11-10-2011 12:37 AM
Okay, here is the worse thing on my credit, Any suggestions on how I can fix this. It was a car I had that got repossessed from me. There is still a balance $11,938.00 that they say I owed since the car was sold much lower than what I still owed. I just received a letter from another company asking me to pay and to see if I qualify for a hardship lower payment. I don't have the letter in front of me at the moment to add more info about it.
Vehicle Loan Account
American Honda Finance
Status as of Feb, 2008
Date opened Dec, 200
Date of last activity Sep, 2007
Date closed Dec, 200
Loan type Automobi
Largest past balance $24,36
Account Type Installment Account
Account holder Joint Accoun
Scheduled Payment Amount $50
Industry Credit Unions and Finance Companies
Credit Unions and Finance Companie
Charged off as Bad Deb
30 days late – 0 time
60 days late – 0 time
90 days late – 0 time
The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.
Contact Information [?]3625 West Royal La
Irving, TX 75063
11-10-2011 02:02 AM
My first impression is not directed so much at "fixing" past damage, but rather at avoiding future damage.
You still have an unpaid debt.
I am a bit surprised that the OC account progressed to the stage of a charge-off without the prior reporting of monthly delinquencies, but nonetheless, you do have a CO reporting, as well as the repo. They all cumulatively afftect your score.
The debt is still unpaid, so you have two looming concerns...... the debt being referred to a debt collector and thus the reporting of a collection in addition to the already reported adverse items, and additionally the threat of legal action for recovery.
I would focus on those two items before focusing on removal of the old shrapnel.
What is the statute of limitations for debt in your state? Has it expired? Have you heard rumblings for any debt collectors? Did the party who recently contacted you send you a dunning notice, and thus assert their position as a debt collector?
More info would be needed about the current status....
11-10-2011 05:34 AM
From my understanding Texas has a 4 year SOL and the first delinquent payment was October 2007 so the SOL was October 2011. That is if I understand this all correctly. Once I arrive at work in an hour or two I will add the information I have from the letter I received from another company to give more insight.
11-10-2011 07:01 AM
The letter I received was from Northstar Location Services, LLC
Saying the balance is $10,934.37
The above account has been referred to our office by Honda Finance Services for collection. Your account is listed as delinquent with a total amount due of $10,934.37. In addition, we are offering a hardship settlement in the amount of $4,373.75. To find out if you qualify, contact our office at 1-866-677-2551 to discuss this payment option with one of our trained representativies.
Federal law requires that we inform you this communication is from a professional debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. This collection agency is licensed by the Department of Consumer Affairs, the City of New York License # 1179143.
Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt to be valid. If you notify this office in writing within 30 days of receiving this notice that you dispute the validity of this debt or any portion thereof, this office will obtain verification of the debt or a copy of judgment and a copy of such verification or judgement and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from the current creditor.
11-10-2011 08:45 AM
It's a dunning letter from a CA who is also offering a settlement. If you can take it, I'd jump at it. You might have tax consequences on the balance, but you'd save thousands nonetheless. I'd send them a modified PFD...pay-for-not-reporting where you'd get it in writing from them agreeing that you'd pay it in exchange for not reporting.
Don't call them. Keep everything in writing.
11-10-2011 09:06 AM
Thank you for your advice. I will try to come up with a way to pay it but it's been really hard for me right now. This item is the one that is really hurting my credit the worse.
11-10-2011 09:35 AM
If you haven't paid since the repo, and it's been 4 years, then the only thing to worry about is the CA reporting and increased balance due to interest. Settling it might stop its reporting if done soon. However, many CAs are open to a PFD-arrangement and it might be possible to get a PFD in the future if you wanted to wait.
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.
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.