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Ford Motor Credit Co. Charge Off/ Repo

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Ford Motor Credit Co. Charge Off/ Repo

Postby oded48 » Sat Dec 03, 2016 12:53 pm

I will try to make a long story brief. FMCC and I had a long dispute over a payment in 2004 that they first claimed was received and applied, then said payment was returned(it never was). This dispute went as high as the MN Attorney Generals office without resolve. I made every single payment for 2 years without fail. Furthermore, as there was still a dispute, I wrote very clearly on each check that cashing of this check constitutes an agreement that all payments are current up to and including current month. In June of 06, I received my check back with a note correctly stating that I had not signed the check. It was a simple mistake. I then sent them a check for two payments(June and July). I received a letter dated July 14th 2006 stating again that my check was being returned because it was blank. I know it was not, and the letter / envelope contained no check. I called the number on the letter and was told that they received the check and everything was fine. I then sent them my August payment(again with the restrictive endorsement). They cashed my August payment, but still had not cashed my June / July payments. Next thing I know, there is a repossession team taking my truck. They cashed a full payment($450) with an endorsement stating all payments were now current, and then charged off the vehicle exactly one week later. How can they cash a payment and charge off a week later, especially after 2 years of making each and every payment? I feel they intentionally failed to cash June / July payments and repossessed out of retaliation for reporting them to the MN Attorney Generals Office. Can a creditor cash a payment then charge off the account one week later?

ANSWER: Hi Matthew.

If I'm reading your question correctly, your main point is whether or not you have a case based on the "limited endorsement" put on that last payment, correct? Creditors have been addressing limited endorsements(LE's) for as long as they've offered credit. If you check your contract, somewhere it will say they are not bound by any endorsement put on your payment...that they'll accept your money, but not your accounting of the balance. Believe it or not, that's for your protection as much as it is theirs. Say, for example, you sent your payment with an LE that was off by $1...if they refused to cash it you may be subject to late fees and interest, and even delinquency on your credit. Conversely, let's say an unscrupulous consumer bought a brand new car and on his first payment wrote "paid in full" in very small print or in a foreign language on his check. Would Ford be bound by that if they cashed the check? You see how complicated the subject gets? Creditors ignoring limited endorsements is the right decision. No payment or letter or phone call can rewrite the contract or change the liability unless both parties sign something. That's the way it should be, too, in order for all parties to be properly protected.

I hope that answers your question. Please let me know.

Warm regards and best wishes for a great 2010 - Mike

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

That wasn't really my question. The question is can a creditor charge off a debt one week after cashing a full payment? To charge off an account, do they not have to believe they can no longer collect on the debt? They had been collecting for 2 years. Although they did not cash a check that contained two payments, they did in fact cash a $450 payment August 18th and charged off the account August 25th. My question is whether or not they can do that?

Additionally, regarding the endorsement, on the same form they sent for the check they stated was blank, one of the reasons listed(but not checked) for returning a check was "The check contained a restrictive endorsement that we can not accept". As their company policy is to return checks that contain endorsements they do not accept, it would seem that they accepted the endorsement. However, that is certainly secondary, my real question is whether they can charge off an account one week after accepting payment, they were actively collecting on the account.
oded48
 
Posts: 40
Joined: Wed Dec 11, 2013 4:02 am

Ford Motor Credit Co. Charge Off/ Repo

Postby Addae » Sun Dec 04, 2016 6:16 am

I will try to make a long story brief. FMCC and I had a long dispute over a payment in 2004 that they first claimed was received and applied, then said payment was returned(it never was). This dispute went as high as the MN Attorney Generals office without resolve. I made every single payment for 2 years without fail. Furthermore, as there was still a dispute, I wrote very clearly on each check that cashing of this check constitutes an agreement that all payments are current up to and including current month. In June of 06, I received my check back with a note correctly stating that I had not signed the check. It was a simple mistake. I then sent them a check for two payments(June and July). I received a letter dated July 14th 2006 stating again that my check was being returned because it was blank. I know it was not, and the letter / envelope contained no check. I called the number on the letter and was told that they received the check and everything was fine. I then sent them my August payment(again with the restrictive endorsement). They cashed my August payment, but still had not cashed my June / July payments. Next thing I know, there is a repossession team taking my truck. They cashed a full payment($450) with an endorsement stating all payments were now current, and then charged off the vehicle exactly one week later. How can they cash a payment and charge off a week later, especially after 2 years of making each and every payment? I feel they intentionally failed to cash June / July payments and repossessed out of retaliation for reporting them to the MN Attorney Generals Office. Can a creditor cash a payment then charge off the account one week later?

