Hard work gone down the drain :(

[Goodscore81]

During the past few months, I have been successful at getting 2 CO and a few collections off my CR. I only had 1 more collection to deal with on TU and 2 more on the others. During September, an auto loan went into CO status. I got this loan for a family member (mentioned in a previous post). The balance is more than I have ever owed any single creditor, outside of student loans. I don't know what to do at this point...the car has not been repo'd, but I'm sure it's in the works. Also I have not spoken to the finance co. What are my options? Has anyone ever been able to make a situation like this right? I'm not sure what this has done to my score.

[09Lexie]

Contact the finance company and see if you work out pyt arrangements and delete the derog status. If they are actively looking for the car, you might be able to negotiate a deletion off of your CR's if you turn the car in.

[Goodscore81]

Thank you!  I'm going to contact them this week.

[RobertEG]

Is the loan and the vehicle in your name only, or did you cosign for the family member?

Are you monitoring the status of payments to ensure they are made, or leaving that only to the family member?

[Goodscore81]

The loan is in my name only.  I monitored at first, but these people are good about calling, so I would find out the payment was late when I got the call. 

Sometimes they would tell me oh, I'll do it today... and it would never happen.

[DaBears]

I feel your pain. My scores are pushing 800. I will never ever again co-sign for anyone!!!! I learned my lesson when I was younger!!!!

[fishbjc]

Yeah, been there and done that.  Helped my dh's sister out and she never paid the loan off.  My parents got stuck with 15k by co-signing.  N E V E R   A G A I N ! ! !

OP, I hope you can get this worked out.  Keep us updated.

[Goodscore81]

Update:  I never actually talked to the finance company (too scared to call and plus don't have any money to make arrangements).  So, I received a dunning letter from a law office last week.  The amount on the letter is lower than what's reported on my CR.  The finance company last reported 11/12/13.  So I'm not sure why there is a difference in the amount.  I'm going to send a DV to the law firm this week.  Should I dispute the item on my CR?   

[p-]

---

Goodscore81 wrote:  Should I dispute the item on my CR?   

---

The dispute is the least of your worries. It's a legitimate debt and won't help you. They are going to repossess the car, auction it off, and sue you for the balance.

I know it's not really your car, but on paper you bought a car, left with it, and never paid. Odds are good that you will face a garnishment.

On paper you own the car. So go get it. Start driving it yourself, and make the payments on your own if you can get the company to stop the repo action.  Talk to the lawyer and explain the situation, and tell them that you now have the car and are willing to resume payments.

Ignoring this problem will be a major mistake.  When they sue, they will win, especially if you no-show.  Then, they will take your money regardless of whether you can afford it.  After that, you'll have a public record on your credit report for the next ten years or so, effectively decimating your score.

They're going to get the money, no matter what.  The only choice you have now is how badly they ruin your credit.  

Good luck...

[CWESTL]

Avoiding the issue will not make it go away. The sooner you deal with this the better. You should contact your family member and the finance company to determine how to move forward. Your lack of confronting an issue may have/be contributing to why your family member feels comfortable screwing you. NEVER place control of your affairs (i.e. credit, etc.) in the hands of others. If a bank requires a cosigner then the person should wait until they qualify on their own.