topic Re: Phantom debts in Rebuilding Your Credit

Phantom debts

Thechallange — Sat, 29 Mar 2014 21:19:55 GMT

Uhhh. The high and lows of credit rebuilding...ok last week i was approved for a new auto loan this week after 6 years i get a letter from a DC agency requstting 3k for a auto repo thats due to fall off in 12 months. Im being offered a settle ment of 3k off the 7k balance. Should i take this settlement? Of course i dont have that lump id try to work out a monthly payment. Off debtor was drive financial that i guess was bought out by santander and i was the co-signor. Tell me what to do?

Re: Phantom debts

Anonymous — Sat, 29 Mar 2014 21:25:50 GMT

Check your states Statue of Limitation, you could negotiate it much lower if it's out of SOL. Also keep in mind if you know you won't be applying for any more loans within 12 months, you can just let it fall off.

Re: Phantom debts

gdale6 — Sat, 29 Mar 2014 21:34:10 GMT

@Anonymous wrote:
Check your states Statue of Limitation, you could negotiate it much lower if it's out of SOL. Also keep in mind if you know you won't be applying for any more loans within 12 months, you can just let it fall off.

+1 and if its past SOL, the FOAD letter would be in order if you are not interested in settling it out.

Re: Phantom debts

azguy13 — Sat, 29 Mar 2014 21:35:54 GMT

@Anonymous wrote:
Check your states Statue of Limitation, you could negotiate it much lower if it's out of SOL. Also keep in mind if you know you won't be applying for any more loans within 12 months, you can just let it fall off.

Do not state over the phone that it is your debt. Deal with them through certified mail return receipt requested.

Re: Phantom debts

Thechallange — Sat, 29 Mar 2014 22:05:16 GMT

SANTANDER CONSUMER U
Hide Details30

02/19/2007 $0 02/29/2012 n/a

SANTANDER CONSUMER USA

PO Box 961245
Fort Worth, TX-761610244
(800) 923-9282

Account Number:		Status:	N/A
Account Owner:	Joint Account	High Credit:	$13,734
Type of Account :	Installment	Credit Limit:
Term Duration:	61 Months	Terms Frequency:	Monthly (due every month)
Date Opened:	02/19/2007	Balance:	$0
Date Reported:	02/29/2012	Amount Past Due:
Date of Last Payment:	01/2012	Actual Payment Amount:
Scheduled Payment Amount:	$407	Date of Last Activity:	05/2008
Date Major Delinquency First Reported:		Months Reviewed:	N/A
Creditor Classification:		Activity Designator:	Transfer/Sold
Charge Off Amount:		Deferred Payment Start Date:
Balloon Payment Amount:		Balloon Payment Date:
Date Closed:	01/2012	Type of Loan:	Auto
Date of First Delinquency:	N/A
Comments:

81-Month Payment History

No 81-Month Payment Data available for display.

Re: Phantom debts

Thechallange — Sat, 29 Mar 2014 22:06:16 GMT

This is what it look like on my credit report

Re: Phantom debts

Anonymous — Sat, 29 Mar 2014 23:05:20 GMT

Well your last payment was 01/2012, which means the SOL is out of the question. It looks like you live in Texas and according to this web site, your SOL is 4 years. Looks like settling up may be your best option.

Was 01/2012 really your last payment?

Re: Phantom debts

Anonymous — Sat, 29 Mar 2014 23:07:23 GMT

@Thechallange wrote:

SANTANDER CONSUMER U
Hide Details30

02/19/2007 $0 02/29/2012 n/a
SANTANDER CONSUMER USA
PO Box 961245
Fort Worth, TX-761610244
(800) 923-9282
Account Number:

Status: N/A
Account Owner: Joint Account High Credit: $13,734
Type of Account : Installment Credit Limit:
Term Duration: 61 Months Terms Frequency: Monthly (due every month)
Date Opened: 02/19/2007 Balance: $0
Date Reported: 02/29/2012 Amount Past Due:
Date of Last Payment: 01/2012 Actual Payment Amount:
Scheduled Payment Amount: $407 Date of Last Activity: 05/2008
Date Major Delinquency First Reported: Months Reviewed: N/A
Creditor Classification: Activity Designator: Transfer/Sold
Charge Off Amount: Deferred Payment Start Date:
Balloon Payment Amount: Balloon Payment Date:
Date Closed: 01/2012 Type of Loan: Auto
Date of First Delinquency: N/A
Comments:
81-Month Payment History

No 81-Month Payment Data available for display.

