Santander Sold My Loan

[MortgageMinded]

Ok, I've waited over a year, so that the SOL ran out on this debt which was the 9th of this month.   Today I receive a letter from Santander telling me they sold the loan (which means they no longer have collection authority).   They sold it to a company in PA and sent me a DL without the verbiage that this is a time barred debt and they cannot threaten me with legal action. 

SO.... here's my question

1)  The new CA wants the full amount (ain't happening).  I am to assume if I owed say $5k, then I could tell them $500  and we're through.  Right?  How should I approach the new collection company as they have sent me a DL today as well.   I have no agreement with either company and haven't spoken to Santander since the repo.

2) Should I give this a little more time to cool down or should I try to resolve now as things are still in flux.

I know I don't want to pay the 5k and this is the LAST bill I owe.   So any advice that is helpful is appreciated.

By the way I surrendered the vehicle in May 2012 and it went to auction in Oct 2012.   So I believe this puts me out of the SOL as of 10/9/2015.  I would wait until 11/1 to make an offer.

[RobertEG]

Whatever you owe, they can continue to attempt to collect the full amount, even if SOL has now expired.

They just cannot get a judgment ordering you to pay the full amount.

Thus, you cannot tell them what your settlement amount will be.  They have the option of accepting or rejecting.

Debt collectors, even though a debt is outside SOL, realize that circumstances can still occur, such as a consumer being required to discharge a prior delinquent debt as a condition for a mortgage approval, that will necessitate the consumer paying the debt.

It is their discretion whether to settle for less.

They are, of course, taking a big chance in declining a settlement offer that the consumer will never be under a condition that may necessitate payment.

Your call as to whether to play hardball on a lower offer......

[Anonymous]

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@MortgageMinded wrote:

Ok, I've waited over a year, so that the SOL ran out on this debt which was the 9th of this month.   Today I receive a letter from Santander telling me they sold the loan (which means they no longer have collection authority).   They sold it to a company in PA and sent me a DL without the verbiage that this is a time barred debt and they cannot threaten me with legal action. 

SO.... here's my question

1)  The new CA wants the full amount (ain't happening).  I am to assume if I owed say $5k, then I could tell them $500  and we're through.  Right?  How should I approach the new collection company as they have sent me a DL today as well.   I have no agreement with either company and haven't spoken to Santander since the repo.

2) Should I give this a little more time to cool down or should I try to resolve now as things are still in flux.

I know I don't want to pay the 5k and this is the LAST bill I owe.   So any advice that is helpful is appreciated.

By the way I surrendered the vehicle in May 2012 and it went to auction in Oct 2012.   So I believe this puts me out of the SOL as of 10/9/2015.  I would wait until 11/1 to make an offer.

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I would enter negotiations making it clear that this is "old, time barred debt", that you do not consider to be a current obligation, but that you are willing to settle it for (pick a number).

Have they posted it to your reports yet?

[MortgageMinded]

As of this moment it hasn't hit my reports, I know I will need to eventually contact the CRA's with Santander's letter making sure the debt is rolled to "0" balance should they actually contact the CRA.   I assume at this point they will be on my CR in the near future.  I don't what a fair settlement is at this point and if they will actually agree.  Never dealt with this CA and can only hope they are sensible enough to want to settle for a reasonable sum.

To be honest, I just want it gone and if it costs me $1,500 or $2k, it's worth it.   I just want it all in writing.

[Anonymous]

You get leverage for a lower settlement when it is past the SOL.

You get lots more leverage when it is past the 7 year mark and will not be under normal display on your CRs.

I would suggest waiting until it shows up on your CRs under the new CA and then verifying the DoFD to make sure it is the same as the OC.

If you arent going for new credit for an auto loan or a mortgage within the next couple months, I would suggest a slow approach.  If you act quickly, they might assume an easy kill and try to play hard ball.

HTH

[MortgageMinded]

I am looking to app for a mortgage in the 1st Qtr 2016, so this will definitely need to be removed.

I can only hope they report correctly and I will be looking at the DOFD very closely.

Thanks for the advice.  

[MortgageMinded]

Interesting, when my CR's were updated the loan went from late to charge off and the score dropped 15 pts.

[Anonymous]

A repossessed car on a credit report is the kiss of death. You need to settle this so it will not effect your future credit. If you settle this it will show " Charge off repossession paid less than owed on your credit" Now, even with this on your credit report as you repair your credit and build this will allow you to perhaps get a co-signor in the future for a new car loan and go through another lender. I had the same issue with my X wifes car in 09 and paid it in full and they kept it on my credit as a charge off paid in full until last month. I was able to get 3 other car loans as a co with my wife and now I am fine however CC companies will shy away from you with that on your report. 

[MortgageMinded]

AMXBlack, thank you for your comments.   Luckily, at this time I don't need a car.  It will drop off in 4 years.   Here's the thing I was able to get 10 credit cards to date and with decent limits.  I know the original creditor sold my loan to another agency, thus the drop yesterday when they reclassified it to charge-off status.   I am now hoping the new owner of the debt doesn't pop up on my report if they do, I will sink lower still.  I don't think settling with new lender is going to get this changed on the original's accounts anyway.  

To be honest, I don't want another car loan as long as I live.  I receive a car pre-approval through Cap One if I want it for $35k.  Not that I want it.

However, I do want a mortgage and the mortgage company I am working with cares that the amount is $0.  That has happened.  I am waiting for the shoe to drop with the other CA.