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Repossession Payment Plans With Debt Collectors

By on November 19, 2014

“Dear Michael,

Defaulted on a motorhome. It was repossessed and sold at auction. The balance owed after the sale was assigned to a collector. That collector and I made an agreement (contract?) that I would pay a certain amount each month until the debt was satisfied. I have made those payments faithfully for over 2 years-never late. Now the original creditor has taken the debt back and given it to another collector.

Is the agreement I made with them originally still in force?

Bill”

Dear Bill,

I have more questions than answers about the payment plan you made, or will make, with the debt collector. If you can answer my questions in the comment box below, I may be able to offer more specific feedback about dealing with the deficiency balance that remains after the repossession.

How much was the total balance the debt collector started with after the repo?
What is the balance owed today?

What were the set payment amounts you made monthly for the last 2 years?

Did you get the agreement you made with the debt collector in writing?

If not, did you receive anything in writing, like a payment voucher, invoice, statement, but after you started sending payments to the debt collector?

What is the name of the first debt collector?

Resolving Deficiency Balances with Debt Collectors after a Repo

You do not appear to dispute the amount that is being collected. And if all you want to do is set up the same payments to resolve the left over debt from the repo, it may be as simple as calling in and discussing that with the new debt collector. If you do not have the past deal set up in writing, you may not be able to get the same monthly payment.

It is a bit odd for the collector to send your file back to the creditor, or for the creditor to yank it back, when agreed upon payments are being made, and on time.

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What is the name of the new debt collector?

Who was the original lender on the RV?

Are the payments you agree to back 2 years ago all that you can do? I am asking in the event you can possibly do more, or even pull together a lump sum amount in order to settle the remaining collection amount for less than the total. Settling repo deficiencies is fairly common when no payments are being sent in. And this may be an opportunity for you to resolve the debt from that angle, as opposed to continuing with the payment approach.

Post answers to those questions in the comments below and lets go from there. Anyone reading dealing with a deficiency balance from a repossession is welcome to post comments and concerns below for feedback.

Michael Bovee founded CRN, a unique company offering debt negotiation education and services, in 2004. Bovee has been contributing articles and free reader feedback on this site for several years.

Michael is a debt industry professional who has volunteered his time to help answer reader questions.

If you have a debt related question you’d like to ask our team, just use the online form.

About Michael Bovee

Michael is an experienced debt expert and can be found online at Consumer Recovery Network.

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