Car loan re-opened after charge off reported

[Anonymous]

I got behind on payments due to losing my job and my car loan was charged off but the vehicle was never repossessed.  They never sold it to a collection agency and retained the debt.  I am assuming they did not finish the charge off process yet because they did not repossess the car?  I just received a settlement from my employment lawsuit and I have been trying to clean up my credit and pay off all old debts.

I called Santander and first made a settlement agreement to pay off the debt.  Then I realized that a 'paid for less than full amount' status was really going to hurt my credit.   So I called them to make arrangements to pay off the account in full.  It looks like my account was re-opened.  I was able to log in and make all the missed payments to get the account to a 'current' status.  I have a statement which shows my account as 'current' and a loan maturity date for 11/5/2018.   Looks like I can make my regular payments until the car is paid off in november.  I paid March's payment and its showing the next payment due in April.

If my car loan has been reopened and showing as current than can the charge off be removed from my credit report?  

[Kree]

Hi Julefenix, Welcome!

I think you might be misunderstanding the purpose of the "charge off' label.  Charge off is used for tax purposes.  A company cannot list an account as a future asset if they do not reasonably assume that the account will be paid as agreed.  So it is removed from the plus side of a ledger by 'charge off'.   This in no way relates to the sale of the account, or the repossession of a vehicle. So when they started accepting payments on the account, it can no longer be a 'charge off'.

However just like a reporting of 'late' the charge off will remain on my report for 7 years.  It would be recommended that you contact the creditor and ask for what we call a "good will deletion". See if they will add a removal of the charge off report as part of your rehabilitation efforts.

[Anonymous]

'So when they started accepting payments on the account, it can no longer be a 'charge off'.'

That's what I thought and I contacted them about removing the charge off and updating my balance and status and they said they would not remove the charge off from my credit report.  I just put in a dispute withe transunion and experian.  I just didn't know if I had a case.  I have a current statement saying my account is 'current' so I wasn't sure how that worked.

[Kree]

I would also suggest that you 'flag' your initial post and in the reason box type "please move to rebuild your credit board', as the people who generally post on that board are more familiar with things like account reportings and charge offs.  You might get quicker/better responses there.