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Charge off repo balance still increasing

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MOMO30
Regular Contributor

Charge off repo balance still increasing

Hello I was a co signer on a car and it was a repo in 2008 balance was $ 3,800 at that time 

now it's over $6,000 due to interest building up.

 

 I was told by the finance company that the car was sold for $900 

I may be wrong but I thought once the car is sold all you have to pay off is the 

the balance and any fees.... can they still charge me interest after the car is sold?

 

i just wanna pay the car off but not double of what was owed

Message 1 of 6
5 REPLIES 5
webhopper
Moderator Emeritus

Re: Charge off repo balance still increasing


@MOMO30 wrote:

Hello I was a co signer on a car and it was a repo in 2008 balance was $ 3,800 at that time 

now it's over $6,000 due to interest building up.

 

 I was told by the finance company that the car was sold for $900 

I may be wrong but I thought once the car is sold all you have to pay off is the 

the balance and any fees.... can they still charge me interest after the car is sold?

 

i just wanna pay the car off but not double of what was owed


Unfortunately, yes...  they can charge interest on the unpaid amount....  I would try to settle if I were you... You don't want them to come after you and try to garnish your wages.

FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 2 of 6
bettercreditguy1
Established Contributor

Re: Charge off repo balance still increasing

In selling the car (in this case) since it did not cover the loan, you are responsible for the balance, plus collection, legal fees, and any other charges, ie towing, storage, filing etc. Your best bet is to address this as soon as possible. The lion is only going to get bigger! It is NOT going to go away.

Updated scores 3/7/21 TU 849, EQ 829, Ex 818 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience
Message 3 of 6
guydiver
Established Contributor

Re: Charge off repo balance still increasing


@bettercreditguy1 wrote:

In selling the car (in this case) since it did not cover the loan, you are responsible for the balance, plus collection, legal fees, and any other charges, ie towing, storage, filing etc. Your best bet is to address this as soon as possible. The lion is only going to get bigger! It is NOT going to go away.


+1.  This stuff adds up fast.  There are businesses out there that make their living on stuff like this.  The bill keeps going up until it gets paid.  They can ruin you credit wise, and they'll keep coming. 

Message 4 of 6
Repo-ed
Senior Contributor

Re: Charge off repo balance still increasing

Man, this makes me sick to my stomach reading it.

 

Address it stat or it will be a long 7+ years!

5/2012: 560 credit scores across the board
12/2014: 750+
3/2017: 780+
11/2019: 833
2/2023: Experian via Chase United Explorer CC pull - 891
Message 5 of 6
Shogun
Moderator Emeritus

Re: Charge off repo balance still increasing

+1  They can charge the associated fees and still tack on the interest.  I know it's a bad deal all the way around, I would see if you can fix this soon.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 6 of 6
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