I’m Divorced, Disabled, and Being Chased for an Old Car Loan. – Angelica

“Dear Steve,

Over ten years ago maybe more I got divorced, lost my job and was pretty much homeless then my car was repossessed and want I found out is that Collection agencies have been reselling my loan keeping it for about 30 days then reselling it again I was told that is illegal they call then a month or so passes then another company calls for the same debt but now the amount is more when I lost the car the loan was for about 7k and now its about 17k. I have told them I have been disabled for over two years now on SSD and I cannot afford to pay it I can barely afford rent, food, light and my gas bill for my apartment I need help but every where I look they want to charge me money I dont have PLEASE HELP..

I found out that the Collection agencies have been reselling my loan keeping it for about 30 days then reselling it again I was told that is illegal is it and is there a government or help for people that are on SSD for low or no cost for fixing credit???


Dear Angelica,

I’m certainly sorry to hear about your bind. While it is certainly stressful, with a little work, it should be a moderately easy issue to deal with.

The first thing I’d do is get a consolidated credit report and look to see who is reporting this information on your credit report. You can also request your credit reports at annualcreditreport.com for free.

The negative history on the car loan should not be reported for more than 7.5 years from when the loan went delinquent. It should not be on your credit report at all at this point. I would recommend that you fill out a dispute with any credit reporting agency that is showing the account still.

What the collection agency or bad debt buyer is doing is falsifying the start date of the account to keep in revolving on your credit report. That’s not allowed.

See also  I Am Permanently Disabled. Should I Take Money Out of My 401(k) to Pay My Credit Card? - Jeri

When it comes to the collection companies that are contacting you, I’d send them a letter and tell them you dispute the validity of the debt. Here is a post about information you should demand they provide you.

I doubt they will be able to provide it and if not, the pursuit should end there.

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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