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New Visitor
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Registered: ‎01-30-2008
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Repossession as CO-Signer, how long on report?

I apologize if this has already been discussed, but I wasn't able to find an answer to my particular question. I was a co-signer on a vehicle that was repossessed several years ago. The "owners" of the car informed me they have no intention of paying anything on it. It will just sit on my credit until it is aged enough to come off. So my question is, when will that be? What date do they go by with a repossession? I had hoped it would be 7 years, but the rep with the creditor informed me it could be 10. Any advice? At this rate I won't be approved for anything until the next decade.
Frequent Contributor
Posts: 435
Registered: ‎06-17-2007
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Re: Repossession as CO-Signer, how long on report?

I'm fairly certain that everything except for a bankruptcy will only report negatively for 7-7.5 years. It does however remain on your reports for 10 years, but after the 7 years, reverts back to paid as agreed. It will be on your reports for 7-7.5 years from the date of first delinquency. Thats terrible that you co-signed on a car for someone and they have so little respect for you. Unfortunately, you are considered as responsible for the debt as they are, so if they are sued, you will be standing next to them. You might want to contact the creditor and offer a PFD if you have the funds and really want this offer your report. I would also add in that you co-signed and were unaware that there was an outstanding balance or that they had stopped making payments until it had been repossessed, and try to play the sympathy card. Good luck.
Sept 07 EQ 419

April 2012 EQ- 669 EXP- 680 TU-700= Proud New Homeowner!
Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
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Re: Repossession as CO-Signer, how long on report?

Your "best" recourse would be to the pay the stupid thing in perhaps, a settlement. That way, you wouldn't have to live under threat of lawsuit -- plus, it would "look better" under a manual review for credit products (mortgage, loans, recon for CC denial).

But, then, you'd be out of the $$ AND the vehicle. Unless ... you sue them. You can. It would be breach of contract. And you could get back every cent you paid on the settlement AND possibly (depending on the state) gain some "damages" for the damage to your credit.

I'd not let the goobers whom you selflessly helped get away with *blanking* you so badly. They should have let you know the dire straits they faced and gave you the chance to do something about it before it tanked your credit.

I really hope they're not "friends" anymore. Well, not as if they ever WERE to begin with, I'd imagine.

Best of luck to you!!!

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Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Established Contributor
Posts: 536
Registered: ‎01-24-2008
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Re: Repossession as CO-Signer, how long on report?

[ Edited ]

But, then, you'd be out of the $$ AND the vehicle. Unless ... you sue them. You can. It would be breach of contract. And you could get back every cent you paid on the settlement AND possibly (depending on the state) gain some "damages" for the damage to your credit.

 

I am going thorugh the same thing, I didn't know about the repo until I pulled my credit and saw it there. I was never notifed of anything, they say they sent them but where they sent them was the key, the the incorrect address that the sales rep put on the app, since I was in a hurry and went in signed and left, they didn't have anything but my name and SS# I never gave them a address so he ASSUMED that I lived at the same as the person buying the vehicle.

 

He was always a trust worthy person and I felt I didn't have to worry about it WRONG!!!!!!!!!!!!

What would you need to prove breech of contract in our case?

Message Edited by gdtobefree on 10-01-2008 10:29 AM
Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
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Re: Repossession as CO-Signer, how long on report?


gdtobefree wrote:

But, then, you'd be out of the $$ AND the vehicle. Unless ... you sue them. You can. It would be breach of contract. And you could get back every cent you paid on the settlement AND possibly (depending on the state) gain some "damages" for the damage to your credit.

I am going thorugh the same thing, I didn't know about the repo until I pulled my credit and saw it there. I was never notifed of anything, they say they sent them but where they sent them was the key, the the incorrect address that the sales rep put on the app, since I was in a hurry and went in signed and left, they didn't have anything but my name and SS# I never gave them a address so he ASSUMED that I lived at the same as the person buying the vehicle.

He was always a trust worthy person and I felt I didn't have to worry about it WRONG!!!!!!!!!!!!

What would you need to prove breech of contract in our case?

Message Edited by gdtobefree on 10-01-2008 10:29 AM



While you couldn't provide DEFINITIVE proof (aka, a written, binding, contract, I'm sure), you could provide via summons/discovery a copy of the vehicle registration and insurance AND proof that you paid the debt.

