topic Re: CAP1 Auto CO/settlement letter HELP! in Rebuilding Your Credit

CAP1 Auto CO/settlement letter HELP!

Anonymous — Mon, 24 Jul 2017 23:56:52 GMT

Hi all. I have a CAP1 Auto CO from 2014. The credit report shows that the balance is $848. I've never received anything showing me how they came to this amount once the car was sold at auction, never received anything stating I had an opportunity to pay to get the car back, etc. Absolutely nothing. I know of the amount from my report. My question is this.... they sent a letter this year stating I could pay $37 to be considered "Paid in full" if paid by 4/2017. The problem is, here it is July and I'm just now getting this letter. So.... do I call them and ask for this expired deal? Is it really too late to accept? Or do I just DV them in the hopes of finding out how they came to this amount owed? What needs to be done here? Thanks in advance for any input!

Re: CAP1 Auto CO/settlement letter HELP!

RobertEG — Tue, 25 Jul 2017 00:50:11 GMT

You are most likely covered under state statutes or regs that control required notice to the consumer of the reconciliation of sale of the vehicle and net remaining debt.

Contact the state agency that regulates the repo and notice requirments for sale and net remaining debt for details and requirments.........

Re: CAP1 Auto CO/settlement letter HELP!

Anonymous — Wed, 26 Jul 2017 12:08:23 GMT

So after discussing this last night, wouldn't it be much easier and quicker to try to settle? CAP1 Auto doesn't PFD, but if they're willing to take a portion for "paid in full" status, I could possibly pay now and finally close this CO on my report sooner rather than later. I guess my question is, how do I go about making an offer without resetting the SOL?

Re: CAP1 Auto CO/settlement letter HELP!

Anonymous — Wed, 26 Jul 2017 14:30:16 GMT

I can give you a little insight into this particular issue because I went through it recently.

First you would more then likely be protected by laws in your jurisdiction that requires certain timely notices to be sent. The problem is if you moved or relocated and they sent the notice to the last address on file they could have that tossed as far as I know because they would have enough for burden of proof.

So onto the actual settlement. When you call the first thing they say on an older account is that it is old and they will not sue you for the debt. They did this EVERYTIME I called on a recorded line. This is good because once they have stated their intention it would be unfair practice to change that. As far as your reporting the account will remain there until the account ages off. It will still show as a derogatory account with something to the effect of paid in full after closing. And the repossession mark will remain. This is why I would go and see if they have the documents that are required for your state.

If all else fails settling it is still good. I received a very nice score bump from them submitting a zero balance especially on my mortgage scores which was where I needed it. I continue to send GW letters to the EO every other month or so in hopes someone will hear my plea but no dice yet!

Re: CAP1 Auto CO/settlement letter HELP!

Anonymous — Wed, 26 Jul 2017 14:38:42 GMT

When you say, "This is why I would go and see if they have the documents that are required for your state"... what exactly are you referring to? I've never had a CO, much less a repo, so I've never been through this before and want to be really clear as to who I need to call and what to ask for.

Did you settle for less than the amount or PIF? I'm hoping to buy a house next year, but worried how "settled in full" may appear under manual review.

Re: CAP1 Auto CO/settlement letter HELP!

Anonymous — Wed, 26 Jul 2017 14:52:59 GMT

I settled for less then full. No issues with our loan officer. They were more concerned about them being closed. Also since your balance is under $1000 right now you may even be ok.

By documentation I am referring to what your state deems is necessary to be communicated during a repo. This can be found in the law for your state so what I did was looked up the statute for repossession in Pennsylvania and went from there. There were different timelines and documents that needed to be sent to me. I never received them but they were never forwarded from my old address and they had documented proof. This made the repo valid legally so I settled it.

Re: CAP1 Auto CO/settlement letter HELP!

RobertEG — Wed, 26 Jul 2017 17:39:02 GMT

When the creditor repossesses a vehicle, they are permitted under state law to then sell the vehicle if not redeemed by the consumer within a set period, which is usually very short.

State law/regs then require the creditor, after sale of the vehicle (usually at auction), to notify the consumer of the remaining, net indebetness after the sale.

That is the remaining, unpaid amount of the loan minus the amount they sold the vehicle for.

The state agency charged with regulation of repo statutes/regs can provide you details on creditor requirements.

Until you know the remaining, net debt after their disposal of the repo'd vehicle, you do not know what to then pay to discharge the debt.