Auto loan being reported as a charge off - was never more than 30 days late? Help!

[TheBrules]

I had a truck loan for my pickup from Chrysler Financial.

Contract date: July 2004

1st payment was due 08/24/04

72 Month Loan

Per extensions is shows maturity date was 11-24-2010

TD Auto Finance took over the loan at some point when Chrylser sold their financing arm to them.

Over the life of the loan, I show 4 extensions in my payment history (full print out from TD Auto).

Pay history shows 30 days late: 16   60: 0   90: 0

Per extensions is shows maturity date was 11-24-2010

Last extension was 2-19-08 - from that point on I paid every payment per the website for TD autu per the amount due.

I made last payment 1-5-11 and the payment history shows a 0 balance.

I have the lien release signed 2-2011 and the title was promptly sent to me.

My issue is, TD Auto is reporting on my credit report, all 3 for both my wife and I that the loan was charged off, $0 charged off.

I have been round and round with the CRA's, with 2 dispute rounds, each time TD just verifies it was "charged off".

TD Auto in response to my letter I sent, sent me a copy of my payment history. This was provided to the CRA's with my dispute letter, which they flat out ignored.

So my question is this, in all of my research on consumer credit law, I can not find anywhere where it says how auto loan charge offs work. I got 2 people on the phone with TD Auto and the supervisor told me it was most likely charged off due to me exceeding my loan maturity date. If that is the case, I was still <60 days - can they charge off $0 if less than 60 days?

From everything I have read - to charge off a colloteralized loan, it has to be >120 days.

So - does anyone know if TD Auto is correct and has the power do what they are doing?

If not, how can I correct this? At this point, it seems like litigation is my only avenue?

If litigation is my only option - what kind of attorney would I need - and would it be worth it?

At this point the debt/rpt is 4 years old and will drop off in 3. credit scores are 690's to 700.

Advice? From eveything I have read on TD Auto - this is their SOP - they appear to be a VERY shady and vindictive company - almost as bad as the notorious LVNV folks lol.

So anyone have any advice on this one?

[TheBrules]

Wow did I stump everyone or what lol!!!!!!    

[TheBrules]

Last ditch bump - hopefully someone knows about this and how/what I can do about this........can't believe I stumped myFICO!   

[Anonymous]

Contact the Consumer Finance and see what you can get done with them would be my advice.

[seruby]

I am no credit expert by any means, but I would take 3 approaches if I were in your position:  1) send a MOV to the CRAs.  How exactly are they verifying that it's charged off if there's proof it was paid on time.    2) Send a dispute to TD Auto, informing them that reporting a paid account as a charge off is a violation of the FCRA.   3) File a complaint with the BBB and CFPB stating TD Auto is reporting a paid account as a charge off.

[dursty87]

The way I understand it is similar to you.  Once a car hits its maturity date and you owe a balance it can lead to a charge off.  However, from what I know, it has to be more than 60 days.  Seeing as yours was paid off within 60 days is interesting.  I don't know if this can vary by lender or if there is a law that protects consumers in this instance.  I can't offer any suggestions as this may be perfectly legal.  I am going to follow this thread and hopefully someone can shed some light...

[pizzadude]

Do you have your original loan documentation?   Perhaps there is something in the T&Cs that would shed some light on your situation.