Consumer complaint received 2023-11-26
Company: Recovery Ace Inc
State: CO
Product: Debt collection
Sub-product: Auto debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
I obtained a loan through XXXX XXXX XXXX to buy a XXXX XXXX XXXX. The credit union failed to obtain the Certificate of Title and the Power of Attorney expired after one year. ( XX/XX/XXXX ) I was making payments for 8 months to XXXX for a car they did not own. After a lawsuit was filed by me to get XXXX to obtain the Title, they filed a 3rd party lawsuit against XXXX XXXX who held title from the Seller of the car. 
The lawsuit by me was dropped as a promise from the credit union was made stating they had the title, and the loan could resume. I still could not obtain plates and the DMV would not grant anymore extensions. XXXX XXXX XXXX did not obtain the Title like they stated so an Agreement for me to surrender the car and the debt be erased from the tradeline and any retribution of my loan was written up by XXXX XXXX XXXX 's XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Two years later, XX/XX/XXXX I received a letter from Recovery Ace- Debt Collector stating I owe {$16000.00} and that the car was sold for {$2100.00}. 

I wrote a letter in response to letter I received from Recovery Ace dated XX/XX/XXXX. 

An agreement was made by me and XXXX XXXX XXXX & their Lawyer, XXXX XXXX ; XXXX, XXXX & XXXX, XXXX to surrender the XXXX XXXX XXXX and the debt erased with no retribution to the loan amount. This agreement was made due to the fact XXXX XXXX XXXX was in breach of the contract. 

The Power of Attorney for Motor Vehicle Only expired one year to the date of the purchase. XXXX failed to : Apply for and Receive a New Registration or Temporary Registration Apply for and Receive Certificate of Title Apply for and Receive Duplicate Certificate of Title To Transfer ownership and acknowledge odometer reading I was unable to acquire License Plates for the entire term I had possession of the XXXX XXXX XXXX. 

I was stopped numerous times by County Sheriffs. I was working out-of-town in XXXX and later in XXXX XXXX and was XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX XXXX and XXXX XXXX for expired plates .

The DMV was gracious enough to extend my temporary plates 5 times. Each time I was stopped by police I had to produce a letter ( s ) from XXXX XXXX XXXX to the Motor Vehicle Dept requesting 60-day extensions. Letters dated XX/XX/XXXX, XX/XX/XXXX & XX/XX/XXXX. ( provided upon request ) Registrations : 1. Expired XX/XX/XXXX XXXX. Expired XX/XX/XXXX XXXX. Expired XX/XX/XXXX ( XXXX extension only ) 4. Expired XX/XX/XXXX I filed a lawsuit against XXXX XXXX XXXX for failure to fulfill the Contract in obtaining Registration and Certificate of Title. This lawsuit was later dropped due to an agreement between me and XXXX XXXX XXXX. 

XXXX filed a 3rd party lawsuit against XXXXXXXX XXXX  and previous owner of the Car ( XXXX XXXX XXXX XXXX The lawsuit claimed XXXX XXXX and XXXX failed to deliver possession of the certificate of title to the Credit Union . This is/was a dispute between XXXX and XXXX. This lawsuit was dropped by XXXX XXXX XXXX. My contract was with XXXX. XXXX failed to uphold their end of the contract. 

As of XX/XX/XXXX, ( 14 months after the expired Power of Attorney ) XXXX XXXX XXXX had still not received Certificate of Title for the vehicle. At this time, XXXX XXXX XXXX and I reached an agreement for me to surrender the car in lieu of erasing said debt and delete the tradeline associated with the auto loan, in addition it was agreed that XXXX XXXX XXXX would not report the subject tradeline to the Credit Reporting Agencies. I was coerced by XXXX XXXX XXXX Attorney to sign the Statement of Voluntary Surrender of Collateral with their wording, stating I was not able to make the payments. I stopped making payments because XXXX XXXX XXXX breached the contract and were unable to obtain the Certificate of Title from XXXX I was making payments to XXXX and they did not own the vehicle. 

Our agreement also stated that XXXX XXXX XXXX request the credit reporting agencies delete the subject tradeline. I was never provided proof the XXXX XXXX actually pursued this part of the agreement. 

XXXX XXXX is in breach of our agreement as well. 

In addition, your letter states the car was sold for {$2100.00}. I have maintenance/repairs for the XXXX XXXX. I have paid the following : Replace Camshaft Adjuster Solenoid {$120.00} ACT 6 Puck Clutch {$1100.00} Master Slave Cylinder {$320.00} Clutch Kit and Fly Wheel {$1100.00} Fork & Pin and Transmission Shaft and Steel Sleeve and XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$120.00} Alignment & Brake Service {$70.00} XXXX XXXX XXXX XXXX {$460.00} Total Amount for Repairs : {$3400.00} ( receipts to be provide upon request ) The XXXX XXXX XXXX had the following upgrades : The Motor was a XXXX XXXX XXXX XXXX  worth {$5600.00} before installation. ( Paperwork can be provided upon request ) Upgraded Air-Intake ( XXXX XXXX can be provided upon request ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Grimm Speed Approximately {$1200.00} before Installation AOS ( Air-Oil Separator ) {$400.00} Upgraded Fuel Injectors XXXX cc {$500.00} Upgraded Pully Wheel for Motor {$280.00} Upgraded to STI Turbo {$1900.00} Fully Adjustable XXXX Coil-Over Suspension ~ {$1300.00} Stage XXXX ACT Clutch Kit {$650.00} After Market XXXX ( Blow-Off Valve ) {$210.00} TGV ( Tumble Generator Valve ) Deletes- changes air flow ratio {$110.00}. 
Transmission was fully built to handle added power from all the modifications done to the motor Upgraded Up & Down XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Titanium {$1100.00} Custom Tunes for ECU {$490.00} In addition, the XXXX had the following cosmetic upgrades : After-Market Wheels & Tires XXXX Wheels Front Lip for XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and Shift Knob XXXX ( Access Port XXXX for XXXX Readings for Custom Tune Upgraded LED Lights The agreement I had with XXXX XXXX XXXX when the car was surrendered XXXX XXXX XXXX sell the vehicle in any commercially reasonable manner. Selling this car for {$2100.00} is not reasonable. This car could have been sold for {$10000.00} + even with a blown motor. ( Which this car did not have a blown motor only a dead battery ). 

The FTC stops unfair, deceptive and fraudulent bad business practices from companies that break the law. XXXX XXXX XXXX is participating in fraudulent bad business practice by trying to collect a debt from me that I do not owe. 

I will file a Consumer Financial Protection Bureau complaint against XXXX XXXX XXXX for unfair bad business. XXXX XXXX XXXX is deliberately seeking retribution against me for filing a lawsuit. 

After the lawsuit was dropped, XXXX XXXX XXXX claimed they had possession of the title and we could resume the loan, but they would not credit me the interest I had already paid along with the principal amount. In addition, they lied about having the title as I still could not obtain license plates. It wasnt until XX/XX/XXXX we agreed on the Surrender of the Vehicle and they would keep the payments I had already made. XXXX was collecting payments to a car they did not own. How is that even legal? 

XXXX XXXX XXXX has spent more money on Attorney Fees and now Recovery Ace than the amount they are seeking to obtain from me. I am happy to appear in court, if it comes to that as I know I have all the necessary paperwork to prove XXXX XXXX XXXX is in the wrong and this is nothing more than an act of retaliation. 


I appreciate your time and consideration for looking into this matter.

Company response to consumer: Closed with explanation