CH 13 - Leased vehicle back after 5 years
Date: Tue, 04/14/2009 - 08:39
The quick nitty gritty:
My wife filed for Chapter 13 in 2003 and had it discharged 11/2003.
At this point, 11/03, she turned in her leased vehicle(which was included on the Ch 13) and never received any further communication from Nissan Motor Credit.
It is our understanding now, that the car went for auction and that my wife was responsible for the remaining balance of the vehicle. This was never communicated to my wife.
She never received any communication from Nissan Motors as to what the vehicle sold for and how much the remaining balance was despite having a current mailing address.
Her credit report shows a last payment received on 6/2004- 6 months after turning in the vehicle and well after her bankruptcy was discharged. (were assuming this was the money recieved from the vehicle auction)
On June of 2008 Nissan charged off the account, which my wife never received a bill for or even a phone call about.
They now tell us they will remove the derogatory comments if we pay it in full ($5000), However the dates will remain. Or we can Settle in Full for 3200.
My fears are that if we pay it in full because the dates will still be associated with the account it will continue to hurt her credit. I'm assuming a Paid in Full will look much better then a Settled in Full? My other question is how is Nissan allowed to post negative comments on a Credit Report without ever sending a bill? or notifying her of the chargeoff? Has Nissan violated the Fair Billing and Fair Credit Reporting Act?
In not so many words Nissan has admitted to dropping the ball here. Do I pay them? Demand to see the documentaion for the sale of the auto vs what was owed? Get a Lawyer?
I had her ask for a validation of the Debt, copy of sale of the car, and how much was owed on the remaining balance when they sold it at auction. Waiting on this now....
Thank GOD, I love her,
Brian
Thanks in advance for any help
My wife filed for Chapter 13 in 2003 and had it discharged 11/2003.
At this point, 11/03, she turned in her leased vehicle(which was included on the Ch 13) and never received any further communication from Nissan Motor Credit.
It is our understanding now, that the car went for auction and that my wife was responsible for the remaining balance of the vehicle. This was never communicated to my wife.
She never received any communication from Nissan Motors as to what the vehicle sold for and how much the remaining balance was despite having a current mailing address.
Her credit report shows a last payment received on 6/2004- 6 months after turning in the vehicle and well after her bankruptcy was discharged. (were assuming this was the money recieved from the vehicle auction)
On June of 2008 Nissan charged off the account, which my wife never received a bill for or even a phone call about.
They now tell us they will remove the derogatory comments if we pay it in full ($5000), However the dates will remain. Or we can Settle in Full for 3200.
My fears are that if we pay it in full because the dates will still be associated with the account it will continue to hurt her credit. I'm assuming a Paid in Full will look much better then a Settled in Full? My other question is how is Nissan allowed to post negative comments on a Credit Report without ever sending a bill? or notifying her of the chargeoff? Has Nissan violated the Fair Billing and Fair Credit Reporting Act?
In not so many words Nissan has admitted to dropping the ball here. Do I pay them? Demand to see the documentaion for the sale of the auto vs what was owed? Get a Lawyer?
I had her ask for a validation of the Debt, copy of sale of the car, and how much was owed on the remaining balance when they sold it at auction. Waiting on this now....
Thank GOD, I love her,
Brian
Thanks in advance for any help
Hi Creditors while reporting any information to the credit bur
Hi
Creditors while reporting any information to the credit bureaus are not required to inform you of the status of your account. This is because it is your duty to make regular payments to the creditors. "Paid in full" or "settled in full" both have the same impact on your credit report. The only way you can improve your score is by removing the listing completely from your report. But since the debt has already been charged off, it is not possible to remove it from your report.
