auto charge off

So she still has the car, it hasn't been repossessed yet? I don't completely understand and someone will be along with more information than I can provide you so hold on tight.

ladybug

First thing to keep in mind, is that the car can be reposessed at any time the account is delinquent. Some states may require them to send a notice that they intend to repo, but many states they can take it without warning. So she will always need to be weary that she might wake up one morning and the car won't be there.

The thing about them threating a chargeoff - is that "charged off" accounts are a whole lot worse for your credit report than an open/delinquent account. Down the road when she wants to get another car, a finance company might be willing to disregard some late payments on a previous account; but if they see her last car loan was charged off, they might not be inclined to giver her another loan because of that status.

Another thing, charged off does not always mean it gets sent to a collection agency. The Original creditor may keep the account and try to collect on it, or eventually repo the vehicle. If the OC does sell off the account, whoever buys it can collect and/or repo the vehicle.

Wow! I had no idea that a vehicle could be charged off. I thought they would just come and repossess the vehicle, sell it, and be done with it. Learn something new everyday! Thanks for the info. :-)

It depends on the company's policies. I'm not sure how big of a balance mjwhaap is talking about ...

I have had customers that got to the end of their loan and might have $300 in late fees that they never paid. In a case like that, I have never gone and repo'd a car just because someone owes me late fees. I will send notices out for a few months, make a few phone calls, and then eventually charge it off. However, I keep the title... sooner or later, when the customer ever wants to sell the car or trade it in, they will need to payoff the account in order to get their title back.

Ohhhh! That makes sense, definitely. I can see charging off a small balance and allowing the customer to keep the car without repossession, but not giving them the title. Thanks :-)

So, if the creditor has charged off the loan, I can part-out the car and make some money ?

By "part-out" do you mean sell it? You can't sell the car without the title. They finance company will hold onto the title until the loan balance has been paid.

I suppose you could take it to a chop-shop and sell it for parts, if they're willing to do that without the title. Technically it would be illegal, but if the creditor has never bothered to repo it, then they probably wouldn't find out anyway.

My wife has been paying on a car from Drive Financial for almost 6 years. Last June she called and got a pay-off quote from the manager for $1300. We paid the $1300 and never received the title. In October we called to check on the title and were told she owed $800 (in misc. fees that were added after we paid it off). They settled for $200 and we sent the money to the collection dept. 2 weeks later I called and they said not to call back, they'd mail the title.

In January I called again looking for the title and we were transfered to the Charge-off Dept and told we owed $500. They are charging late fees and fines even though we paid it off last June and have not received a phone call or bill since then. When asked why, the lady said "they must have left a message"

Her credit report shows her account was charged off with a balance owed of $500. They continue to report missed payments every month even though it shows it has been charged off. Should we even bother giving them any more money? Is there anything worse than a charge off? Would a bankruptsy stop their negative reporting?

Only thing worse than a charge off is a bankruptcy...and for $500 I don't think it's worth a BK listing (unless of course you have other bills).

Keep in mind tho, if you file BK and include the car, you still won't get the title until it is paid off. Sounds like they are yanking your chain. Perhaps DebtCruncher can provide more info than me.

Well, the question is whether their additional charges are legal or not. I question why they kept giving you one amount to pay, and then after you pay it they say you still owe more. Did you ever happen to get anything in writing? If not, then it's hard to prove that they gave you one particular amount and then changed it.

You can request an accounting of your balance, as well as a ledger history of all payments & charges made on the account. Then you can see how they are calculating your balance. Generally the only "charges" they should be adding are interest and late fees (they can only charge 1 late fee per installment, and can't keep charging late fees after the final installment). If it doesn't "jive", or if they won't give it to you, you can file a complaint with your state DFI.

Bankruptcy isn't going to be viable to you. 1) As long as they have the title, you can never re-sell/trade-in that vehicle. 2) Because they are a secured creditor, even if you file BK, they will have to be paid if you want to keep the vehicle.

Hey DebtCruncher...I PM'd you...can you help me with my auto issue, please? Thx

I would love to help ... but there's not a PM in my inbox ... try sending it again.

To answer your questions, we did get a copy of the payment history and it clearly shows the pay-off amount of $1300 and a payment made of $1300. The check states. "For Payoff" in the memo spot. However, they split the payment and paid $800 to the pay-off and added a $500 fee that was not on the account before that and never sent us anything telling us they did that or sent us anything after that. My friend in the finance business said that by doing that, it left a principle balance.

I was told they cannot charge fees and penalties to fees owed, so they left a debt on the principle balance so they could run up the fees again; even though the check stated "for principle pay-off".

The history shows all the transactions and payments we have made since the "pay-off" and they are applying them to fees instead of principle even though they said the payment would settle the account.

They continue to report missed payments to the credit bureau and have still not sent a bill since we paid it off. I did decide that we are not paying another dime until something is in writing, we are just so frustrated that they can get away with this by holding our title hostage. Six years of paying on this vehicle and we are getting 'muscled' now and don't know how to stop it.

Ok, I have a car that was charged off on my credit report with a zero balance. I stopped paying on the car about 2 years ago. I am just now getting calls stating the want to repo the car and or will charge me with grand theft. Can they do that if the car is charged off with zero balance and without notification?

