Settling with Wells Fargo Dealer Services, any advice or expereince?

[Anonymous]

Hello All,

I have an account with Wells Fargo Dealer Services that I'm attempting to resolve.

The loan was opened in 2011. Fell behind on payments on 4/13. The car was repossessed in January of 2014. It is still showing on my credit report as a balance of $7,441 and still getting updated monthly. 

The Statute of Limitations has passed, so I'm being very careful in how to deal with this. My plan is to work out a PFD with them and offer them 20 cents on the dollar for the debt to be resolved. 

Any and all advice on dealing with a matter like this, especially if dealing with WFDS, would be greatly appreciated. Will update this with progress as well. 

[Anonymous]

Just called to offer a payoff amount. Instead, they are closing the account as paid in full, and I will be getting a tax form to report the amount as a write-off. All without paying a dime. This seems too good to be true! We will see how it all works out.

[RobertEG]

You will pay more than a dime unless you obtain an exemption from the IRS.

By cancelling the remaining debt, they are requried to report the cancelled debt to you and to the IRS via form 1099c, and you may have a tax obligation on the cancelled debt.

Consult a tax expert once you receive the 1099c, and obtain advice on avoiding taxation as income if you were insolvent at time they cancelled the debt.

[Anonymous]

It is what it is. Seems like this is a decent win for me. I was ready to pay in full if need be so I can clear this, trying to apply for a mortgage next year. This way I can apply my savings in other ways. Assuming this all works out as I was told...

[Anonymous]

Has anyone else gotten the charge off PIF update with Wells Fargo? I've been waiting for it to hit my report. Since WFDS reports monthly that I failed to pay, some of CRs have terrible payment percentages, I think EQ is at 75%, TU is at 71%, EQ is at 78%. This is pretty frustrating, as I haven't missed a payment on any other account for almost 4 years. 

Spoke with a CSR from WFDS June 1st. They said it had just been reported on May 30, and that it will take up to 60 days for it to update to the Credit Bureaus. 

Going back to my original question, has anyone had one of these hit their reports yet? If so, what effect did it have? Do the old Fail to Pay marks go away?

As far as disputing the Fail to Pay, is there any way to go about that with the CBs? This account was closed and charged off in Jan 2014, and first DOD was April 2013. I was under the assumption that I couldn't be listed as FTP on a charged off account.

This is my last issue on my reports, other than a 30 day late from 2012 on a personal loan, and one collection from 2015 listed as paid that I'm trying to goodwill.

[RobertEG]

Taking a charge-off does not affect continued obligation for the debt, and does not preclude the continued reporting of deliquency on the debt.

Their voluntary discharge of the debt by cancellation does not mandate removal of any derogs reported prior to discharge.

[Anonymous]

It's a charge off Paid in Full. I tried to pay it off, but since it was past the statute of limitations, they had already started the process.