Question:

Can a collection agency repossess your vehicle?

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The original creditor charged it off and and now the collection agency is tryin to collect or repossess on the balance. How can the agency collect if the creditor already charged off the balance owed

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  1. it depends on if that is what the loan is on and your delinquent on your payments then yes they can. Better to call them and work something out because they really don't want a car. They want money. If you owe debt to someone else and your car is paid off then yes they can take you to court and ask the court for it to settle the debt. Again they don't want the car...but if the car is paid off and wanted for unpaid debt and if there is someone else on the title too then in some states they cant take it for unpaid debt. All states have a web page stating their statues  so you can check with your state laws there


  2. Only if the vehicle is collateral on the account that they are trying to collect on.

    Additional details.

    Charge off is simply a accounting term that means your original creditor wrote the loan off as noncollectable.

    This in no way means that you don't still owe the money.

    They then sold it to the collection company who now owns the loan and has the legal right to repossess the vehicle if you do not pay.

    The really bad thing is your original creditor will send you a 1099 for the balance of what they sold the loan for verse what you owed and you will have to claim it as additional income on your taxes.

  3. if it's teh collateral, yes.

  4. Yes.  

    Your loan company sold the debt.  You now ow the collection agency and yes, they have every right to go for the collateral.

    However, what is unusual is I have never known a secured creditor (an agency or bank who lends you money for a car or home) to sell the debt rather than reposess or foreclose.  Are you sure that your car is pledged as collateral? Do you have the title or does the lender? If the lender, now the collection agency, has your title then they certainly can reposess your car.

  5. Yes, if you defaulted on the loan, the original creditor can turn the account over to a collection agency.  They can repossess the vehicle.

    If they do, they will sell the vehicle very cheaply at auction and then come after you for the balance plus fees for the repo and auction.

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