Your car loan is charged off as bad debt....that doesnt mean that the debt goes away. They can repo it at anytime.

How is that..doesnt a Charge off mean they got a tax write off for the bad debt? Is a repo after a charge off double payment for one debt?

How so? You didn't pay for the vehicle, they CO'd your account and took back the vehicle, sold it at auction for less than you owed, so how do you figure they got a double payment for one debt?

NASCAR, I think what Toyia is trying to get at is this. Banks take a charge off on the loan, they then get to write off that charge off on the banks taxes, then if they repo the car and sell it they would then have the money from the auction and the tax write off.

HI Toyia...Regarding the charge of grand theft. You can not be charged with anything. This is a lie. The worst thing that will happen is they can get a court order for you to turn over the car. This is still a debt and debt is a civil matter.

I hope that eases your mind.

Thank you Sassy lil brandy...knowing this will allow me to breath.

I thought so. I have a friend that manages a dealership so anytime there are questions regarding auto debt, I always pic up the phone and call him.

My auto loan was charged off and I paid $5,700 to catch up
$2,300 of arrearages, and the rest to principal, and started
continuing my payments. Now i totaled my car and called
them for a pay off figure, i was told $8,500, but when my
Insurance company called they were told $11,400, because
the insurance company is now paying them and not me.
What recourse do I have, they are stealing my money!

hi my five year contract is up and i owe $1375 on my car and the lender stating they going to charge off my car can they do that

I have a question my auto loan was charged off and i still have the vehicle whats is the next possible step's or actions that could happen please let me no thank you.

I finally made the final payment on my car a year ago and now i run my credit and it states that the lender has charged off the balance. I called and they said that it's late fees and interest. I asked why I hadn't received a bill and they said they don't send statements after the principle is paid off. Is this legal. I didn't even know there wasn anything else due and they never informed me of any outstanding balance.

I have had a loan with Drive Financial for over 5 years now and my ending contract date is August, and I still owe 5,000. They are talking about a charge off. I ask could I just bring the vehicle to them and they told me no, is that correct

I bought a car when I was 19. Shortly after buying the car, I was out of work and my parents offered to take over the payments for me as a belated graduation gift - this was about about 10 years ago. I bought a newer car recently and decided that I wanted to sell the older car. When I went to get the title from my mother I learned that the loan had never been paid off. She and my step-dad never made any payments on it. The car was never reposessed and a charge off has never shown up on my credit report. Based on when I made the last payment, I know the statute of limitations on the debt has long expired so the lender has no legal claims. But I'm not sure what to do with the car. I doubt the lender will want a 14-year-old econo box to sell at auction. I don't even think the lender is still in business. I don't have room to store the car but I can't sell it, since I don't have a title. What is my best option for getting the car out of my driveway?

Donate it to a charity or scrap it.

Perhaps it was charged off...a charge off can only remain for 7 years...you said the last payment was 10 years ago...it probably came off your report...I know that's not the issue here now...

Problem is you don't have title to the car, so you can't sell it.

I think you need to at least send a letter (CMRRR) to the lender or whoever holds the title to let them know they need to get the car. Give them 30 days from receipt of your letter to take action, otherwise you will dispose of the car.

I believe you need to show that you tried to contact the owner (title holder) to come get the car before you dispose of it. IMO.

After that, then get rid of it.

My car was charged off and i was going to settle with them for 3500. Is a settlement the same thing as paying the charge off? I was told they were going to take the repo off of my credit report and put it as a settlement. Will that help out my credit or is it about the same thing?and also I paid the 3000 and i told them i was going to pay the rest in a couple weeks. I have tried to call muiltiple times and no answer. Do you think theyre not answering on purpose or maybe im just calling at the wrong time?

Who is not answering...the lender or the CA...

Its the lender. It wasn't sent to a collection agency. Its apart of Wachovia, its like their collections department.

Not likely at all. "Charged off" means they wrote it off as a loss on their taxes. If it is still with them, then it is likely not charged off. What is the name of this alleged "collections dept. of Wachovia"?

A settlement is good, ask them to note the account as "Paid As Agreed" rather than the usual "Settled for Less Than Full Amount". Either one is bad on your credit, it will take some time to recover (after 6 months your score should start creeping back up) as long as this is the only outstanding debt you have. I hope you got your settlement deal in writing before you paid (and that the great pay-for-delete offer is on that letter) because if you didn't, then you have no proof of the offer and they will likely come after you for the remainder..

My car is in repo status. The financial advisor put states the car was charges off and its in repo status. What type of help could i get to resolve or pay the whole total amount on charge off?

Quote:

I have a loan with them too and they wont send me anbything after paying off the debt! Did you get any help?


Quote:

Same situation, was sick and in hospital for 2 yrs. Had the car in storage. Now credit report says it has been charged off profit and loss. And credit report says I OWE NOTHING 0. They said keep the car. but the title will always have a lean on it. So I feel like crap about it. but I have been sick and could do nothing about it. The way our economy is. This is happening allot.

What does charge off never late really mean I understand that charge off isnt good but the auto company putting never later is that better than it just saying charge off.

if my car was to be repo'd and the loan was charged off on my credit, can someone i know with decent credit buy the title....i have had the car for 2yrs and the loan company hasnt gotten it...i know i will still be responsible for the debt but can somebody buy the title from collection for partial of what i owe?