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How to handle Auto loan that has been "charged off"?

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bsl
Established Member

How to handle Auto loan that has been "charged off"?

Hello all!

 

I had an auto loan that went south a few years back (in 2010),

the account now shows on all my credit reports as "charged off" or "charged off as bad debt" with a balance left on the account of $3800.00

 

At this point, is there any way to negotiate with the the finance company (world omni) to pay in exhange for deletion?

 

thank you



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Current Score: EX 05/04/14 (MyFico): 610
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Message 1 of 8
7 REPLIES 7
gdale6
Moderator Emeritus

Re: How to handle Auto loan that has been "charged off"?



@bsl wrote:

Hello all!

 

I had an auto loan that went south a few years back (in 2010),

the account now shows on all my credit reports as "charged off" or "charged off as bad debt" with a balance left on the account of $3800.00

 

At this point, is there any way to negotiate with the the finance company (world omni) to pay in exhange for deletion?

 

thank you


First thing to do is verify that its past your states SOL. You dont want to poke a bear if its within the SOL as you could be sued for the entire amount.


Message 2 of 8
bsl
Established Member

Re: How to handle Auto loan that has been "charged off"?

I am a little confused, what does SOL mean?

 

Thanks



Starting Score: EX (MyFico): 567, EQ (MyFico): 575, TU (MyFico): 597 04/04/14
Current Score: EX 05/04/14 (MyFico): 610
Goal Score: 750+ Across the board


Take the myFICO Fitness Challenge
Message 3 of 8
gdale6
Moderator Emeritus

Re: How to handle Auto loan that has been "charged off"?


@bsl wrote:

I am a little confused, what does SOL mean?

 

Thanks


SOL is the Statute of Limitations, they are different in every state. These govern a creditors timeline to be able to obtain a money judgment.

Message 4 of 8
myjourney
Super Contributor

Re: How to handle Auto loan that has been "charged off"?

SOL=statues of limitations

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 5 of 8
myjourney
Super Contributor

Re: How to handle Auto loan that has been "charged off"?


@gdale6 wrote:

@bsl wrote:

I am a little confused, what does SOL mean?

 

Thanks


SOL is the Statute of Limitations, they are different in every state. These govern a creditors timeline to be able to obtain a money judgment.


You beat me good job Smiley Wink

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 6 of 8
bsl
Established Member

Re: How to handle Auto loan that has been "charged off"?

 


@gdale6 wrote:

@bsl wrote:

I am a little confused, what does SOL mean?

 

Thanks


SOL is the Statute of Limitations, they are different in every state. These govern a creditors timeline to be able to obtain a money judgment.


 

In my case (FL) I am still within SOL.. guess I wont poke the bear and let it dissapear slowly...   '

 

 

Thanks




Starting Score: EX (MyFico): 567, EQ (MyFico): 575, TU (MyFico): 597 04/04/14
Current Score: EX 05/04/14 (MyFico): 610
Goal Score: 750+ Across the board


Take the myFICO Fitness Challenge
Message 7 of 8
RobertEG
Legendary Contributor

Re: How to handle Auto loan that has been "charged off"?

Personally, I would not let the SOL status control a decision to wait.

Taking a CO is usually the first step in what can become escalation of credit report damage.

They can, at any time, assign to a debt collector or sell the debt to attempt to recoup a bit more of their loss.

You are then likely to have a collection reported, and if the debt was sold to them, no more ability to offer a PFD to the OC to attempt deletion of the CO.

Your PFD efforts would then shift over only to the debt collector.

 

If able to make a PFD offer, you would also be able to pay the debt should they initiate legal action.

I would still consider sending a PFD.  If accepted, it would be a triple win....... satisfaction of the debt, deletion of the charge-off, and avoidance of a collection.

 

 

Message 8 of 8
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