Charge Off

[samtheman3409]

Hello, everybody. This is my first time posting on the forums, but I've read through so many threads for over a year now learning from you guys. I've tried to read up on auto loan charge offs and what the right steps would be in tackling it, but I would like some opinions on my particular situation. I have a charge off from 2019 for a lease from Hyundai Financing. Total debt was originally around $7.5k, but the balance has recently been updated to around $4800. I had to pay this for overage of miles plus cosmetic repairs to the car when I turned it in. As of today, I have paid none of it. I tried to in the beginning, had autopay set up, but they never took any money out of my account and didn't notice until they had already put it as a charge off. The status of the account hasn't updated since Feb 2019, but the balance last updated June 30, 2022. Should I still try to pay off this debt? I've had some people (not on these forums) tell me that I shouldn't and wait the 7 years out. My score has increased a good amount since it was first charged off, but some guidance would be appreciated. 

[cashorcharge]

In these times, if you intend on getting another auto loan any time soon, I would do my best to get that resolved versus waiting it out. 

Plus, you never know if that debt would be sold, updated on your CB and trigger negative issues down the road.

If you set up auto-pay for the balance owed and never bothered to make sure they took the money...and didn't notice you had more money in your account than you should...I'd apply that money to your debt to get it behind you.

[samtheman3409]

I figured paying it off would be my best bet. At the time of turning in the car, I was really irresponsible with my finances and scores. So I wouldn't bother looking at either. Should I try paying off the full amount or work out a potential deal with the lender? I'm actually not sure if it was already sold to a CA either. 

[cashorcharge]

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@samtheman3409 wrote:

I figured paying it off would be my best bet. At the time of turning in the car, I was really irresponsible with my finances and scores. So I wouldn't bother looking at either. Should I try paying off the full amount or work out a potential deal with the lender? I'm actually not sure if it was already sold to a CA either. 

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If the balance owed is still posting as Hyundai Finance...a call to them will give you the answer you need about it being sold.  They can also confirm the amount you owe.  If...If...you have the money to pay it off...great.  If you don't and need to work something out, I would be surprised if they agreed to that again considering the previous default...but it's always worth asking.  Start by giving them a call...