Title and Lien Released From an Old Car Loan
A little background, I am a cosignor for a vehicle bought by my dad back in 1999. He made about $5k in payments and had about $5 left on the residual when he started defaulting. Needless to say, the collection agnecies starting contacting me back in 2003 and my mom agreed to take this on since this was not my vehicle. She ended up settling to sell the vehicle to a friend for $3,000. The collection company released the title and the lien and as far as I knew this was a settle matter. Just this past week, I pulled my credit report and saw the collection agency now trying to collect on $5600. Of course I called to see what happened and they advised that there was $2600 left on the account after it was sold and it accrued interest for 4 years to equal $5600. They are charging 17.9% interest on top of the balance. Also, I have never been notified of this charge. They advised me that it is my responsibity to do so which I understand but I would assume collection agnecies would try and seek me out through public records. Not sure if they tried to contact my father since we do not speak.
My question is do I have any recourse since the title and lien were released? I was threatened by the collection agency and denied to see what the original agreement was when it was supposedly settled.
Any info would be helpful.
Thanks.
Up a creek, MI
Re: Title and Lien released from an old debt
you are going to have to find out if the lender considered the loan paid in full when they released the lein.
If not, you owe. If they did consider it paid in full, there should be nothing to owe.
You're gonna have to talk with dad apparently to get the paperwork from the original loan. or maybe just go to the lender and ask them. Since you were a co-signer they shouldn;t have a problem showing you the file.