Thought someone might be able to tell me the affect this may have on my credit if any. My loan with Santander Consumer was charged off and my car got repossessed so I was in a situation to actually take their settlement offer to get my car back and the title to it. They are forgiving the left over amount owed and will update my credit report to show that it is paid with a zero balance due. How big of a change might I see for my credit scores or in general how much does this help me credit wise?
The original loan was for over $17k which I took out in Feb 2013 and I still owe $15k so they settled for $8k. I felt this was a good deal so that I no longer have to deal with them and worry about a monthly payment.
Anyone else do this with Santander?
It would still reflect as a charge off on your account. Even with a zero balance. You should request that they remove the charge off, update the original loan as paid on time with settlement balance of zero. If you pay, it is still seen a negative blemish. They know this and still will get 8K out of you.
I am glad that you have something in writing. If they do not follow through, contact the Consumer Financial Protection Bureau. I am sure they have many claims against Santander.
The only thing I will say. Is we did this with Capital One before they became Santander.
We got hit with a tax charge for about $1200.
Long ago, just be on the wary.