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  1. #1
    Join Date
    Feb 2008
    Posts
    1

    Unhappy Voluntary Repossession

    I had bought a car in july of 2004 for $10,000, while living with a boyfriend and raising my daughter. In january 2005 he moved out leaving me with my daughter, rent, and the car and insurance payments. I couldnt afford it and fell behind, only by a month but i knew it was going to get worse before it got better, so i decided to have the car voluntarily repossessed. After what i managed to pay off and what they got for it at auction I still owed a little over 5600. A local debt collector finally got a hold of me a couple months ago, however they are saying i owe over 11000. They said that its the interest that has continued to accumulate since i had it voluntarily repossessed. How is that possible?
    also when i checked my credit report it says im delinquent on just over 5600.
    Where does the $11000 come from?
    also since a debt collector obviously bought the debt, is there anyway to still deal directly with the original loaner?
    thanks for any help!
    btw i live in pennsylvania

  2. #2
    Almosthome Guest

    Default Re: Voluntary Repossession

    Quote Quoting cvrgrl2001
    View Post
    I had bought a car in july of 2004 for $10,000, while living with a boyfriend and raising my daughter. In january 2005 he moved out leaving me with my daughter, rent, and the car and insurance payments. I couldnt afford it and fell behind, only by a month but i knew it was going to get worse before it got better, so i decided to have the car voluntarily repossessed. After what i managed to pay off and what they got for it at auction I still owed a little over 5600. A local debt collector finally got a hold of me a couple months ago, however they are saying i owe over 11000. They said that its the interest that has continued to accumulate since i had it voluntarily repossessed. How is that possible?
    also when i checked my credit report it says im delinquent on just over 5600.
    Where does the $11000 come from?
    also since a debt collector obviously bought the debt, is there anyway to still deal directly with the original loaner?
    thanks for any help!
    btw i live in pennsylvania
    You probably could deal with the original creditor. Try it and see but be careful because the run around is possible. Make sure anything you do is followed up/confirmed in writing.

    As for the amount - it depends on your interest rate and they always tack on all sorts of ridiculous fees so ask that question to the collection guy - how do they arrive at $11,000?

    If you calculate $5,600 at 12% interest for 3 years you get $2,016 in interest.

    The formula I used is the simple interest formula, or: I=pxrxt

    Where:

    * P is the principal amount, $5600.00.
    * r is the interest rate, 12% per year, or in decimal form, 12/100=0.12.
    * t is the time involved, 3....year(s) time periods.
    * So, t is 3....year time periods.

    To find the simple interest, we multiply 5600 0.12 3 to get $2,016.00

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