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Discover IT approval?

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maiden_girl
Valued Contributor

Re: Discover IT approval?

I have a question about your voluntary surrender. How much did you have to end up paying in comparison to the original loan? I only ask because I had a friend do this but they still showed it as a repo on her credit (not reported as a VS but a REPO as if she missed payments) and she had to pay them monthly installments as if she still had the car loan for the remaining time.

As of 2017, rebuilding...
Message 11 of 13
TrialByFire
Established Contributor

Re: Discover IT approval?


@maiden_girl wrote:

I have a question about your voluntary surrender. How much did you have to end up paying in comparison to the original loan? I only ask because I had a friend do this but they still showed it as a repo on her credit (not reported as a VS but a REPO as if she missed payments) and she had to pay them monthly installments as if she still had the car loan for the remaining time.


My CRs showed a balance of $1,953 (Lender said $3k) and I settled with them for $1k. I think it shows up differently with all 3 CRAs. For example, EX says "Paid in Settlement" and EQ says "Paid in full legally for less than balance owed" or something to that effect. Before I paid it, it showed as a VS or REPO, again depending on the CRA and how the lender reported it. More importantly, it doesn't matter if she took the car back to the dealership (ie VS) or if the repo man came and got it (REPO). What's important is she is still obligated to pay the balance on the account. I don't think FICO distinguishes between VS and REPO.

 

Sometimes the lender will sell the repossesed vehicle at auction and bill you for the remainder balance, including fees. So if your friend owed $5,000 at the time of repo and they sold it at auction for $2k, the lender may report the balance owed as $3k on the credit report. This is the portion she would still be liable for.

 

From my personal experience, I would ask the lender if they will PFD or at least settle the account. Visit the link below to some very excellent advice I received on this topic. I get long-winded sometimes lol but I hope this helps!

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Try-to-pay-or-let-it-go/m-p/3143786#M345755

Message 12 of 13
maiden_girl
Valued Contributor

Re: Discover IT approval?


@TrialByFire wrote:

@maiden_girl wrote:

I have a question about your voluntary surrender. How much did you have to end up paying in comparison to the original loan? I only ask because I had a friend do this but they still showed it as a repo on her credit (not reported as a VS but a REPO as if she missed payments) and she had to pay them monthly installments as if she still had the car loan for the remaining time.


My CRs showed a balance of $1,953 (Lender said $3k) and I settled with them for $1k. I think it shows up differently with all 3 CRAs. For example, EX says "Paid in Settlement" and EQ says "Paid in full legally for less than balance owed" or something to that effect. Before I paid it, it showed as a VS or REPO, again depending on the CRA and how the lender reported it. More importantly, it doesn't matter if she took the car back to the dealership (ie VS) or if the repo man came and got it (REPO). What's important is she is still obligated to pay the balance on the account. I don't think FICO distinguishes between VS and REPO.

 

Sometimes the lender will sell the repossesed vehicle at auction and bill you for the remainder balance, including fees. So if your friend owed $5,000 at the time of repo and they sold it at auction for $2k, the lender may report the balance owed as $3k on the credit report. This is the portion she would still be liable for.

 

From my personal experience, I would ask the lender if they will PFD or at least settle the account. Visit the link below to some very excellent advice I received on this topic. I get long-winded sometimes lol but I hope this helps!

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Try-to-pay-or-let-it-go/m-p/3143786#M345755


Yea. Unfornately in the FICO world, it doesn't matter if it reports as VS or REPO...they are calcuated the same but they do have the option to reference the type of action on your CR if they choose for manual reviews purposes. I've noticed the section on my credit report for it. Anyway thank you for the insight! It's great that you got that account settled and out of your hair for good!

As of 2017, rebuilding...
Message 13 of 13
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