01-22-2013 11:39 AM
I've been a lurker around here for awhile. I need some advice. For the last year I have worked very hard to clean up my credit, now I'm down to 1 biggie. My Toyota truck was repoed in 2009 and according to them (and showing on my CR's) I have a balance due of $8469. The status being reported is "charge off".
This debt is still owned by Toyota, however they are using a collection agency to collect for them. I spoke to the collector earlier and he offered a few different settlement options. I was hoping to get some advice on what to counter offer with. This debt is supposed to fall off my reports in late 2015, but I've been afraid of a judgement against me before then.
6 payments of $846 or
3 payments of $1411 or
1 payment of $3387
01-22-2013 11:54 AM
You're looking at around a 40% settlement, which seems decent, especially if you are still within the statute of limiations as you stated.
Regardless of what amount you settle on, I'd recommend also negotiating for removal of the collections from your credit reports as a condition of payment.
01-22-2013 12:03 PM
Thanks for the response. To be honest with you I hadn't even considered negotiating for a PFD. I just assumed a big company like Toyota Financial would tell me to pound sand. Have you ever heard of anyone having success with that through TFS?
01-22-2013 12:46 PM - edited 01-22-2013 12:47 PM
You'll have to negotiate with TFS on the original tradeline reporting, but perhaps you can at least get the collection removed ?
01-22-2013 02:12 PM
01-22-2013 02:28 PM - edited 01-22-2013 02:28 PM
TFS is the only one showing on my CR. The CA doesn't own the debt. Any offer I make to them has to be approved by TFS.
My thinking is they should accept less considering how low they started at.
Well it's good that the CA isn't reporting separately, that would ding your FICO score again.
I'd check into the Statute of Limitations for your state, for written contracts, to find out for certain if you're still in SOL. You could possibly leverage this to negotiate a better deal.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.