The registration and insurance info would be "proof" (by a preponderance of the evidence) that YOU did not drive the vehicle or gain any benefit of the purchase of the vehicle. Since that would be your "case" -- that in a gesture of goodwill (and with nothing to gain), you co-signed for the defendant in order to act as a guarantor of the loan. The defendant then defaulted (with the implicit agreement to NOT default and to be responsible for the debt) and you had to pay the balance owed to save your credit. Therefore, you are suing for repayment of the balance -- and any damages, if allowed by the court, for the damage to your credit.

'Sides, the average judge is smart enough to know that most times, the co-signer has nothing to gain from co-signing and is simply acting as a guarantor of the loan. And if you can provide "proof" as I've outlined above, you can prove (again, by a preponderance of the evidence) that you had nothing to gain from co-signing.

The biggest problem you face is not getting the judgment but in getting the $$. Apparently, your "friend" was unable to pay for the vehicle (so it was repo'ed) ... so there's no guarantee that they could pay YOU. You can't squeeze blood from a stone.

However, if they live in a state like VA, you can have the courts force a sale of their property to pay the judgment. Of course, again, they'd have to have SOME assets in order to do that.

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Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
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Re: Repossession as CO-Signer, how long on report?

[ Edited ]
Gdtobefree: I forgot to ask -- how much $$ are you talking about? And what state?

States put a cap on the amount of money you can sue for without counsel (AKA, small claims court). You might be best served in contacting a lawyer if the amount you want to sue for is more than the typical cap ($2500-5K).

ETA: Also, your time for filing a suit would be limited by the same SoLs that we cite here. In order to know what that SoL would be, we'd need to know your state.
Message Edited by Wonderin on 10-01-2008 12:47 PM

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Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Repossession as CO-Signer, how long on report?

cadavis0609 wrote:  I'm fairly certain that everything except for a bankruptcy will only report negatively for 7-7.5 years. It does however remain on your reports for 10 years, but after the 7 years, reverts back to paid as agreed. It will be on your reports for 7-7.5 years from the date of first delinquency.

 

All negative closed items remain on your CR for 7 - 7.5 years from the DOFD.  They do not revert back to be in good standing.  The only things that would cause an account to return to good standing would be an open account with lates.  After the lates fell off, each in 7 years, then it would remain for 10 years.

 

If a vehicle is repoed then CO, the charge off will remain, whether paid or not.

Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007

Re: Repossession as CO-Signer, how long on report?

The moral of the story is to never co-sign for anyone for anything.  Front them the money if you really want to help.  But then again, I imagine the OP realizes this...

 

The repo might be out of SOL, in which case the creditor can't sue.  And if it's several years old, it's probably not hurting your credit that much.  It should come off in 7 to 7.5 years from the date of the first missed payment.

 

So it may or may not be worth pursuing damages.

- - - -
in a credit-scoring postnuclear Stone Age...
Established Contributor
Posts: 536
Registered: ‎01-24-2008
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Re: Repossession as CO-Signer, how long on report?

I haven't paid anything on it, the amt after the sale owed is 11753.00 beyond small claims court in La.

 

I would have gladly taken over the notes if I had been told this were happening and had a chance to redeem the vehicle before the auction.

Like I said, the salesperson filled in a address on the app that wasn't mine, he "assumed" we lived in the same house, he could have called me for the correct mailing address to put on the contract.

 

I am trying to remember what the SOL on this written contract is and if it qualifies for the 4 yr sol according to the UCC filings in La.

If anyone has that info handy I would appreciate it.

Epic Contributor
Posts: 20,584
Registered: ‎03-19-2007
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Re: Repossession as CO-Signer, how long on report?

[ Edited ]

Ignoring any SOL and lawsuit implications, which are irrelevant to your FCRA compliance date, the derog must be deleted from your CR 7 years after the date of first delinquency on the account, which is 30 days from the due date of the first payment that was delinquent in the chain of delinquencies that led to the later creditor action.  The only FCRA exception would arise if the repossession led to a legal court judgmemt, but that does not appear to be your situation.

Subsequent activities after the DOFD do not govern its deletion from your CR,

Message Edited by RobertEG on 10-04-2008 11:52 PM
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