advice please...

[crystalhattery]

Ok I need some advice..I did post this somewhere else and I'm hoping someone can help me out..
ok we got a vehicle through a buy here pay here lot..that originally didn't need a credit check..later down the road she goes out of business..or skips out..then we didn't know where to mail the payments..so now CB&S Bank contacts us saying they recovered our infomation form her computers..anyway so meanwhile our car needs a new motor..we made two payments..no recepits were mailed to us..then they kept saying there maybe something they can do to help our situation..so we got quotes on repair and it's gonna cost more to fix it than what it's worth..so I called the lady back to inform her of this info..then she says she's not over our situation anymore and it went to the banks collection department..so I called her and to see what we can do..the lady there said we hadn't made a payment since july..so I had to correct her and let her know that we did send two payments..so she said well I will get a balance and get back with you..so I called her today and first thing when can you make a payment..I reminded her of our previous conversation and again she said well let me see what I can do and call you back..now any advice on this would be great..I really have no clue what to do..we REALLY don't want a repo on the CR..HELP Please!!!

[Lian]

To my mind, the issue of prior payments to the original creditor are kinda moot as far as your obligation to now resume payment. Prior payments to the OC will, of course, affect your overall balance due, but once the new creditor obtained the account and sent you a billing statement, it appears that you would be obligated to make timely payment within that period.

So, from what you have said, the key to me is any recent billing statement sent to you, and its due date. Did they ever send you a written billing statement setting a date and amount due? If so, unless its terms are not in compliance with your original contract, you would be obligated to pay by the date set in the billing statement. If payment is not timely made, and extends to 30 days past the billing due date, they can then report a 30-day late to the CRAs, and begin impacting your credit score.

You state that it is in their "collection department." How so? You do not appear to be delinquent on a billing statement that you had the ability to timely pay. I think they are a bit premature in asserting collection. I certainly dont think they could now send it to a debt collector unless you become in arrears with THEM.

[crystalhattery]

Thank you for replying. This has been a nightmare to say the least.

I hope I answer all of your questions.as far as billing statement. The ONLY thing we have gotten was a letter saying that all of our future payments need to be mailed to the bank from now on. I mailed two payments the last on the 14th of last month..but nothing other than the letter..the only thing I do know is the balance which was told over the phone..that's all I have.

[Lian]

It appears that their implication is that the payment terms of your contract with the OC still apply, and now that you have full instructions on how to pay, they expect monthly payments per your original agreement.

I would interpret their letter as a billing statement, and resume regular monthly payments. If you don't, I would expect them to begin reporting lates and/or consider a charge off or collection.