scooterk328
02-05-2009, 11:30 AM
Interesting situation...in 2001 we leased a piece of equipment. We financed it through Citibank Delaware. As of 1/08, we had 2 payments remaining on the loan. During 2008, we had a rough patch and money was tight. I spoke with our rep at Citibank, explained the situation, and came to an agreement allowing us to make the final 2 payments when possible.
In November, 2008, the day before thanksgiving, we received a summons stating that we had defaulted on the loan. Reason for the summons was due to the fact that when the Financial Bailout by the US Government was made, GE Capital bought out Citibank Delaware. GE Capital showed no signs of us ever making a payment to Citibank Delaware, so they were looking for the full balance of the original loan. We were given 5 business days to show that we had made payments accordingly or else they would take the equipment. That meant I had to spend my Thanksgiving weekend at work looking for check stubs from 2001.
I sent all the necessary paperwork to the attorney's representing GE Capital, at which time they agreed that we had 2 payments remaining on the loan. Only now, they want us to pay for the attorney's fees of $1600.00, which basically triples our loan payment.
After going back and forth with the attorney's, we agreed to make the final 2 payments in January/February of 2009. When payment time came around, I had no address to send the payment, so I called the attorney and requested the address. It took him 2 weeks to respond, and when he did I was told that they expected the lawyers fees to be included or they would not accept payment. I tried contacting someone at GE Capital to try and work this out, but had zero luck.
Since I was told the payment might be rejected, and the fact that I can't afford at the moment to have a payment of that size outstanding when it could be spent elsewhere, I sat on it. I have tried getting in contact with the attorney to straighten things out, to no avail.
Now, I have received a new summons stating that we have defaulted on the loan and we are due in court in 2 weeks. I have absolutely no idea what to do, but I know they are going to continue this operation and continue racking up lawyers fees that we are supposed to pay unless we act. We never received any notification that Citibank had been taken over, or that our loan payments were going to be remitted elsewhere. Had we been notified I would have taken the necessary steps to ensure something like this wouldn't happen. PLEASE HELP!!!!!
In November, 2008, the day before thanksgiving, we received a summons stating that we had defaulted on the loan. Reason for the summons was due to the fact that when the Financial Bailout by the US Government was made, GE Capital bought out Citibank Delaware. GE Capital showed no signs of us ever making a payment to Citibank Delaware, so they were looking for the full balance of the original loan. We were given 5 business days to show that we had made payments accordingly or else they would take the equipment. That meant I had to spend my Thanksgiving weekend at work looking for check stubs from 2001.
I sent all the necessary paperwork to the attorney's representing GE Capital, at which time they agreed that we had 2 payments remaining on the loan. Only now, they want us to pay for the attorney's fees of $1600.00, which basically triples our loan payment.
After going back and forth with the attorney's, we agreed to make the final 2 payments in January/February of 2009. When payment time came around, I had no address to send the payment, so I called the attorney and requested the address. It took him 2 weeks to respond, and when he did I was told that they expected the lawyers fees to be included or they would not accept payment. I tried contacting someone at GE Capital to try and work this out, but had zero luck.
Since I was told the payment might be rejected, and the fact that I can't afford at the moment to have a payment of that size outstanding when it could be spent elsewhere, I sat on it. I have tried getting in contact with the attorney to straighten things out, to no avail.
Now, I have received a new summons stating that we have defaulted on the loan and we are due in court in 2 weeks. I have absolutely no idea what to do, but I know they are going to continue this operation and continue racking up lawyers fees that we are supposed to pay unless we act. We never received any notification that Citibank had been taken over, or that our loan payments were going to be remitted elsewhere. Had we been notified I would have taken the necessary steps to ensure something like this wouldn't happen. PLEASE HELP!!!!!