Or was is the 2008 date I just highlighted?

Re: Phantom debts

Thechallange — Sat, 29 Mar 2014 23:20:51 GMT

I live in NJ where the SOL is 6years.....i cosigned for this loan in 2007, by 2008 early 2009 this vehicle was repo. The only reason it took so long to recover the vehicle was because their was no tracking device and the family member lived out of state (bla bla bla) but i know for a fact that recovey was in place in summer of 2008. Last payment was not in 2012. Last payment was in 2007, 2008 at best. Equifax coding tnis account rath well it posting on transunion and experian as delinquent.

Re: Phantom debts

Anonymous — Sat, 29 Mar 2014 23:26:39 GMT

@Thechallange wrote:
I live in NJ where the SOL is 6years.....i cosigned for this loan in 2007, by 2008 early 2009 this vehicle was repo. The only reason it took so long to recover the vehicle was because their was no tracking device and the family member lived out of state (bla bla bla) but i know for a fact that recovey was in place in summer of 2008. Last payment was not in 2012. Last payment was in 2007, 2008 at best. Equifax coding tnis account rath well it posting on transunion and experian as delinquent.

My guess is the sale of the account triggered the 'last payment' status in 2012. I wouldn't even worry about it then. SOL is up or about to be up. I would just ignore it and let it fall off.

ps, not legal advice, just telling you what I would do

Re: Phantom debts

Thechallange — Sun, 30 Mar 2014 02:20:39 GMT

Correction last payment was summer 2008..on the Transunion hard copy of my report its scheuled to be deleted 4/2015.

Re: Phantom debts

Anonymous — Sun, 30 Mar 2014 03:08:00 GMT

@Thechallange wrote:
Correction last payment was summer 2008..on the Transunion hard copy of my report its scheuled to be deleted 4/2015.

It's up to you. You could settle on an amount and pay installments or not contact them and cross your fingers they don't try to sue or don't get around to it. Since they are an out of state collection company they would have to coordinate with someone in your state to sue you. But if they do sue and get a judgement you could be liable for the whole sum plus costs.

Still though, if this is your first letter a lawsuit is usually pretty far off.

Re: Phantom debts

RobertEG — Sun, 30 Mar 2014 09:30:45 GMT

"Ignore it and just let it fall off" is tenuous advice.

"Fall off" relates to the exclusion of any reported adverse information under an account, such as a collection, from continued showing in your credit report.

It thus shields knowlege of the unpaid debt by a simple pull of your credit report, and seeing an unpaid collection, and removes it from continued credit scoring.

If the debt remains unpaid, they can continue to attempt collection by any legitimate means, and if you are asked for disclosure of any delinquent debt by a future creditor, you would be obligated to disclose the debt. Neither credit report exclusion nor expiration of SOL (with a possible exception in two states) discharges the debt.

Re: Phantom debts

Anonymous — Sun, 30 Mar 2014 16:14:11 GMT

@RobertEG wrote:
"Ignore it and just let it fall off" is tenuous advice.

"Fall off" relates to the exclusion of any reported adverse information under an account, such as a collection, from continued showing in your credit report.
It thus shields knowlege of the unpaid debt by a simple pull of your credit report, and seeing an unpaid collection, and removes it from continued credit scoring.

If the debt remains unpaid, they can continue to attempt collection by any legitimate means, and if you are asked for disclosure of any delinquent debt by a future creditor, you would be obligated to disclose the debt. Neither credit report exclusion nor expiration of SOL (with a possible exception in two states) discharges the debt.

Completely agree, but sometimes you have to weigh your options. However "If the debt remains unpaid, they can continue to attempt collection by any legitimate means" this sounds scarier than it actually is. Legitimate means would be a phone call or a letter in the mail. Which you can ask them to stop at anytime and they have to oblige.

Re: Phantom debts

RobertEG — Sun, 30 Mar 2014 17:29:23 GMT

Other legitimate means could also include continued inquiries to monitor your credit report.

A cease communication bar would not remove that continued permissible purpose.