Divorced, car under both names got repossessed and they want $5000 fee

Question

Got a call from a debt agency. Ex husband surrendered the car (repo) and didn't realize it was in my name too. Agency wants $5000 and it'll be "paid in full" or $3000 and it'll be "settle in full". I don't really know how all this works. Had good credit before this happens. So now my credit's bad but it won't be so bad if I pay that fee? We verbally agreed that he would take the car so it wasn't in the divorce paper.

Answer 1

Get the agreement in writing. Ask that they delete the item from you credit file in exchange for payment.   If they won't delete it, it will hurt your score.  However, a paid bad debt looks better than an unpaid one.

Take the $3K settlement.  Then go after your ex for reimbursement.  You should be able to file in small claims.

Answer 2

Do this and you will be fine

step 1

if you didn't sign any loan papers you can't have bad credit from it cause it means someone forged your signature.  if this is the case dispute it with the credit bureau and the credit bureau legally must take it off your credit report. if they don't you can sue them and win money.

If you did sign, go to step 2

step 2

make them clear the loan off your credit report completely in exchange for being paid.   its legal and they can do it.  if they say they can't they are lying, just like the ex is lying when he said he didn't know you were on the account.  make them put it in writing that they will take it off the credit report.  don't pay them til you have this in writing from them.

Answer 3

Sorry........your out..........get it in writing..........an pay it.......