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Established Member
Posts: 18
Registered: ‎02-08-2012
0

Auto charge off keeps increasing

So my Wells Fargo Dealer Services (formerly Wachovia) charged off in March 08 with $7000 balance it's now showing a $9960 balance. It's increased over the years.  Can they do that?

Starting Score - 482 EQ (2/4/2012)
Current Score - 542 EQ (SW 3/22/2012), TU 505 (2/25/2012)
First goal - to get into the 600s
Contributor
Posts: 265
Registered: ‎01-27-2012
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Re: Auto charge off keeps increasing

They absolutely can unfortunately. I had a Citi acct that went from 5500 to 7500. They can even continue interest once a payment arrangement has been set up but they usually don't as long as it's a fairly quick payoff payment arrangement.
Starting: EQ 498 TU 501 EX 485 (9/23/11)
Current: EQ 552 TU 591 EX 572
Goal: All 3 above 700

Mega Contributor
Posts: 19,471
Registered: ‎03-19-2007
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Re: Auto charge off keeps increasing

When a creditor does a charge-off of a debt, it is an internal bookeeping measure on their part, and does not affect the debt obligation by the consumer.

It is still unpaid debt.  Debt does not cease accruing interest on the unpaid amount because it becomes delinquent.

Moderator
Posts: 4,189
Registered: ‎03-24-2008
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Re: Auto charge off keeps increasing


Creditdreamer wrote:
They absolutely can unfortunately. I had a Citi acct that went from 5500 to 7500. They can even continue interest once a payment arrangement has been set up but they usually don't as long as it's a fairly quick payoff payment arrangement.

+1,   On your auto loan contract will state the interest they can charge. Also check you state laws for the maximum interest they can charge.

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Established Member
Posts: 18
Registered: ‎02-08-2012
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Re: Auto charge off keeps increasing

Update:  This auto loan was charged off and never repossessed.  I called Wells Fargo Dealer Services and spoke to someone who told me Vital Recovery Services has the debt; If I pay/settle with them they then can send me the title.

 

I called Vital Recovery Services and spoke with someone who would settle the account, possibly for 20 percent because of the age (CO Mar 2008).  I'm assuming then that it will update as paid/settled charge off.

 

From what I understand, this will not reage the debt right?  It's still on my record for 3 more years then...will it have an effect on my score at all to have this show paid/settled?

 

Thanks!

Starting Score - 482 EQ (2/4/2012)
Current Score - 542 EQ (SW 3/22/2012), TU 505 (2/25/2012)
First goal - to get into the 600s
Regular Contributor
Posts: 246
Registered: ‎12-14-2011
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Re: Auto charge off keeps increasing

I always thought if you pay it off it will look as if the account is newer than it actualy is when they update the balance , of course i may be wrong .

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Contributor
Posts: 265
Registered: ‎01-27-2012
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Re: Auto charge off keeps increasing

No. If reported correctly, the date should report the date of first delinquency. Only updating it should just update the amount and the last reporting date.
Starting: EQ 498 TU 501 EX 485 (9/23/11)
Current: EQ 552 TU 591 EX 572
Goal: All 3 above 700

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