auto chargeoff

[treschic]

Hello everyone.  i'm trying to apply for a mortgage in the next 2-3 months, and have been trying to clean up my credit for the past 9 months in preperation for this. 

My problem is that i co-signed a car loan with my boyfriend in 2004 (he's now currently my ex).  the car was originally for me, but since i was in school, he decided to purchase me a car, which is why i co-signed.  his car broke down a few months later, and we shared my car, until he eventually took it altogether.  i tried to get my name off the loan, but was told he couldn't qualify on his own, and there was nothing i could do legally (i sought an attorney's help).  anyways, he was in the navy at the time, and the payments were being withdrawn directly from his paycheck.  anyways, my mother and grandmother start calling me, telling me that the loan people are calling them, telling them that i owe them money, and there is a warrant for my arrest for theft of the vehicle, if i don't tell them where he is at.  I sought an attorney again, who  by the way was very rude and said, well pay them the money, you owe it!! which wasnt the point, my point was, is it legal for them to call my mother and grandmother and threaten me, or even tell them this type of information?  i dont even know where he lives, or where he was at.  when i finally got in touch with him, i asked him, whats going on, why haven't you paid? he had been discharged from the navy, and was unemployed, but said he'd just made a payment to get the car payments up to date. 

 This is my problem,. when i looked on my credit reports, i see the car is being reported as a charge-off , they reported 30,60,90,120,and 150 day lates january-june 2007, but july-jan 08 as current.  the car was supposed to be paid of dec 2007.  anyways, long story short, has anyone else been in this position, and what have you been able to do to get the lates off and the status changed to paid?  i don't mind paying, but given their behavior in the past, i just want to have all my information together, before i have to call or write them.  thanks for any advice.  sorry, this was soolong

[llecs]

The calls to your family were wrong, especially if they did it more than once. Also, it is illegal them to threaten arrest when no crime has been committed. All of this is covered by the FDCPA in sections 806 & 807. Furthermore, your state laws may provide more protection based on your location.

Legally, as a co-signer, you are obligated to the debt, as is your ex. If it is current now, maybe it was never charged-off. You could always go the GW route and write in a page or less your story. Keep it short.

BTW, who was calling: the CA or OC? Also, find a new attorney, if needed.

Edit: OK, I see that is says charge-off. It is paid off now?

Message Edited by llecs on 01-23-2008 01:19 PM

[treschic]

No, i don't think it is current.  For some reason, they are just reporting it current now.  its not paid off.  it is still showing a charged off. on closer insepection, it is only showing current, because they haven't updated since july 07.  what can i do? by the way, it was the oc that was calling. 

Status: Account charged off/Past due 150 days. $4,024 written off. $3,127 past due as of Dec 2007. Status Details:  This account is scheduled to continue
record until Nov 2013. Date Opened: 12/2003 Type: Installment Reported Since: 04/2004 Terms: 45 Months Date of Status: 07/2007 Monthly Payment: $0 Last Reported: 12/2007 Responsibility: Joint Credit Limit/Original Amount: $15,122 High Balance: NA Recent Balance: $2,516 as of 12/2007 Recent Payment: $0 Account History: Charge Off as of Jul 2007 to Dec 2007 150 days as of Jun 2007 120 days as of May 2007 90 days as of Apr 2007 60 days as of Mar 2007 30 days as of Feb 2007

[llecs]

Sorry, scratch what I said. FDCPA does not apply to an OC. Also, if the OC is based or collection from the same state that you live in, then federal law does not apply, only state law. But there are a number of states with great laws on the books that protect you from this. You'd have to hunt around your state's website.

I don't know if this is right, but I'd call the OC and get a balance update and try your best to go after the ex. Maybe he caught up and paid the balance down to nothing. You could also go the PFD route if he's stopped paying all together. I would do the PFD before he pays it off though.

[Anonymous]

OK no collector can discuss thereasons for calling with any party other than yourself.  I would get an intent to sue letter off as well as a letter to the FTC under the FDCPA.

[llecs]

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Brammy wrote:

OK no collector can discuss thereasons for calling with any party other than yourself.  I would get an intent to sue letter off as well as a letter to the FTC under the FDCPA.

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I thought that too but it is the OC that was doing the collection. The definition of a "debt collector" in FDCPA is this:

"The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts..."

and does not include this:

"The term does not include— (A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor; (B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts..."

So I'm thinking that OP's state has some sort of Consumer Protection office or laws relating to such. Now, it is true that not all OC's and CA's know the law. We see evidence of that here. I bet DVing this OC wouldn't hurt and as Brammy says, send an ITS letter (I'd do that first). You may force them into an amicable agreement. But also figure out where the account stands. Maybe the car was repo'd and you don't know it yet.

[treschic]

i want to just pay it off.  i dont know if i should do a pfd or just ask them to delete the late pays and remove the charge off status to reflect paid in full.  last time i trusted him, he said he was making payments.  its too hard to get him to even pick up the phone, much less trust that he will actually pay.  i'm just gonna take a loss on the $2-3000.  i'll probably just use my tax refund, for this purpose.  so, i just want this gone.  which route do you think is easier? pfd or changing the status to paid in full with no late pays?  thank you all for your assistance.