ANSWER: Hi Matthew.

If I'm reading your question correctly, your main point is whether or not you have a case based on the "limited endorsement" put on that last payment, correct? Creditors have been addressing limited endorsements(LE's) for as long as they've offered credit. If you check your contract, somewhere it will say they are not bound by any endorsement put on your payment...that they'll accept your money, but not your accounting of the balance. Believe it or not, that's for your protection as much as it is theirs. Say, for example, you sent your payment with an LE that was off by $1...if they refused to cash it you may be subject to late fees and interest, and even delinquency on your credit. Conversely, let's say an unscrupulous consumer bought a brand new car and on his first payment wrote "paid in full" in very small print or in a foreign language on his check. Would Ford be bound by that if they cashed the check? You see how complicated the subject gets? Creditors ignoring limited endorsements is the right decision. No payment or letter or phone call can rewrite the contract or change the liability unless both parties sign something. That's the way it should be, too, in order for all parties to be properly protected.

I hope that answers your question. Please let me know.

Warm regards and best wishes for a great 2010 - Mike

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

That wasn't really my question. The question is can a creditor charge off a debt one week after cashing a full payment? To charge off an account, do they not have to believe they can no longer collect on the debt? They had been collecting for 2 years. Although they did not cash a check that contained two payments, they did in fact cash a $450 payment August 18th and charged off the account August 25th. My question is whether or not they can do that?

Additionally, regarding the endorsement, on the same form they sent for the check they stated was blank, one of the reasons listed(but not checked) for returning a check was "The check contained a restrictive endorsement that we can not accept". As their company policy is to return checks that contain endorsements they do not accept, it would seem that they accepted the endorsement. However, that is certainly secondary, my real question is whether they can charge off an account one week after accepting payment, they were actively collecting on the account.
Addae
 
Posts: 50
Joined: Sat Feb 15, 2014 7:00 am

Ford Motor Credit Co. Charge Off/ Repo

Postby Eorlson » Mon Dec 05, 2016 4:24 am

Yes, contractually they can come get your car if you're a dollar short or a day late. They can theoretically come reposes the car even if you're current - it's their car. Thing is, that's simply never done for obvious reasons. They make more money by allowing you to continue to pay than they do by getting the car.

The under-laying factor is where are they most likely to make the most money. That said, however, a lot of things factor into the decision to reposes a vehicle: * They are looking at your credit score - if you're starting to go south on other accounts, it's a good bet you'll eventually go south on your car. * They are looking at internal models that predict payment problems - credit score, credit activity, types of credit, available limits, your area demographics, your income, your job, your assets, your payment history, etc all factor into these models. * Your recent payment history - in your case, you claim the payment was made, they claim it wasn't...but their system is aging your account every day, and red flags are being waived at Ford. Each day the issue went unresolved on their end, the more reason they had to be concerned.

* Your behavior - as much as you'd think it wouldn't matter in our modern, paperless, computer-driven society, a consumer's attitude can still drive decisions made about them. Filing a complaint with a regulatory agency won't do any harm at all, despite what you might think. Rude, abusive, aggressive or otherwise uncooperative behavior, however, will always trigger a negative reaction at a creditor. Not saying YOU did, but I am saying this effects a creditors decision making in general. I know Ford. I worked their account for many years. I know them to be consistent and fair. I'm sure there is more to this. Have you called them and discussed it with them? Did you ask why they made the decision to repo the truck? If you got generic answers, ask to speak with someone at a higher level and see if you can sort it out. I understand you're upset with their decisions, but I'm telling you they are not a bad company and should answer your questions for you. Please let me know what happens.

Mike

****Matthew, your ratings for my answers are off the mark. I gave you an hour of my time for free, with detailed, thought-out responses. Now you've just tanked my overall scores. I don't know if you didn't like hearing the truth, or you are just lazy or spiteful or what...but it isn't appreciated. Remember, bud, I volunteer my time. I'm not reimbursed in any way. All I have is my ratings to be proud of, and now you've torched them. Thanks, hope you feel great about it. Watch out for Karma...******
Eorlson
 
Posts: 33
Joined: Fri Mar 14, 2014 5:04 am


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