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Does Honda financing sell or keep their unpaid charged off debts?

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MountainHiker
Established Contributor

Does Honda financing sell or keep their unpaid charged off debts?

Hi Everyone 

 

I have a 5 year old unpaid charged off car loan with Honda Financing for about $20K. I want to pay them off in one lump sum. But need to go in with as much information as possible.  Some companies will retain their unpaid debt, while others will sell it for a small percentage of the original debt, get a tax break and keep it moving. In your experience does Honda sell or keep their old charged off debts? 

 

Thank you in advance for taking the time to read my post. 

EQ-732FICO,EX-PLUS 740,TU-725FICO
Goal 750 Across

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Message 1 of 8
7 REPLIES 7
Adkins
Legendary Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?

How it's reporting on your credit report should give you an idea if the debt has been sold or is still in house with Honda. 


Last HP 08-07-2023



Message 2 of 8
MountainHiker
Established Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?


@Adkins wrote:

How it's reporting on your credit report should give you an idea if the debt has been sold or is still in house with Honda. 


Hi Adkins

 

It's reporting likes it's the original Honda Finance creditor.  And it updates every month. And there is a balance from after the sale of my vehicle. 

 

What in your opinion does that reflect in regards to if the debt is still with them?

 

I have heard of creditors hiring outside agencies while still retaining control of the old charge off. I'm not aware how Honda handles their old debt.

 

Thanks for any input you can offer.

EQ-732FICO,EX-PLUS 740,TU-725FICO
Goal 750 Across

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Message 3 of 8
Adkins
Legendary Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?


@MountainHiker wrote:

@Adkins wrote:

How it's reporting on your credit report should give you an idea if the debt has been sold or is still in house with Honda. 


Hi Adkins

 

It's reporting likes it's the original Honda Finance creditor.  And it updates every month. And there is a balance from after the sale of my vehicle. 

 

What in your opinion does that reflect in regards to if the debt is still with them?

 

I have heard of creditors hiring outside agencies while still retaining control of the old charge off. I'm not aware how Honda handles their old debt.

 

Thanks for any input you can offer.


Yeah, it could be but it's hopeful it's just them since they are the only ones listed. If you have the money to pay it off, I would call Honda Finance directly and ask to do this. It's already updating every month, so you can't do anymore damage at this point. Once it's paid off and quits updating with a balance, it will help your score immensely. You can think about a goodwill campaign to get the latest removed afterwards. Or if you're bold enough, ask while you're paying off the loan. Remember to get everything in writing, just in case! 


Last HP 08-07-2023



Message 4 of 8
Adkins
Legendary Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?

Side note: Another question is what's the statue of limitations for your state? If you want to pay it off to have it cleared from your account, that's up to you. If it's past the statue of limitations for your state you may not be obligated to do so, and could just let it fall off your reports in a couple more years. Honda Finance probably won't like you though so there's that. 


Last HP 08-07-2023



Message 5 of 8
MountainHiker
Established Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?


@Adkins wrote:

Side note: Another question is what's the statue of limitations for your state? If you want to pay it off to have it cleared from your account, that's up to you. If it's past the statue of limitations for your state you may not be obligated to do so, and could just let it fall off your reports in a couple more years. Honda Finance probably won't like you though so there's that. 


I was living in a different state during the purchase of that car. In that particular state the statue of limitations is 4 years, so I've already met that expiration , but in the state where my Chase credit card was mailed to , I hit that statute of limitations in a few more months. It's tempting not to pay out 22k and try to wait it out. But there's no guarantee the debt won't be sold. I've heard were debts can still be sold even once they're pass the statue of limitations. 

 

 

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Message 6 of 8
Gmood1
Super Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?

Unless something has changed, seven years is the limit on debt like this reporting.

If it were a BK, ten years.

It's your money. Honestly I think you'd be throwing it away at this point. JMHO and experience with things like this in the past.

I had a repo reporting, it was more than what you are stressing over now. At seven years, it was gone never to be seen again. That's been at least 15 years ago when it fell off. 

Unless they are going to remove it completely. There would be no real point in paying it now. It will show paid and still report the last two years as a baddie. 

 

I've had all the baddies at one time or another. BK, Foreclosure, Repo .. you name it. Patience is all you really need at this point. 

 

Good luck, hopefully things will work out in your favor. 

Message 7 of 8
MountainHiker
Established Contributor

Re: Does Honda financing sell or keep their unpaid charged off debts?


@Gmood1 wrote:

Unless something has changed, seven years is the limit on debt like this reporting.

If it were a BK, ten years.

It's your money. Honestly I think you'd be throwing it away at this point. JMHO and experience with things like this in the past.

I had a repo reporting, it was more than what you are stressing over now. At seven years, it was gone never to be seen again. That's been at least 15 years ago when it fell off. 

Unless they are going to remove it completely. There would be no real point in paying it now. It will show paid and still report the last two years as a baddie. 

 

I've had all the baddies at one time or another. BK, Foreclosure, Repo .. you name it. Patience is all you really need at this point. 

 

Good luck, hopefully things will work out in your favor. 


Thanks for the positive feedback Gmood1.

 

We were discussing the legal time limit a lender has regarding ability to seek repayment.  Every state has a statute of limitations.  

 

I'm a little reluctant to call them yet, because it's important to be clear what I really want to accomplish and what they are willing to do if/when fully repaid. Will wait a few more weeks then decide. Might call Chase first. 

EQ-732FICO,EX-PLUS 740,TU-725FICO
Goal 750 Across

NFCU Signature Cash Rewards Visa, Chase Freedom Visa, Wells Fargo Visa Secured
Message 8 of 8
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