Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
Jamcorbel

0 Contributions
0 People Helped
Can a company still charge fees even after your debt has been charged off and sold?
I purchased a vehicle using a loan from a credit union. About a week after this I was called on orders for the Wisconsin Army National Guard for State Active Duty. I notified the credit union of this and under the SCRA the interest was to be capped at 6%, however they did not cap the interest. I calculated what the loan would be if the interest was capped and paid that amount. This resulted in the loan going into default then being charged off. Even though the debt has been charged off and sold to another company I continue to get charged almost $200 a month in fees and late charges. What can I do to resolve this? Also it shows on my credit report as still being with the credit union with one amount and the collection company sends letters showing another amount owed.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1929 Contributions
3799 People Helped

Your first mistake was "calling" them

All financial transactions should always be handled in writing. Always. 

If you had written notifying them of your service and requesting SCRA terms they would have had to comply. With out a paper trail you have no proof that you actually notified them  

to deal with this now.  First start with a "validation  letter " for each account.   google It for info on how they work and a template  hand write your letters never print them out  

This will require the credit bureaus to verify the accounts accuracy and their legal right to collect  

once validated you will have a better idea with what you're dealing with. You may need to seek advise from a lawyer  you may have a case against the bank if you can prove they mishandled the account  

good luck  

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.