topic How to handle this Santander charge off? in Rebuilding Your Credit

How to handle this Santander charge off?

vertekal — Fri, 01 May 2015 19:36:18 GMT

Short story: I have a $4000 charge off, DOFD 1/2014.

Long story ....

In Aug 2012, I bought a used car for around $13,500 that was financed thru Santander, paying around $350/mo.

In Sept 2103, the car was totaled. I did not have GAP coverage. After insurance paid their part, I was left owing $4000 to Santander. Also, to the best of my knowledge, I never received anything from Santander (besides my monthly statement) after I quit paying.

It looks like the DOFD is 1/2014, which is when the first 30 day late shows up on my EQ report. I had no late payments prior to this. Additionally, it shows that I have a 60 day late (2/2014) and NINE 90 day lates (3/2014 thru 12/2014). After that, it's listed as a charge off.

I currently don't have a large chunk of money ($2000+) to offer a PFD or to just PIF.

As far as I'm aware, this is within the SOL.

I'd appreciate any advice on how to make this look a little better on my credit reports.

Re: How to handle this Santander charge off?

gdale6 — Fri, 01 May 2015 19:43:26 GMT

@vertekal wrote:
Short story: I have a $4000 charge off, DOFD 1/2014.

Long story ....

In Aug 2012, I bought a used car for around $13,500 that was financed thru Santander, paying around $350/mo.

In Sept 2103, the car was totaled. I did not have GAP coverage. After insurance paid their part, I was left owing $4000 to Santander. Also, to the best of my knowledge, I never received anything from Santander (besides my monthly statement) after I quit paying.

It looks like the DOFD is 1/2014, which is when the first 30 day late shows up on my EQ report. I had no late payments prior to this. Additionally, it shows that I have a 60 day late (2/2014) and NINE 90 day lates (3/2014 thru 12/2014). After that, it's listed as a charge off.

I currently don't have a large chunk of money ($2000+) to offer a PFD or to just PIF.

As far as I'm aware, this is within the SOL.

I'd appreciate any advice on how to make this look a little better on my credit reports.

Settle it.

Re: How to handle this Santander charge off?

vertekal — Fri, 01 May 2015 20:16:36 GMT

Should I aim for a certain percentage? Or ask what they can offer me?

How will my scores look if it ends up being marked as 'settled for less' or whatever the phrase is?

Re: How to handle this Santander charge off?

RobertEG — Fri, 01 May 2015 21:12:54 GMT

Creditors will often either refer to a debt collector for collection assistance after a charge-off, or recoup a bit more of their loss by selling the debt.

in either event, the debt colelctor can report a collection, making matters worse.

It is often beneficial to try to obtain some agreement before a debt collector beocmes involved or the creditor sells the debt.

You can try to negotiate a settlement for less or a payment plan, with the agreement that they will not refer to collection provided you continue to make the agreed payments.

Re: How to handle this Santander charge off?

gdale6 — Fri, 01 May 2015 21:14:51 GMT

@vertekal wrote:
Should I aim for a certain percentage? Or ask what they can offer me?

How will my scores look if it ends up being marked as 'settled for less' or whatever the phrase is?

This is still within SOL in most states, its a written contract and there may even be more statutes on car repos in your states UCC. This means they can still take you to court and get a successful judgment. You are going to have to aim 75% or more of whats due in an offer to settle. If you cant settle it in full I would not even fool with it until it has passed the SOL. Fico could care less whether its paid in full or settled for less its the fact that it happened that matters to Fico.