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Member
RR5
Posts: 26
Registered: ‎12-20-2011

Big Unpaid Repo ?

Hello,

I've been lurking here and trying to clean my husbands credit but we have one big issue. He has a repo from Dec. 2008, and the deficiency amount was 10k, now it's showing that some collection agency owns the debt but the amount is 20,xxx. I have no idea what to do, we really would love to get a house in two years or so, but with this, we have to wait for atleast 4 more years.  We cannot pay it of in full, maybe 5k the most. What would you advice us to do?   We're planning to wait it out but would live to get a house sooner while the house prices are low. Statue of limitation on written/prommisory note is 6 years in our state

 

Should we even bother offering them a settlement of 5k?

 

Also if it matters, they're not trying to collect the debt at all. We haven't gotten any collection letters or phone calls at all in the last 2 yeras.

 

Any advice would be great. We're really struggling with this one.

Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

Re: Big Unpaid Repo ?

Has the CA sent a dunning notice or anything of the sort?

 

a PFD could be an option.

Member
RR5
Posts: 26
Registered: ‎12-20-2011

Re: Big Unpaid Repo ?

No we haven't gotten any letters from collection agency at all. When i checked the credit report that's when i found out that the agency own the debt now. The original bank is also still showing a balance, which is odd because i though after they sell the debt they're suppose to put a 0.

Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

Re: Big Unpaid Repo ?


RR5 wrote:

No we haven't gotten any letters from collection agency at all. When i checked the credit report that's when i found out that the agency own the debt now. The original bank is also still showing a balance, which is odd because i though after they sell the debt they're suppose to put a 0.


They can both report the neg. TL.

 

I'm going to have to lean towards PFD, but understand that is going to take the 10k.  If they don't take it and want the 20k, well...

New Member
antrad
Posts: 1
Registered: ‎02-25-2012

Re: Big Unpaid Repo ?

[ Edited ]

after the account is sold, isn't the original creditor suppose to report a 0?

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Big Unpaid Repo ?

Yes, if the OC has sold the debt, they are required to report a timely update of your credit file to show $0 debt balance owed to them.

 

How does your CR show that the debt collector now owns the debt?  An assigned debt collector reports the amount under their collection, which may or may not be debt they own.

At that point, both can properly report a balance.

 

The problem faced at this point is that you now have two different derogs reported on the same debt.... one, the reporting of the repo by the OC, and two, the reporting of the collection on the unpaid debt.  Being reported by different parties, each can only agree to delete their own reporting.

 

Which derog is your primary focus for deletion?  If it is the repo, then the OC is the party to address.  If the collection, it would be the debt collector.

Payment in exchange for deletion could not be offered to the OC if they have sold the debt.

Member
RR5
Posts: 26
Registered: ‎12-20-2011

Re: Big Unpaid Repo ?

The report shows that the original creditor charged-off the balance and  the collection company shows an open account and collecting. So if they didn't sell the debt then, just assigned it, then both can report the balance? It's odd because the originla creditor still shows a balance of 9k and collection company 21k. So if i want to try to settle with them, who do i call? Is it even worth trying to settle or they'll just turn around and sue me? i was wondering of offering them 25% since i cannot pay more, is it worth a try?

Thank you!

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Big Unpaid Repo ?

If the OC still owns the debt, which would be indicated by the fact that they are still reporting a balance, then yes, both can report.

It is not really "double reporting" of the debt.

The OC is reporting the debt owed to them.

The debt collector is reporting the amount they are authorized to attempt to collect.

Should the debt collector purchase the debt, the amount they are reporting would then become both debt owed to them and debt they are attempting to collect.  The OC would then report $0.

Member
RR5
Posts: 26
Registered: ‎12-20-2011

Re: Big Unpaid Repo ?

Hello!

I just wanted to post an update. I did some research about repo laws in my state and things like that and wrote a letter to the collection agency that was woking for the bank. Stating that there was these laws that they did not follow when they repoed the car and said we are willing to offer 25% of the original balance to settle the account in full.

 

Suprisingly, the bank (not the collectin agency) replied back to us within 30 days that they would be very happy to settle the 21k balance for 2500 and that they would stop all the collection activity and close the account and show that it is paid in full. The letter they send us said that they would still love to have us as their customer and that after we close the account, we agree not to sue them for any reason!

 

Within 15 days the collection disappeared from our report and the bank balance is now shows 0.     :smileyhappy:

 

Moderator
Shogun
Posts: 12,884
Registered: ‎04-15-2011

Re: Big Unpaid Repo ?

Nice outcome.  Congrats!


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