On Your Own; Your Legal Right @ Eighteen On Your Own formatted final version | Page 17

In most cases, once a creditor repossesses your goods, you will be notified
in writing that the goods will be sold at public or private sale. Until that
sale occurs, you have the right to redeem the goods by paying the entire
unpaid balance owed plus reasonable collection costs.
NOTE: If the sale price doesn’t cover the entire balance you will have to
pay the difference. But if the goods were sold for more money than you
owe, the creditor must return the surplus to you, though reasonable
repossession costs may be deducted.
If you simply can’t pay your debt and you’re thinking of letting your
creditor repossess your goods to take care of the problem once and for all,
think again! If you turn the goods back in, a “repossession” notation will
be made in your credit report files. Consider selling the goods and paying
off your loan. That way a repossession won’t show up on your credit
record. (Before you sell the goods, you must get permission from your
bank or credit union, if they hold title to the goods.)
Debt Collectors
If you stop paying on a loan or retail installment contract, or if you owe
additional money after the goods are repossessed and sold, the creditor
may hire a “debt collector” to recover the money you owe. All collectors,
wherever located, are subject to the provisions of the Fair Debt Collection
Practices Act (FDCPA).
The law protects consumers in many ways. For example:
x
x
x
Whenever a debt collector calls you, he or she is required to tell
you they are trying to collect a debt.
If you ask, a debt collector must “validate” the debt—i.e., tell you
who the creditor is, how much money is owed, and how to dispute
the debt.
If you don’t want to be contacted at all by the debt collector, you
can write to the collector to stop contacting you. Your written
request must be honored.
13
13