I posted this in the rebuilding your credit forum, but then found this one
I've been lurking on this site for a while now and have found some good tips. So far I have had two items deleted from my report, taking my score from 535 to 561.
Here is my current problem:
I separated from my ex husband in 2009, have not really spoken since and most likely will not. I pulled my credit report and saw that the car that he had, which was under both our names, was charged off in 2010. I found out that the car was totaled and insurance paid the value to the lien holder, but the gap coverage did not pay the balance.
I contacted the gap coverage company and asked them to send me a copy of the contract and they sent only the front page. I responded (via email) asking why they didn't pay the balance.
Meanwhile, the balance, of $3k+, is at an attorney collection agency. I called and told them that I shouldn't owe this and am currently working with the gap company to find out why they didn't pay the balance.
It's been 5 business days and I still haven't heard from back from gap and am worried that the CA will start the process to sue me for the balance.
Should i write formal letters to both companies, letting the CA know that I am disputing the charge (which I already did with transunion, but the debt was reported as valid), and to the gap company asking why they haven't responded to my email and that I am challenging their original decision to not pay?
Thanks for any advice!
Edit: I am not sure why but my post showed nothing twice. Here is what I said:
A few years ago I totaled a car. I went to my agent at State Farm after they had totaled out my car, and signed some paperwork for them to mail out the check (which I saw right in front of me). 3 months later Chase (my loan holder) calls me and ask why I haven't been making payments for 3 months. I told them what happened and they suggested I call State Farm back because they "had a history of not mailing checks out". I called and they apologized and mailed it out the same day.
2 weeks later I got a letter from the gap insurance provider letting me know that they were covering the difference, but they didn't cover late payments. So I was pretty much liable for the 3 months that State Farm decided to wait to mail the check.
Maybe this is what happened, or something similar? Maybe your ex was just late period, and the gap insurance you had wouldn't cover it. I know that for me, Chase never reported me late for those 3 months so it wouldn't necessarily show on your credit report. I would still write everyone and try to get to the bottom of my they didn't pay!