I received a $600 loan from All Credit Lenders back in 12/2008. I initially denied getting the loan because it just didn't seem right, but they kept calling me enticing me to get the loan so against my better judgement I got it.
Before I signed the papers, because I didn't understand the language on the paperwork, I simply asked them if I paid the loan off in February 2009, how much interest would I have to pay? The lady told me it would estimate to a little over $100. Let me add that I was also paying monthly on the loan.
In February 2009, I called to get the pay off amount and the pay off amount was 3x more than what I was originally told. I was off and refused to pay the amount they requested. I told them I would have no problem paying the amount that was originally agreed to and they wouldn't accept it, so I dropped the subject. I was then told that the payments that I had made on the loan were INTERST ONLY payments; none of the payments went to the principle amount owed.
Now, I received a certified letter in the mail from All Credit Lenders, which was signed by my 12 year old son because I wasn't home. The letter is referencing WIS.STAT.425.104 and stating that my past due amount is over $2000 (I remind you I only borrowed $600), that includes a daily interest of $7. Also, the letter states that if I do not pay the total amount past due plus interest by the end of this month, they have the right to commence action for my entire outstanding balance and/or repossession of my motor vehicle securing the note without further notice.
Now, my issue with this is my motor vehicle is currently being financed through another company and has absolutely nothing to do with them. I know that they can take me to court, but can they repossess my vehicle as well? This just doesn't sound right to me at all. How do you suggest I move forward?