How to Move Forward with Carmax Repo

[newmom24]

I have a repo with DOLA of 6/2009 with a balance of $7131. The loan was opened in 2005. I received a settlement offer a few years ago for $3400. I never responded and I haven't received anything from them since. SOL is 7 years in my state. Should I contact them to make payment arrangements or should I leave it alone. Thanks for taking the time to read this...

[guiness56]

Are you sure your state SOL is 7 years?  I have never seen one for that time period.

[newmom24]

I live in Florida. I thought I read the SOL is 7 years ... Is it different for repos? I'm still reading so forgive me if I misunderstood.

[RonelTek]

SOL is 5 Years in FL  , negative tradeline can stay on your report up to 7.5 years

Orlando Florida here...

[RobertEG]

Whether to "leave it alone" also depends upon whether you see importance in having no unpaid, delinquent debt, or if expiration of both SOL and credit report inclusion is sufficient in your view to hide the unpaid debt as a potential future issue.

Expiration of SOL will provide defense against any legal action they might pursue to obtain a court order to pay the debt.

Credit reoort exclusion of the repo, which is a similar action to a charge-off and would thus have a credit report exclusion period of 7 years plus 180 days from the date you first became delinquent on the account and never, thereafer, were in good-standing until they did the CO, will prevent others from seeing the fact of the repo by simply pulling your credit report.

Thus, the fact of the prior repo and of the still-existing unpaid deb becomes shielded from knowledge of others by way of a credit report inquiry.

However, the unpaid, delinquent debt still exists, and you always run the peril that if a future creditor becomes aware, it could be a reason for denial of new credit.

If you do decide to satisfy the debt, I would advise to first get a full accounting of the net remaining debt.

They almost assurendly sold the vehicle after the repo, which offsets the remaining debt balance you would owe.

Their "settlement" offer may, in fact, constitute payment in full of the remaining debt balance.......

[RonelTek]

Also based on your DOFD of 6/2009 , probably should call them to negotiate an settlement. however do not make any promises or payments without getting everything in writing. even the smallest payments can reset the SOL.  try negotiating for an PFD.  if the debt is settle for less than full, expect an IRS 1099-C

edited. SOL is in 2014 for you.

[newmom24]

RobertEG,

Thanks for the quick, I insightful reply. I have a breakdown from the sale of the vehicle after the repo ($3500 at auction) ... Leaving the balance of $7131. When the settlement letter came I wanted to take advantage of it, but didn't have the funds available at the time. I would like to clear the debt from my report (via PFD) or have it appear as a paid account. At this point, should I wait for the 5 years and then contact Carmax?

Right now, when my credit is pulled by a lender the repo does appear. Prior to the repo the vehicle had been paid on time, but it shows on my credit as:

7 lates all in 2009 -

4x's (7/2009)
2x's (8/2009)
1x (9/2009)

They took possession of the vehicle in September of 2009.

[newmom24]

RonelTek,

Thanks for the update on SOL. How can I go forward with negotiating without resetting the SOL?

[guiness56]

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@RonelTek wrote:

Also based on your DOFD of 6/2009 , You may very well be past the SOL of 5 years  now and probably should call them to negotiate an settlement. however do not make any promises or payments without getting everything in writing. even the smallest payments can reset the SOL.  try negotiating for an PFD.  if the debt is settle for less than full, expect an IRS 1099-C

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With a DoFD of 6/2009 the SOL has not expired yet.  It won't until 6/2014.

[RonelTek]

Ahh Guiness is correct. SOL hasnt expired yet. my mistake, iOS 7 on my ipad has been tricky.  since you are not pass the SOL, you can still negotiate, but they have the upper hand. and you dont want them to sue.