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Best way to handle Ally Bank repo

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Anonymous
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Best way to handle Ally Bank repo

I'm helping my brother cleaning up his credit.  Last night, we pulled his report from Creditchecktotal.  He currently has two collections accounts with PRA, $ 635 and $ 327, both in 2016 from Capital One, and a repo with Ally Bank back in 2015.  I know PRA does not PFD, I currently have one account with them, so I think it is best for him just to negotiate and pay if off.  As for the repo on his record, the balance is $ 6200.  His current scores are EX 621, TU 610, and EA 618.  He has a secured Discover card, and we got him a Capital One Platinum last night, SL of $ 300.  He is also an AU on two of my accounts so I think he has enough accounts to rebuild.  As for the installment loan, he has two deferred student loans.  I'm not sure if being deferred would help or does he need to open a secured loan with Alliant, as suggested by many here.  What would be the best way to tackle the repo?  According to him, a collection company has contacted him and was willing to settle for half, which he does not have right now.  He's still in school right now with a part-time job.  Would it be all right for him to set up a payment plan with the collection agency or should he contact Ally directly and offer to settle for half, in one lump sum, and ask for the repo to be removed from his report.  I can loan him the money to do it, but I just need to know what is his best course of action.  Thank you in advance. 

Message 1 of 3
2 REPLIES 2
RobertEG
Legendary Contributor

Re: Best way to handle Ally Bank repo

Does the original creditor still own the debt, with the debt collector having assigned collection authority, or has the debt collector purchased the debt?

Message 2 of 3
Anonymous
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Re: Best way to handle Ally Bank repo

I believe it still belongs to the OC.  I'm thinking to tell my brother to contact the OC to settle at half but with a condition that it is to report as just "paid" and "settled for less."  If they're willing to remove the account from his report, it will be great, but I doubt it since he's settling and not PIF.  I'm just concerned that if the OC refuses and sue him, then it will hurt him more.  I'm not sure what would be the best course of action for his situation.  I've read countless of posts about collections but haven't researched that much in dealing with repo situation.  Thank you in advance for your advice.  

Message 3 of 3
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