Our client defaulted on payments on a brand new leased Acura when he lost his job. The car was quickly repossessed and the deficiency balance was sent to a collection agency who in turn pursued our client for the balance. Our client received collection letter from Global Credit Collection, a collection company, collecting on the deficiency balance of the finance agreement of the vehicle repossession of our client's car. The finance company and owner of the debt was American Honda Finance Corporation, whom finances Honda and Acura vehicles that are leased and financed.
The deficiency balance remaining after the repossession and subsequent sale at auction of the vehicle was a whopping $34,477.31, and Global Credit Collection was aggressively pursuing our client. To prevent Honda from pursuing litigation which would cause both clients to accrue more fees and waste more time, we stepped in, and were able to achieve an out of court settlement of $12,066.88 to be paid over a three year period interest free. This turned out to be a total reduction of 65% off of the full balance due.