Rebuilding Your Credit

[sassymomof2]

Hi everyone. I need help. I am trying to position myself to purchase a home in the next year. My current scores are EQ 587 TU 621. I had a car loan with Capital One Auto Finance. I had 3 payments remaining when the engine blew. I put it in the shop and the shop took its time finding me an engine. When the shop called me to pick up the car, they wanted $2500 more than we agreed to citing storage fees. I did not have the money to cover the fees which were more than the repair itself. I called the finance company and explained to them what happened. The rep told me not to make anymore payments until I got the car back. I never got the car back. The last payment I made was August 2007. The remaining balance is $1420 and is now a charge-off reporting a delinquent balance each month. The SOL for written contracts in my state is 10 years. I was just contacted by a collection agency for the balance. They also offered to settle for $428. I do not know who to pay. I'm afraid to pay the OC directly because I was thinking they may change my DOLA to the date the payment is received. The collection agency is not reporting on any of thr cbrs. How should I handle this situation?

[llecs]

I'd send a PFD to CapOne since they still likely own it. They most usually keep ownership of a debt up to the point SOL expires, and they love to sue. If a few attempts at PFDing fail, then ask for a settlement and get it in writing from them before paying.

I'd largely ignore the CA, other than to send a DV. They'll go away in a hurry and a new one will take its place. Then send a new DV for that one too.

DOLA will change no matter what. Ignore that date. It means little and won't impact the length of reporting.

[sassymomof2]

Thanks so much llecs!