topic Re: Charged off as bad debt Profit and loss write-off in Auto Loans

Charged off as bad debt Profit and loss write-off

Hershey45 — Tue, 02 Jan 2024 23:40:50 GMT

I did a Voluntary Repossession and brought back my truck to my local bank. (Because, the truck was having transmission issues and Chevrolet would not come good for it even though it had a full warranty. I did let my Bank know before I brought it back and discussed the issue with a higher-up of my bank. I also have numerous loans out with this bank).

On my credit report, they listed this as a (**Charged off as bad debt Profit and loss write-off**). On my report shouldn't it have said Voluntary Repossession Instead? Why would my Bank Lie? I have 4 other loans there Including a Home loan, Etc.

I've tried contacting them 4 times over the past couple of weeks via Email with No Response at all. Thank You

Re: Charged off as bad debt Profit and loss write-off

sccredit — Tue, 02 Jan 2024 23:44:05 GMT

I don't know if it makes a difference in scoring but IMO I'd rather have it say charged off than repossession.

Re: Charged off as bad debt Profit and loss write-off

Hershey45 — Tue, 02 Jan 2024 23:53:31 GMT

Thank you for your information. Ya, my score went down 140 points. Then a week later raised 75.

Re: Charged off as bad debt Profit and loss write-off

Brian_Earl_Spilner — Wed, 03 Jan 2024 03:34:40 GMT

I don't think they lied. Based on what you stated, the vehicle needed a major repair. A lender will leverage what they can to repair the vehicle whether it's filing a claim through your insurance or trying to get the vehicle repaired under warranty, but if they end up taking a loss on the vehicle and loan, they'll charge it off to balance their books. Based on what you said earlier about Chevy not honoring the warranty, they probably took a good loss on it. The next step will probably be trying to recover the difference either through collections or by selling the debt to a collections agency.