CO voluntary repo, dispute errors??

[dbs8222009]

I purchased a vehicle through Capital One Auto Finance in June 2008. First payment was due at the end of July 2008, with a $307/month payment amount for 72 months. In May of 2009 I lost my job, and had no income. I called and explained the situation, blah blah blah they said they couldn't give me a forbearance/extension of any kind as I had only made 11 on time payments, and not 12 (3 different reps). I panicked, and was young and ignorant, so shortly after my account hit 30 days past due (July 2009), I did a voluntary repo/surrender. June of 2009 was the last payment I made. So here are the reporting errors, please correct me if I'm wrong:

• They sold the vehicle at auction and received this payment in September of 2009, which they are reporting as date of last payment?
• EX states 90 days late in July 2009? (technically was only 30 in July and 60 in August, CO in Sept?)
• They are still reporting a scheduled payment amount of $307...can they continue to report that after charging it off? Doesn't CO mean it is uncollectable and it is reported as a loss for tax purposes? There was no lawsuit or judgement, nor did I ever make payment arrangements for the balance (did I mention they called me 3 weeks after the repo to offer payment assistance?? Jerks!!)

The main reason I'm asking about that last one is because I'm trying to get a mortgage and it is hurting my debt/income ratio, severely, since I have another vehicle loan. Is this worth pursuing or would this be like poking a sleeping bear? TU says scheduled to fall of in July 2016, and as of right now, this account was never placed for collection with an outside company...I'm afraid if I dispute anything or approach Capital One that I will incur the wrath of a CA, as technically they can still hurt me until July 2016! But I also want to get approved for a mortgage! I'm torn. Any advice is appreciated!!

[RobertEG]

No, a charge-off does not mean the debt is no longer due.

The consumer still owes the full amount, and the creditor, their debt collectors, or heris to the debt may continue to attempt collection of the full amount of the debt.

A charge-off is an internal accounting measure that creditors can, and ottern are required, to take, and it merely moves the debt in their accountng ledger from an account receivable (asset) to a non-receibalbe, bad debt that is not expected to be paid.  Yes, the creditor receives a tax benefit from that accountng measure, but the debt is still owed, and if paid, they must then "reverse" that writeoff by declaring the received $$ as income.

Lates can continue to accrue after a charge-off, and the creditor can, and often does, sell the debt to a debt collector, and the debt collector is entitled to attempt collection of the full amount of the debt.

[dbs8222009]

I appreciate your input. My main concern was regarding the fact that they are reporting a scheduled monthly payment- I understand I still owe the balance regardless of CO, but shouldn't it be reported only as a total sum owed, not both? TU reports monthly payment as $0, but EX and EQ report at $307.

[RobertEG]

Kinda meaningless.  That was the last expected monthly payment.

Whether it continues to show a balance, and what amount it shows, is informational, and not a billing.

[dbs8222009]

That is what I thought, but it is not meaningless --the loan processor with Quicken Loans said because it states a payment amount, it has to be factored into my debt/income ratio, whether or not I *actually* pay it. That was the only reason I cared...Trying to get a mortgage with credit blemishes is a frustrating feat! But again, I appreciate your input!

[Anonymous]

If you are past the SOL in your state you could offer to settle for a % of the original amount. That would zero the balance and get it out of your debt to income calculation.