charge off vs. paid collection

[gotitup]

I recently inquired about obtaining a used auto loan with a credit union that is showing a charge off on a previous account in my name.  The account in question has been settled with the collection agency and no longer appears on any of the 3 reporting agencies, however the credit union has told me this has to be verified in order to close the account and/or resume payment to them (the CU) for the standing balance.  Am i still legally obligated and bound to repay this balance to the credit union even though they repossed the vehicle and my debt was settled through a collections firm?  The account im sure was sold, and the vehcle too. I am meeting with a member representative of the credit unon to verify the legitimacy of this debt and hope to come to some common ground and have their records updated to show it has been settled.  Is it possible this negative record could still affect their decision for a new loan even if it has dropped off?  Please advise!

[Shogun]

No you are not liable for any payments to them.  You settled those charges with the CA they either sold the account to or assigned it to.  That debt is done.  As far as it having anything to do with whether you get the loan or not.  Yes.  They can have an internal record of your dealings with them and deny you due to prior accounts.

[gotitup]

Great! thank you for the reply, much appreciated.  Guess I'll take my TU/689  EQ/672  FAKO/ex744 to an impartial institution in hopes of landing a decent rate.

[AndySoCal]

I wqould take the paperwork form the collection agency showing the account is settled to the CU.  A settled account is a legally paid account but for less than full balance.. They  cannnot make you pay the difference.