A phone call this week remind me of a debt collector that specializes in unpaid auto loans: Autovest, LLC. Autovest, LLC is similar to debt collectors that specialize in credit cards or student loans. Its function is to buy old debt for pennies on the dollar and to sue people to collect the unpaid debt.
Typically, a case with Autovest, LLC starts with a car loan. Since most of us don’t have money to pay cash for a car, we finance it through a bank. The auto loan is created through a document called the Retail Installment Sales Contract. It will have a monthly payment obligation for a period of time it takes to pay the full amount of the vehicle price. If you fail to make your monthly payments, the bank repossess the vehicle and usually sells it at an auction. Sometimes, the bank simply declares the debt as uncollectible and sells it to other companies to cut its losses. That’s where Autovest, LLC steps in. When a bank sells off a car loan, say for $15,000.00, Autovest, LLC buys it for a fraction of the cost, maybe $0.01/$1.00. Through the debt assignment, Autovest, LLC tries to gain the right to pursue the full $15,000.00 debt. That is a heck of a profit margin if Autovest, LLC is successful in collecting.
The frustrating situation is when Autovest, LLC pursues a debt and the individual who took out the car loan makes a deal to pay Autovest, LLC without putting up a fight. More often than not, if forced to pursue the debt through a Court System, Autovest, LLC cannot win. That’s because the assignments from the original bank might be improper. Therefore, when contacted early on, I can usually defeat Autovest, LLC for a fraction of the cost.