Expert: Ontrack Financial Group llc - 6/4/2008

Question
QUESTION: Prior to our marriage, my husband had a vehicle repossessed.  The original balance he owed GMAC was $17,500.00.  He set up a payment plan and we have faithfully paid $100.00 per month and have very thorough records to prove this.  Unfortunately my husband does not possess the original documents provided by GMAC at the time of the repossesion.  We recently noticed that his credit report states that GMAC cannot locate this consumer (my husband) and therefore have written off the amount as a "bad debt."  In order to get to the bottom of this, my husband has requested all the original documentation be provided but GMAC is refusing to provide this.  We haven't told them why we want the documents, but believe we are entitled to copies since our originals were lost in a move.  Our question is this:  does the statement "written off as bad debt" mean that GMAC has taken a tax advantage from their apparent "loss," and if so, can they also continue to legally accept repayment from us?  Please note that although his credit report says GMAC is unable to locate consumer, we receive mail from them each month at our home (again, I have thorough documentation), and my husband has received calls from them on his personal cell phone.

ANSWER: Leslie,

The creditor has written the debt off ( taken a loss ), however you are still liable for the pay back of the contract.  The company can obtain judgment to recover the loan.

Who is servicing the loan now, the original creditor or a collection agency?

Ontrack Financial Group

---------- FOLLOW-UP ----------

QUESTION: Thank you for the prompt reply.  The original creditor (GMAC) is servicing the loan.  As I mentioned earlier, they are refusing to provide copies of the original documents. Do we have any rights to copies of such information, and if so, how should we proceed with obtaining it.  We are being told that they can provide the information verbally, but are refusing to mail or fax the documents.  Ultimately we hope to negotiate a lump sum settlement, but do not want to do this without having all documentation in writing.

Thank you,

Leslie

Answer
Leslie,

You have a right to request verification of this debt if the account was in collections. From our research on GMAC Auto contracts since the original creditor is servicing the loan, you acknowledged the debt when the payments were being made.  

Good Luck on your settlement pursuit