Credit Card Center Advertiser Disclosure†
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.