When Michael Stanford purchased his Ford Expedition back in August from Aloha Motors in East Bakersfield, his monthly payment of $200 turned into a nightmare.
"Shortly after buying it after making my payments to Aloha, I received a default notice from a finance company out of Florida that I hadn't been making my payments and was up for repossession," Stanford said.
However, Michael was making his payments on time to Mid-Atlantic Financing and had his receipts to show for it. It turns out the financing company transferred Stanford's loan payments back to Aloha Motors without notice and the checks were lost in the process.
23ABC spoke with Phillip Gillet, a bankruptcy lawyer, who said it's not uncommon to have loan payments transferred without warning.
"There are debt buyers and transfers of these things all the time," Gillet said. "There are a number of complaints with the Federal Trade Commission about debt buyers and lack of documentation and lack of notice so it's a very common occurrence."
Luckily for Michael, he got his car back and settled the dispute. The moral of the story: Always keep your receipts.
"When the lender is saying that you didn't make the payment, it's going to be up to you to prove that you did and the way these debts are transferred so freely and without correct paperwork, it certainly puts a burden on people to have receipts and show that they had made the payment," Gillet said.