Last year my son was about 2 months behind in car payments, then he got into an accident with his car. He was tried of the bank calls and them making threats about repossessing his car, he told them go ahead, it is in a lot and was in an accident. Then balance due on his vehicle was about $16,000. The insurance gave him a check for repairs, $3,700, the car lot guy charged him, $220 for storage/towing, which he paid, out of his pocket and mine. The bank took possession of the car and had it towed to be sold at auction. Down the road we found out via mail that it was sold for about $12,000. My son mailed the $3,700 check to the bank to be put towards the balance of the car, which it was applied, no problem. Then, last fall a collection agency call him saying that he stilled owed a balance due, this was months after not hearing from anybody...
I am talking 9 months later, this guy wants blood, $1,500!! For collection and back interest due. Okay, no problem, the kid puts it on his credit card. Problem solved...no way! Now the bank, send out a tax form and one to the IRS, a "Cancellation of Debit" !!! What is this for??? He got hit with $7375.00 of added income, for what? The car got paid off!! The bank got all their money, my son got nothing!!
Somebody, please explain this to me. The notice had a cancelled date on it of June 6, 2007. Can anybody help...did papers maybe cross over in the mail or what?? Thanks.

