Cancellation of Debt

[JellyBeanJJ]

Hi,

    I'm a newbie that wants to fix my credit. I have two issues and decided to post here in hopes I get help. I had two vehicle leased through NMAC. One vehicle was repossessed involuntarily it has a balance of $9436 due. The other vehilce was totaled it has a balance of $1846 due which is missed payments. What options do I have to get this behind me. I know I will have to pay the repossession off with time. Is cancellation of debt for the totaled vehicle an option? Is that a good idea? I'm so confused Please Help!!!!!

[RobertEG]

What was their net recovery/loss after any reimbursement from your insurance vs the unpaid amount of the loan?

If they have been made whole, then I dont see an issue of any remaining debt.  If not, they can pusue additional recoup of loss via business actions such as a charge-off or sale of the debt to another.

I'm skeptical that they would simply cancel any remaining obligation.  I would be concerned about an additonal reporing of a charge-off if there is a legitimate remaining debt, and/or referral for collection, or sale of the bad debt to a debt collector.

[singleindependentmom]

On the repo car they will sell it in auction and if they sell it for less than what you owe you will have to pay that back to the bank. It they sell the car for more than you owe you will get a check.

If they sell the car for less than you owe you can ask to short pay the balance to settle the debt. I'm going through this myself so that my experience.

As for the other one I'm not sure about.

[JellyBeanJJ]

Porgressive paid the total amount of the wrecked car. The balance of $1864 thats left over is for the months I didn't have the car. I did not pay the note while the insurance company notigated. That account has been charged off since 2010. The reposessed car was sold at the auction the account has been charged off also with a balance of $9436 since 2010. Should I call NMAC to see what my options are?

[guiness56]

If your insurance paid the total amount due I don't see how there are missed payments.  That should have been included in the pay off.

As for the repoed car, even after selling at auction, with all the fees and things, it could still be at or above the starting amount.  Did they send you an itemization of what was owed after the sale?  It is required by law.

[JellyBeanJJ]

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@guiness56 wrote:

If your insurance paid the total amount due I don't see how there are missed payments.  That should have been included in the pay off.

As for the repoed car, even after selling at auction, with all the fees and things, it could still be at or above the starting amount.  Did they send you an itemization of what was owed after the sale?  It is required by law.

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They paid the total minus the missed payment that were to be made on my behalf... No I didn't receive a itemization of what was sold. They may have mailed on out I moved out of the apartment where my mail was sent.

[guiness56]

That is very odd.   I was in the same situation.  My car was totaled but Progressive paid everything and I never made a payment from the day of the wreck until they paid it.

For the repo, they were supposed to report that amount to the CRAs also.  I would send the OC a direct dispute disputing the amount due.

[JellyBeanJJ]

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@guiness56 wrote:

That is very odd.   I was in the same situation.  My car was totaled but Progressive paid everything and I never made a payment from the day of the wreck until they paid it.

For the repo, they were supposed to report that amount to the CRAs also.  I would send the OC a direct dispute disputing the amount due.

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I have an amount reported on my credit report. Is that not it? What outcome would I have with the Direct Dispute?

[guiness56]

I might have misunderstood your post.  Is the balance listed what you owe after the sale of the vehicle?

[JellyBeanJJ]

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@guiness56 wrote:

I might have misunderstood your post.  Is the balance listed what you owe after the sale of the vehicle?

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 Yes, When I look at my credit report it shows balance 9436 for repo'ed vehicle. On my Equifax it actually says repossession, but on Experian it just says charge off. I'm more concerned about getting it off after I pay the account.