Back in 2021 i did a VS on my car. It had about 6-7k left on the loan.. I had the loan through ally and it briefly reported as a VS then one day i got a letter in the mail from ally saying that the loan was paid off(i didnt pay it). How bad is it hurting my score having it say VS on it and should i call Ally and see if they can change it?
the balance on it is reporting $0, right?
the car was enough to cover the remaining balance, so when they sold the car, they paid off the rest of the loan
Did you receive any lien satisfaction letter from Ally in the past? The $0 balance could indicate Ally sold the debt after selling the collateral and wrote off the remainder. If they sold the debt, it could mean a JDB owns it and hasn't started a collection process yet. You need to start investigating when and how the balance was settled and what the statute of limitations are in your State.
Be thankful they got enough to have the loan showed as paid when they auctioned it. Could have been worse.If they didnt get enough to pay off the loan. You'd still have a balance and have to pay for it still. Its done. Move on. Repo will stay. The comments is in your favor. Paid.
@FireMedic1 wrote:Be thankful they got enough to have the loan showed as paid when they auctioned it. Could have been worse.If they didnt get enough to pay off the loan. You'd still have a balance and have to pay for it still. Its done. Move on. Repo will stay. The comments is in your favor. Paid.
The OC would also report closed and paid/$0 balance if they sold the debt while still reporting the negative history however this debt is from 2021/2022 and within SOL. If I were @Birdie1 , I'd be concerned how Ally is considering the loan paid. If they did indeed recoup the entire debt from collateral auction and there is no deficiency debt, there will be a paper trail and the OP would be entitled to it... which would serve the OP well to make sure that is safely on file. Ally still has a responsibility to provide a record of the sale in writing including the amount of the debt prior to the sale of the collateral, the amount the collateral was sold for, the remaing debt (if any) and the surplus (if any) that would be returned to the OP. There is no harm in asking Ally for an accounting of the reposession and disposal.
Worse case scenario... If Ally is considering this account closed because a CA or worse, a JDB bought the remaining balance, Ally would still report it paid and closed like they are .... but the debt is still within the SOL for whoever might be the current debt owner and the OP could be at risk of a being served with no warning.
The fact that this is within SOL and exactly how Ally closed and is reported it paid without any further information raises the hair on the back of my neck.
Plus, the OP would want to know if there is a 1099-C coming their way. Unless Ally provides one or one isn't required.. If there wasn't a 1099-C filed, the debt still may be out there.
I don't know if I would advise moving on just yet.
Unless all this means nothing if the letter the OP recieved is a record of the sale and accounting.
@Birdie1 wrote:That's the thing. They never said they sold the vehicle, but I got a letter in the mail from ally stating the loan was paid in full So I don't know what they did but I was too afraid to contact them since I have it in writing that it's paid in full I didn't wanna mess anything up
@Birdie1 Do you still have anything with the VIN on it?
PM the VIN if you do. I'll track the sale and title.
