topic Re: CA Not Reporting Repo.. What to do? in Rebuilding Your Credit

CA Not Reporting Repo.. What to do?

SR23 — Mon, 18 Jun 2012 23:45:57 GMT

Hi all,

Here's the situation: I had a car repoed back in December 2010. Chase sold the vehicle at auction for about half the note amount, leaving me with a 7k balance. Almost immediately, they sold the debt to Allied Interstate, who at first called me constantly and sent letters. Now, I get no phone calls, and letters offering a settlement agreement from time to time for about half. The strangest thing, though is that Allied Interstate has never reported this to any of the CRA's. I know it was sold because Chase is showing a charge off with a zero balance. I'd like to get this taken care of, but don't have 3k to pay these people. I'm also afraid to contact them, because I don't want it to show up on my CR. I'm wondering if they have my correct SS#? I'd like to take a chance at DV'ing them, but can't since its not on my CR. I'm looking to raise my score a bit to apply for a mortgage in about a year or so. Any suggestions? Thanks in advance!

Re: CA Not Reporting Repo.. What to do?

SR23 — Tue, 19 Jun 2012 21:29:34 GMT

Anybody? Any ideas?

Re: CA Not Reporting Repo.. What to do?

pizzadude — Tue, 19 Jun 2012 21:37:03 GMT

First thing I would do is check the statute of limitations for your state of residence to know where you stand in case the CA decides to file a lawsuit. If it isn't reporting right now I wouldn't do anything until you know about the SOL.

Re: CA Not Reporting Repo.. What to do?

SR23 — Tue, 19 Jun 2012 21:39:36 GMT

I'm in PA, so the SOL is 4 years. This would be calculated from the delinquent payment leading up to the repo, I'm assuming? In that case, it would be November 2014.

Re: CA Not Reporting Repo.. What to do?

RobertEG — Tue, 19 Jun 2012 22:31:48 GMT

There is NO requirement that a debt collector must have reported to a CRA before the consumer can request debt verification.

Any DV sent to a a debt collector prior to 30 days from date of dunning notice invokes the cease collection bar of FDCPA 809(b).

Credit reporting is only relevant as to constituting a date that triggers the requirement for dunning notice.

The reporting of a repo has kinda murky credit report exclusion requirements. Repos are not specifically listed under FCRA 605(a) as one of the items that has its own, specific CR exclusion period (i.e, BKs, judgements, tax liens, or a collection/CO), and thus would appear to fall by default under the "catch-all" provision of section 605(a)(5), which applies to "any other adverse item of information." That would require exclusion after 7 years from the date of the repo.

However, the FTC has issued an (admittedly non-binding) opinion that repos fall under the same provisions as a charge-off, and are thus covered under FCRA 605(a)(4) and 605(c), bringing the DOFD on the OC account into play as the relevant date. Their rationale is that FCRA 605(c) refers to accounts "charged for profit or loss, or subjected to any similar action." In their opinion, a repo qualifies as a "similar action" that places it under section 605(c), and thus affixes 7 years plus 180 days from DOFD as its relevant exclusion date. You might thus have a case for using the DOFD on the OC account as the date governing CR exclsuion, and by inference, also as the date they could have first brought a "cause of action," and thus also trigger the earlier running of your state SOL.

See "40 years of Experience with the FCRA, An FTC Staff Report, 7/2011."

Re: CA Not Reporting Repo.. What to do?

SR23 — Tue, 19 Jun 2012 22:42:56 GMT

Thanks guys. So should I take the chance of DV'ing them? I just don't want them to remember me all of a sudden and realize they're not reporting..

Re: CA Not Reporting Repo.. What to do?

pizzadude — Tue, 19 Jun 2012 22:43:33 GMT

@SR23 wrote:
I'm in PA, so the SOL is 4 years. This would be calculated from the delinquent payment leading up to the repo, I'm assuming? In that case, it would be November 2014.

I would assume that the SOL would probably start at the DOFD, similarly to the CRTP. If you aren't prepared to make them a settlement offer at this time, I wouldn't advise you to do anything right now in light of the fact that they aren't reporting it. As Robert mentioned they could certainly report it in the future, but unless you are going to make them an offer to pay I just wouldn't push it right now.

Re: CA Not Reporting Repo.. What to do?

JohnPTEX — Tue, 19 Jun 2012 22:43:52 GMT

That's a tough one! The concern is that if you initiate contact with them it could invoke a sh**storm!! It's tough for me to be apathetic about any possible credit reporting situation, but in this case you may be best served by letting sleeping dogs lie (or is it lay?). Maybe someone can chime in with Allied Interstate specific information where they have just not reported for some reason. Is this common with certain CA's or just hit and miss?

Re: CA Not Reporting Repo.. What to do?

AZHeather — Tue, 19 Jun 2012 22:44:32 GMT

Robert:

Out of curiousity - Is filing the lawsuit considered "collection activity"? If you send a DV are they then barred from being able to sue even if they are still within the SOL? If so, if they never respond to the DV are they then barred from ever being able to sue you?

Re: CA Not Reporting Repo.. What to do?

SR23 — Tue, 19 Jun 2012 22:50:27 GMT

Maybe a better option might be to GW Chase? I'd like to get it removed any way I can. It was a pretty messed up situation, seeing how I was only 41 days behind on the loan. They came to get the car at 3am, on the day (I know this sounds convenient) I was going to bring the account current, since it was payday. I called them up that morning around 9am and offered the payment, and they told me no. I must've caught the guy on a really bad day..

Re: CA Not Reporting Repo.. What to do?

JohnPTEX — Tue, 19 Jun 2012 22:52:52 GMT

@AZHeather wrote:
Robert:

Out of curiousity - Is filing the lawsuit considered "collection activity"? If you send a DV are they then barred from being able to sue even if they are still within the SOL? If so, if they never respond to the DV are they then barred from ever being able to sue you?

Two different laws and no res judicata - one for state based breach of contract and one governed by federal credit reporting - sending a DV letter will not foreclose their ability to puruse their legal remedies in state court (supposing there is in fact a valid contract)

Re: CA Not Reporting Repo.. What to do?

pizzadude — Tue, 19 Jun 2012 22:53:35 GMT

@SR23 wrote:
Maybe a better option might be to GW Chase? I'd like to get it removed any way I can. It was a pretty messed up situation, seeing how I was only 41 days behind on the loan. They came to get the car at 3am, on the day (I know this sounds convenient) I was going to bring the account current, since it was payday. I called them up that morning around 9am and offered the payment, and they told me no. I must've caught the guy on a really bad day..

If you haven't paid it then your odds of GW will be much lower. Chase might still own the debt and they might restart collection activites when you contact them.

I wouldn't touch it if I were you.

Re: CA Not Reporting Repo.. What to do?

JohnPTEX — Tue, 19 Jun 2012 22:54:40 GMT

@pizzadude wrote:

I wouldn't touch it if I were you.

+1 - This is my take on it as of now as well

Re: CA Not Reporting Repo.. What to do?

RobertEG — Tue, 19 Jun 2012 22:56:24 GMT

That issue has come up over and over in pending litigation, and the courts usually hold that the sending of a DV does compel the debt collector to provide debt verification prior to proceeding with the litigation, but does not bar their ability to sue. The judge often grants a period of a month or so for the debt verification to be provided prior to proceeding with the litigation.

Re: CA Not Reporting Repo.. What to do?

SR23 — Tue, 19 Jun 2012 22:56:38 GMT

Thanks for all the advice, everyone. I think I'll take the consensus advice and leave it alone for now. Hopefully it falls off without incident and the CA keeps forgetting to report.