Summary: Is GMAC Financing suing you for a debt? SoloSuit can help you take a stand and win in court.
Purchasing and ultimately owning an automobile is considered to be part of the American dream. However, this dream can turn to a nightmare very quickly if you encounter a sudden job loss, suffer a bodily injury that forces you to retire or take a significant amount of time off work, or confront another emergency that drains your financial resources.
If you purchased a car manufactured by General Motors (GM), you may be required to deal with GM Auto Loan Financing (GMAC) and potentially a debt collection agency retained by GMAC to try and collect on a delinquent auto loan.
Generally, GMAC is known to accept a late payment, but if multiple payments are missed, GMAC will not hesitate to proceed with repossession and debt collection.
GMAC Financial has received many complaints
If you're feeling frustrated by GMAC Financial, you're not alone. As of 2022, GMAC received 773 complaints on its Better Business Bureau profile in the past three years. These complaints mention the following actions by GMAC:
Reporting inaccurate information to the credit bureaus.
Charging excess interest.
Violating contractual terms.
Reaching a settlement, then changing the terms of the agreement to get more money.
Failing to validate a debt.
Withholding important documentation when requested by consumers.
Let's take a look at a real example from the BBB complaints.
“There was a settlement agreement made in 02/22. The agreement was supposed to be for $6700 being paid over six months. I made the first payment in February. The second payment was made in 03/22 by the insurance company. Now the company wants to forfeit our agreement. They are now asking for another $6700 and they don't do third party agreement. They took the third party money and refuse to give a refund. They also gave me an unwarranted credit review saying no payment was made. I would for them to honor our agreement and correct my credit report.”
Here's how to deal with GMAC debt collectors
Getting harassed by a GMAC debt collector can be extremely stressful and gut-wrenching. Debt collectors can be overly aggressive, rude, and make empty threats with the goal of getting you to agree to pay the debt purportedly owed. If you are being subjected to this type of harassment, don't give up hope. You have legal options and tools available that can show you how to beat GMAC Financing in court.
Request a copy of the deficiency notice from GMAC
A deficiency notice document should tell you the amount that you currently owe. If you haven't received it, call GMAC and request them to send it via fax or mail. Do not accept as fact any verbal amounts given to you over the phone without written confirmation.
Compare the deficiency total to your loan documents to ensure the amount sounds reasonable. It should be lower than the loan balance of the car and not higher. Remember, deficiency is what's left over after the lender has sold the car and partially recouped some of its costs.
Consider negotiating a debt settlement
Along with learning how to beat GMAC Financing in court, you should consider possibly negotiating with GMAC to try and resolve the case via settlement. If you pursue this option, there are certain strategies and steps you can take to put yourself in the strongest position possible during negotiations.
First, figure out the highest payoff amount that you can reasonably afford based upon the balance owed on the auto loan. Consider offering around 50%of the balance owed. Why? Because it reflects a good faith effort on your part to honor the amount borrowed on the loan. Next, contact the phone number listed on the deficiency document sent by GMAC and ask whether the company would consider a settlement. If they ultimately agree to a settlement, make sure to get every detail in writing. If a lawsuit has been filed, you can still reach a settlement. Start the negotiation process by sending a Debt Lawsuit Settlement Letter.
Watch this video to learn more about negotiating a debt settlement:
Request a debt validation from GMAC
If settlement negotiations do not work out and you are forced to proceed with going to court to defend yourself against a lawsuit filed by GMAC or a debt collector hired by GMAC, make sure to formally request that GMAC provide all documents concerning the purported debt.
You can formally request a debt validation by sending a Debt Validation Letter. After receiving a request to validate a debt, GMAC debt collectors must prove the following with proper documentation:
The amount of the debt.
The name of the creditor.
The collector will assume the debt is valid unless the consumer sends them a Debt Validation Letter within 30 days.
If you send the collector a Debt Validation Letter they will need to mail you validation of the debt.
If you send them a Debt Validation Letter they will need to mail you the name and address of the original creditor.
Check out this video to learn more about how to draft and send a Debt Validation Letter:
Know your rights when debt collectors contact you
Debt collectors, including those hired by GMAC Financing, are known for attempting aggressive tactics against people who are unaware of their legal rights under the Fair Debt Collection Practices Act. The FDCPA states guidelines and rules that dictate how debt collectors can act. Some of the restrictions on companies such as GMAC Financing include:
Debt collectors can never contact you when you are working.
Debt collectors cannot use rude or vulgar language when talking to you on the phone or in emails or texts.
Debt collectors are not allowed to threaten lawsuits.
Debt collectors cannot contact you before eight in the morning or after nine at night.
Defend yourself if GMAC Financing sues you for debt
If GMAC Financing Strategies decides to file a debt collection lawsuit against you, it is recommended you be bold and aggressive in your response and to ensure your response is timely filed. Why? Because members of the GMAC Financing generally expect consumers to ignore the lawsuit and throw it in the garbage. This is understandable, but it only means that the debt collector wins without a fight. Don't make this mistake because there are options on the table to beat debt collectors like a drum, if you know what to do.
Never concede that you owe the debt! Remember that GMAC Financing must prove under the law that you owe the debt. Don't give them any help. Make them do all the work.
File your Answer with the local Clerk of Court on a timely basis. Most debt collection cases require a response within 20 or 30 days of getting the complaint.
Make your Answer copy to GMAC Financing and make sure it's stamped by the Clerk of Court.
Some Effective Affirmative Defenses To Try In Your Answer
When you respond to GMAC Financing's lawsuit, you have the chance to torpedo their legal arguments if you have the knowledge of debt collection tactics and laws. Also, remember that the company must prove that you are the person who owes the debt and owe the alleged amount. This means GMAC Financing must prove the following:
GMAC Financing has the right under the law to sue you.
You are the person who owes the debt.
You owe the money listed by GMAC Financing in the complaint filed in court.
Depending on the facts of your case, you might argue that GMAC Financing did not file the suit within the required statute of limitations. The statute of limitations states that a lawsuit must be filed within a given timeframe.
If the case facts show that GMAC Financing sued you for debts where the statute of limitations lapsed, you may file a motion to have the suit dismissed with prejudice.
Also, think about filing a countersuit against GMAC Financing, if you have evidence that proves GMAC Financing violated the FDCPA when they contacted you to repay a debt. If you possess proof that GMAC Financing violated this law, you may receive compensatory damages. They may have to pay your attorney fees, too.
Overview of Actions To Take If You Are Sued By GMAC Financing
Here's a quick recap of actions to take if GMAC Financing sues you:
Write down any telephone call details if they call you before 8 am or after 9 pm. Also, write down if they contact you at work and/or use abusive and threatening language.
Be certain to file your Answer within the required timeframe, or you will lose the case by default.
In the Answer, think about raising at least one affirmative defense, such as the statute of limitations. Also insist that GMAC Financing provide proof of the amount you owe and that you are the one who owes the debt.
What is SoloSuit?
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
Respond with SoloSuit
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
It only takes 15 minutes. And 50% of our customers' cases have been dismissed in the past.
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