Trouble with American Honda Finance

[cstar33]

Okay, so I originally had a car loan through American Honda Finance. Well, in 2004 my car was repossesed leaving me a balance of $3,300.00. I have been paying a law firm called "Law Offices of Mitchell N. Kay, P.C." and my balance is down to $770.

Well, I went to buy a car yesterday, and all of a sudden this month there is a negative report on my credit report saying American Honda Finance Wrote Off the $770. I have called Honda and they have told me to call National Recovery Center.

Does anyone have any help out there for me??? Please. This is the only thing holding me back from getting a car and it dropped my score 66 points. Besides this my payments are perfect.


Please help!

Thank you!!!

[Trish]

Why National Recovery Center? Are they the CA that Mitchell Kay is collecting for? (btw, Mitchell Kay is an A-hole scammer) Did they receive a judgment on you?

[cstar33]

Well, on my credit report is states American Honda just wrote this off in April? But I have been paying Mitchell Kay who apparently is paying Honda ( I called Honda and they show my payments through Mitchel Kay up until February). The lady @ Honda advised I call Honda National Recovery Center for more information. She says she shows they charged off $180 on March 31st.

I guess there is a little more to the story too but this is all confusing to me. I have been paying Mitchell Kay $100 a month paying off this debt. Well, in February they charged my remaining balance of $974 without my authorization. Since the money was between my bank and their bank, they told me to have my bank back it out. So my bank NSF'd the payment and for the inconvenience he said to just pay $200 in March, covering Feb and March. Honda is not showing anything past the $974 issue.

Also, I disputed the amount with Transunion as it was reporting for the Full $3300.

I hope I didn't confuse you more. I just need to get this cleared up so I can get a car! Thanks again for your help!

[Trish]

Whoa! So Mitchell Kay tried to take the remaining balance out of your bank account!?! wtf?

Yes, you need to talk to Honda's collection dept.....let them know you are STILL paying Mitchell Kay. Explain the situation about the unauthorized charges.
Something doesn't sound right here.

It sounds like Mitchell Kay was quick to jump and tell them you stopped paying since you pulled the funds back........so then Honda went and charged off the remaining balance. That is WRONG.

[jjgross]

Originally Posted by cstar33

Well, on my credit report is states American Honda just wrote this off in April? But I have been paying Mitchell Kay who apparently is paying Honda ( I called Honda and they show my payments through Mitchel Kay up until February). The lady @ Honda advised I call Honda National Recovery Center for more information. She says she shows they charged off $180 on March 31st.

I guess there is a little more to the story too but this is all confusing to me. I have been paying Mitchell Kay $100 a month paying off this debt. Well, in February they charged my remaining balance of $974 without my authorization. Since the money was between my bank and their bank, they told me to have my bank back it out. So my bank NSF'd the payment and for the inconvenience he said to just pay $200 in March, covering Feb and March. Honda is not showing anything past the $974 issue.

Also, I disputed the amount with Transunion as it was reporting for the Full $3300.

I hope I didn't confuse you more. I just need to get this cleared up so I can get a car! Thanks again for your help!

Now here's were you should set up a separate bank account so they don't take everything out of your account and leave you high and dry.Who's reporting it with different amounts and to who?

[CreditCrisis]

if the county states i owe money to them (which is a huge mess) can they garnish my wages or seize monies i will be recieving from a judgment in my favor?

[Trish]

Originally Posted by CreditCrisis

if the county states i owe money to them (which is a huge mess) can they garnish my wages or seize monies i will be recieving from a judgment in my favor?

Not sure about that.....you would have to check and see if your state allows wage garnishment. It should say in the SOL by states thread for Cali.

[cstar33]

okay, so basically when the whole NSF thing happened and they said to just pay february and march together in march, it made it so it went 30 days without a payment and bumped me back into Honda. main problem is it was a chargeoff in dec 2004 and now it says april 2009 so it looks recent!

[Trish]

Originally Posted by cstar33

okay, so basically when the whole NSF thing happened and they said to just pay february and march together in march, it made it so it went 30 days without a payment and bumped me back into Honda. main problem is it was a chargeoff in dec 2004 and now it says april 2009 so it looks recent!

I don't know if Honda can change anything now (as far as the charge off) but you should still call and talk to them and see what they say.........and I'm not so sure I would pay Mitchell Kay anymore since they are the ones that jacked the whole thing up. I would be pissed too.

[Trish]

And what was their reasoning for trying to pull out the FULL balance instead of your arrangements? Grrrrrrr.....

You know, I'd be half tempted to seek legal counsel or at least get advice regarding this. The whole thing is just messed up and wrong.