Repossession Settlement

Anonymous · ‎01-15-2008

Hello Everyone,

I need some serious direction on this. I have a vehicle that was voluntarily surrendered in 2003. It was sold at auction in May 2003. My credit is still showing I owe an additional $9,000. The loan was with American Honda.

1. What should I offer in a settlement because the debt is so old?

2. I purchased the car in Texas, but now live in Georgia. The SOL for Texas is 4 years and Georgia is 6. My question is, could they still sue me for the 9,000 by the Georgia SOL, even though the contract was written in Texas?

CreditDrama85 · ‎01-15-2008

Dispute it with the CBs if you dont think 9,000 sounds right....see what they come back with.

if you dont have any money to pay this...do nothing. once you lift a finger, you wont get a moments rest--so be ready to deal with it.

Anonymous · ‎01-16-2008

CreditDrama85 wrote:
Dispute it with the CBs if you dont think 9,000 sounds right....see what they come back with.

if you dont have any money to pay this...do nothing. once you lift a finger, you wont get a moments rest--so be ready to deal with it.

I agree with CreditDrama85. If you don't have the 9000 or at least 85% $7650, don't bother. In Florida, I hear that number tossed around alot, 85%. Typically this is the percent of the debt that most auto lenders in FL are willing to settle for.

I had an auto loan that I cosigned for that went into reposession. These aren't the exact numbers but here is a run down:

Amount owed: $7800
Repossession fee: $600
Towing: $100

Repairs: $1400
Prep work at auction: $250
Sold at auction: $2500 !!!!!!

Amount owed: $7650
They may as well have not sold it at auction. So anyway, I was able to settle for 75%. Gave em $5800 for a PFD. They still left it on the main signers credit with the a balance of the remaining 25%.

I don't know how much luck you will have with disputing it with the CBs since you will probably have a similar run down. If you have don't want t to risk it, I wouldn't do anything for now. It shouldn't be collecting interest. If I did anything, I would get the OC to detail the $9000. But only if you're sure your not causing your self more trouble.

Anonymous · ‎01-16-2008

I am actually trying to settle because I want to purchase a hom

Anonymous · ‎01-19-2008

I was in the same situation...the was a voluntary repo. After the auction, I owed $8,526. I did not respond immediately and the interest steadily increased ($9876). I have worked out a payment plan on the balance $250/month. Watch your CR to ensure this does not reflect a new TL but a collection account. This does show I am paying on the debt and my CS has increased about 15 pts. since making regular payments.

My only regret is that I did not request a PFD. Curious if I still have negotiating power since the account has a balance of $8300...

Anonymous · ‎01-24-2008

sandy2 wrote:
My only regret is that I did not request a PFD. Curious if I still have negotiating power since the account has a balance of $8300...

My PFD was before my myFICO days. As a matter of fact I didn't even know it was called that. I did however, know that I had some leverage seeing as they wanted their money and I was about to get some. I was about to start my first job and was receving a starting bonus that was about as much as the balance they wanted me to pay. So, I showed them the proof that I was receiving this money and was able to negotiate the "delete." I didn't know I could negotiate a delete since I thought it was against the law to remove factual information from one's credit report. So all I asked for was that there all derrogatory information be removed from the reporting of the account. So the account is still there. It is just showing as a paid in full, good, closed installment account. If you have the money ready, I would go for it. If not, I don't think the leverage is having a large remaining balance so much as it is having a large enough amount of money that they can have now as opposed for waiting 3 or 4 years in collecting.