Consumer Portfolio Services madness

[newstart2010]

We voluntarily surrendered our vehicle to CPS with a letter that we were asking them to retreive the car "In full satisfaction of the loan".  They came and got it.  Sold it.  The amount would have wiped out the debt. 

Yet they did not apply the amount of the sale to the amount of the debt, they posted on our credit reports that it was an involuntary repossesion, and they tacked on about 5k in fees.  More than the original amount owed.  

Now they are showing a complete charge off, but still showing a balance.  we have a collection agency calling my husband's office and my cell phone, and we have sent clear instructionf for them not to contact us by phone. Also, when we have talked to these people on the phone they have threatened jail time, removal of our children from the home, and much much much worse.

I can work with my lawyer to get them to stop all of this, but what do you think?  Should I start making a case to sue them?

[Anonymous]

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newstart2010 wrote:

We voluntarily surrendered our vehicle to CPS with a letter that we were asking them to retreive the car "In full satisfaction of the loan".  They came and got it.  Sold it.  The amount would have wiped out the debt. 

Yet they did not apply the amount of the sale to the amount of the debt, they posted on our credit reports that it was an involuntary repossesion, and they tacked on about 5k in fees.  More than the original amount owed.  

Now they are showing a complete charge off, but still showing a balance.  we have a collection agency calling my husband's office and my cell phone, and we have sent clear instructionf for them not to contact us by phone. Also, when we have talked to these people on the phone they have threatened jail time, removal of our children from the home, and much much much worse.

I can work with my lawyer to get them to stop all of this, but what do you think?  Should I start making a case to sue them?

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Without even a shred of hesitation, I'd say sue them. Not only is the behavior of the CA outrageous, but it's illegal. I'd take aggressive action against them. And, if I'm understanding the circumstances of the reposession, it sounds like you may not even owe this debt. This is where you tell your lawyer to "Sic'em!"

[guiness56]

I agree with LilMirth.  And to add to that, it is also illegal for CPS not to apply what they got from the sale of the vehicle to the balance. 

They should have sent a letter before and after selling it.  The second one should have shown how much it was sold for and what you still owed after the sale.

Keep in mind that they are allowed to charge extra fees but they must disclose them.

Not only would I get an attorney, I would file complaints with the AG, BBB and the FTC.

[newstart2010]

thanks!!!  my lawyer today officially attacked cps and santander.  we'll see how it goes.