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Old 11-08-2009, 03:09 AM   #1
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Default Debt collectors and my car??

Just wondering if anybody knows if debt collectors can take my car once it's paid off? I've been out of work and have started going through the collections process on 3 different credit cards. My car is only a few months from being paid for and I was hoping to start focusing on my unsecured debt after i paid it off, but don't know if the credit card companies can/will take it once the title is clear to satisy the debt. Anyone?
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Old 11-08-2009, 07:20 AM   #2
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Dont quote me but I'm pretty sure they can't. If it makes it to court wage garnishment can be about the only thing and of course they will hit your credit report, but I dont think a collections agency can take something you own.

That being said have you talked to the credit card/collection agencyies and told them you are out of work to work with them?
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Old 11-08-2009, 10:36 AM   #3
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Yeah, just talk to them. They'll work something out with you, or at least note that you're unemployed and ease off a bit. I know this from personal experience...
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Old 11-08-2009, 12:12 PM   #4
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they cant do it legally without first taking you to court. the same for wage garnishment.

but there is arbitration and "the rubber court" which is basically a retired judge who can stamp and sign papers for them to garnish your wages, without you having a court date. it should be illegal, it screws you out of your rights. if they serve you arbitration papers that means thats what they are doing. if they do, refuse the papers. but as far as personal property goes, i think they have to do that through real civil court.
also send the debt collectors a debt verification letter. they need to prove they own the debt or have been assigned it.

these kind of people are nothing but thugs. dont be scared of them. demand proof of everything and keep records.
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Old 11-08-2009, 12:19 PM   #5
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Thanks guys. I've recently started working again and will be starting wage garnishment with one of the compaines soon. Just scared that the other two agencys will swarm in and take my car the minute it's paid for. Anyone else?
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Old 11-08-2009, 12:56 PM   #6
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the only one that can take the car is the company the car is financed through.
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Old 11-08-2009, 01:07 PM   #7
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Quote:
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the only one that can take the car is the company the car is financed through.
This is correct, the CC companies cannot take your car. I would really try talking to the CC companies and try to work a deal without agreeing to having your wages garnished.
Try and see if they will lower your balances and interest rate.
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Old 11-08-2009, 02:36 PM   #8
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I know the credit card companies can't take it now because I still owe on the car, it was after the car is paid for I was worried about. Don't want them to take the one thing I own after it's paid for.
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Old 11-08-2009, 04:45 PM   #9
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Quote:
Originally Posted by solobaric View Post
I was hoping to start focusing on my unsecured debt after i paid it off,
You answered your own question. There is no collateral of any sort attached to the outstanding debt--hence the term unsecured. In short, no they cannot take your car.
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Old 11-08-2009, 04:57 PM   #10
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Dude, your car is safe as long as you are making your payments on it. The credit card company cant take anything you own. Now banks can and will go after real estate if you own any of that and you owe the bank money but thats about it really.
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Old 11-08-2009, 05:11 PM   #11
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They can try. And if they do, you can kick it in the Bahamas sippin' a frosty adult beverage after you get that huge settlement from them stealing your car.
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Old 11-08-2009, 08:37 PM   #12
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^ Unless they can prove that you used their cards to pay for your car
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Old 11-08-2009, 09:31 PM   #13
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Quote:
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^ Unless they can prove that you used their cards to pay for your car

no they cant.
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Old 11-08-2009, 09:58 PM   #14
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no they cant.


a credit card is an unsecured loan, unsecured = no lien, no repo

thats one of the reasons why i bought my T/A on a CC back in 04 because i figured if something did happen at least i wouldn't lose the car, that and the 3.99% interest rate for life on the convenience check was cheaper than a standard used car loan would have been.
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Old 11-08-2009, 10:10 PM   #15
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Quote:
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a credit card is an unsecured loan, unsecured = no lien, no repo

yes. BUT if a court rules in the collector's favor they can be awarded property, like your land, house, or car, that is in your name to compensate for the debt. but that is highly irregular. it depends on state laws and your wages situation.

i think this mostly happens in an extremely high debt situation though.
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Old 11-08-2009, 10:35 PM   #16
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Thanks for all the responses so far guys! I'll sleep a little better tonight, lol!
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Old 11-09-2009, 04:58 PM   #17
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Ok a cc company can not come after your vehicle if it was not purchased with the cc, they can though come after major purchases if they want as part of the settlement process and or arbitration process.


Ie you buy $10,000 worth of stereo stuff and flip them the bird they can get a arbitrator to award the equipment back to them. I worked for circuit city as a store manager for years and our credit card company would do this all the time with settlement offers. Customers would bring the merchandise back into the store and we would give them pennies on the dollar back against the debt.

In your situation you are safe, but as someone posted above about buying a car on his cc so they couldnt take the car guess again. They can and will take the car if you default on a credit card and have a large purchase on it that they win in arbitration.
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Old 11-09-2009, 05:14 PM   #18
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now here's a question. While i did technically buy my car with the credit card, how would they know?

I wrote a $6500 check to myself and took $6k in cash and bought the car from a private seller and used the rest to pay the taxes/tags at the DMV. they could speculate that i used the CC money to buy the car but there would really be no way to prove what i really bought. FWIW my credit cards have been paid off for a couple years so i'm not really worried. (right now i'm debt free.....and unemployed, lol)
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Old 11-09-2009, 05:14 PM   #19
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^big difference between an in house store card and a major credit card.

Whichever bank issues the Circuit City credit card had an agreement with Circuit City to resell things for them, or at least buy things on the cheap.

Most major credit card companies are not in the used auto business. Legal costs associated with obtaining the car combined with storage and selling cost would likely prove the endeavor to be a larger loss than the balance. Not to mention they can ultimately write-off the defaulted balance which makes the legal and selling costs that much less appealing. ie: You default on $10k, they pay 40% tax, when written off (provided they are turning a profit) they are actually losing $6k.

Where it might get interesting is if/when they sell off the debt to someone else. The someone else might be much more interested in going after your personal property if they are also in the used car business. ie: CapOne sells your $10k to Frank & Beans Inc who runs Frank's Collection Service and Bean's Used Auto Mall. In this case Frank's might win a decision to take your property and would be happy to take your ride as they have an outlet to sell it. This of course rests on the notion that they can sue to take your car, which I am not sure if its even possible.
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Old 11-09-2009, 05:14 PM
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