Need Help - HSBC/NCEP LLC

[tennmom]

My Husband and I bought a motorcycle on an HSBC/Good Times card in early 2009. I paid the bare minimum on it for almost two years. He got out of the military and we couldn't afford anything! We got behind and it went to collections. I thought that since it was a secured debt that it would not get sent out but apparently it did. I ended up negotiating a return for paid in full (nothing written- I was nieve) and they came and took the bike(to which I have no proof). About 6 months later I got a call asking for me to pay over $8000 because the bike only sold for $5000. I was in shock because I thought it was taken care of. No way i could pay it so I ignored it. That was over a year ago.

Now on my credit reports it shows

HSBC - Bad Debt/Collections $13021- Charged off/Written off 10/2011

and also a collections from

NCEP LLC - Collections/Debt Buyer $8951- Largest Balance - $8328 in May 2013! - Account Added 12/2012

Both accounts list last activity 04/2011 on Equifax

I never recieved notice written or otherwise that the account had been transferred or anything. No repossesion listed anywhere.

I am so confused about the varied amounts and who took the bike and got the $5000 for it. I feel like we made such a terrible mistake and will have to pay like $18,000 for the bike plus the two years we paid on it! We would have kept it and made whatever payments to keep the bike.

So my questions are

Why are there two balances? Was it sold, do I pay the collector or hsbc? DV pointless? How do I get the amount corrected? And where do I begin with negiotiations because I already gave them $5000 (the value of the motorcycle) I was going to call HSBC but figured I would get som eadvice here first.

My husband just wants me to call Lex Law but I am worried that paying that much every month wont help us out at all! And there is nothing they can do anyway. We are seriously considering bankruptcy because of this!

Thanks in advance for any help on this matter and for all the other help I have been able to get from here!

[guiness56]

Is the amount HSBC is reporting the total amount of the original debt?

It looks like the CA is reporting $5000 less than that.

Either way, the OC has to deduct the selling price of the bike and not show the entire balance.

Look up the laws in your state about repossessions.  They vary from state to state about what they have to do. 

I would not contact Lexington, they legally cannot do any more than you can. 

[tennmom]

Thank you for your response!

I looked up the laws and it seems that they may have not followed as close as they should have. But now I really have no idea what to do. I really feel like I need a lawyer. It was repossesed in TX but I now live in TN. (as far as I can tell the laws are identical) I do not have any proof that they took the bike so how do I go about getting HSBC to reflect the correct amount? Also, I can't be sure but the CA that has the account now is not the one that took the bike? I really feel like something went terribly wrong on both ends but have no idea how to go about fixing it. I really want this to be taken care of. It doesnt seem possible to start rebuilding until this is settled. Is anyone able to break it down barney style for me?

I was just going to dispute it all and see what happened but Im not sure thats the best route. My score isn't horrible 621 but I would like to keep it up.

[guiness56]

Send the OC this:

This is a Notice of Direct Dispute with you, under the provisions of FCRA §623(a)(8)(D), of the accuracy of information you have reported to my credit file.

In compliance with FCRA §623(a)(8)(D), and enacting regulations published at  16 CFR § 660.4, this Notice of Direct dispute includes:

Identification of the specific information being disputed:

           (specify the account number, and the specific information that is disputed under

             that identifying account)

Basis for the dispute:

            (how the reporting was inaccurate;    was any reporting in violation of any statutory or

             regulatory provisions?  account or express agreements?  CRA reporting gudelines? Account not

              yours? etc.)

Supporting documentation:

            (all documents that support your dispute; it is recommened to also include,

             as part of your documentation, at least a copy of the portion only of your

             recent credit report showing their reporting of the disputed information was

              actually reported to your credit flle.  The implementing rule suggests a  showing

               that it appeared in your credit report)

A collection agency cannot repossess anything.  That would have to be done by the OC.

Send the CA the same letter with an added sentence below the first one:

    This is a direct dispute of credit reporting. This is not a request for debt validation/verification  under FDCPA §809(b)
            

[tennmom]

I decided to call HSBC-(now capital one) and they told me that the account was sold in OCT 2011. They havent reported on it since. The collection agency - United Debt Holdings- did repo the bike and i think they broke some state laws doing so. (never once notified me of the auction date and place). Cap1 told me that United debt holdings bought the account so they are the ones that took the bike and lied to me. They have since sold it NCEP LLC (Dec 2012) This NCEP never notified me.

If I wanted to take care of this how do I do it? I am not going to pay anything in the realm of the $9000 (just because I didnt get it in writing doesnt mean that UDH didnt agree to return for paid in full) they are reporting. Will they settle for signifigantly less? If I send this dispute letter and they somehow take thier reporting off what does that do to the original account? I want to buy a house!

I have no proof of anything to send with that letter. I am not even sure what my reasoning would be. I I just want everything reported correctly and I am having a hard time understanding my rights as far as this situation is concerned. Thanks for any advice.