed upon date, the entire balance becomes immediately due and payable. as we have previously agreed, your paymentof $7500 is due in our office no later than 12/15/10. you may also visit for online payment access. if you do not have access to a computer right now you cam call our automated payment line at 877-236-5791"

i never agreed to a monthly payment, just that if i could make a monthly payment, it would be small, and id have to check my finances before i could come up with an amount. and i was told that the 2000 dollar payment was to buy more time to check into what actions i could take. i NEVER agreed to a date in which it would be paid, especially not two weeks later. i know i need to send them a letter via certified mail, but what exactly should i include? i know i need to dispute the pay off date, and state that monthly payments were never agreed to.. anything else?

[df04527]

did you do the chargeback?

[catleg]

Dispute the charge with your card.
Visa/MC rules for telephone purchase/card not present are very liberal in favor of the consumer.
Don't admit you gave authorization then rescinded it.
Just state that the card was used without your knowledge or authorization.

P.S. With a contracted debt there is no such thing as a "good faith payment", either you are in compliance with the contract or you are not (you are then considered in default).