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Vehicle Charge-off but Never Repo?? Any Advice....

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Vehicle Charge-off but Never Repo?? Any Advice....

So from reading onine and talking to others, it seems my situation is not a really normal one and I am kinda lost on what to do...

 

I bought a car in 2016 and it was financed with Capital One. I paid monthly for 4-5 months and then unfortunately had a family emergency and a long list of other unfortunate circumstances arise. I had a few 30 - 60 day late payments and then I just wasnt able to pay on the car.

 

The vehicle was considered a charge-off in 2017, but it was never repoed. Capital One would just constantly call asking for payment and then about a year ago I started getting settlement offers. I called and basically asked why the car was never taken and I was told it was because to much was owed on the car and they wouldnt be able to get what its worth and make a profit, so it was a write-off/loss.

 

So I have had the car from Sept 2016, Made 5 payments and that's it.....Still have the car now and it's been 3 years.

 

I have asked Capital One if I paid the settlement off if I would get the title to the car and I was told yes. So could I sell the car and pay the settlement and transfer the Title to the new owner? Will the car ever get Repoed? Will Capital One just continue to call weekly asking for payment?

Message 1 of 7
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Valued Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....

Looks like CapOne doesn't want the car due to depreciation in value, so they will just continue to try and collect -- maybe even sue you at some point so long as the debt still falls within your state's statute of limitations.

 

My advice is that you take the settlement if you are able to pay the amount they are asking for and be done with it.     Depending on the laws in your state, you may never be able to get rid of the car (legally) without the title - and trust me, that will be a whole new headache.  Once you have the title, you own it -- so it won't be repoed after that.      Keep in mind --  you'll have to file taxes (Form 1099-C) on the difference (settlement vs. original amount owed).   Cap One will send you a 1099-C at the end of the year.   This may or may not affect how much you will owe the IRS depending on other tax-related factors. 

 

I went through this myself with a different auto loan "company".   I had the car for 10 years - hadn't paid a dime after the 1st year -  they stopped contacting me after 2 years - mainly because that loan co. was predatory anyway and was ultimately fined heavily in a 2014 class action lawsuit, so I kinda got lucky (part of their settlement was to remove incorrectly reporting accounts from the bureaus -- mine was one of them - removed and never re-reported).  Anyway, the time came that I needed to get rid of the car because it would just cost too much to fix / maintain it.  I live in NJ and the laws here make it impossible to dispose of a vehicle without the title -- I literally just wanted to junk it and couldn't even do that.  So I contacted the loan company, offered a settlement amount just slightly above the blue book value, they accepted (I guess a few hundred bucks was better than nothing at that point);  I paid, they sent me the title, I got rid of the car - sold it for scrap and made about $400 from that.

 

CapOne is not a predatory lender - so it's very possible they'll eventually come for you legally if you don't take care of the debt.  

 

 

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Message 2 of 7
Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....

Is it possible to sell the car, take those funds and pay the settlement, then get the title and transfer it to the new owner??

 

I have had a few people I work with interested in buying it, but I never sold it due to not knowing all the rules/details of my situation.

 

Seems like as long as they were fine keeping it in the garage or stored for a few days until the title came everything would be ok...Right?

Message 3 of 7
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Valued Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....


@firemartinez1980 wrote:

Is it possible to sell the car, take those funds and pay the settlement, then get the title and transfer it to the new owner??

 

I have had a few people I work with interested in buying it, but I never sold it due to not knowing all the rules/details of my situation.

 

Seems like as long as they were fine keeping it in the garage or stored for a few days until the title came everything would be ok...Right?


 

Ehh...  I guess.     If you have a buyer that doesn't mind giving you the money without receiving a title in return (not a very smart buyer, IMO)... then sure.    Get an agreement in writing from CapOne first confirming the amount of the settlement and that the title will be issued upon receipt of payment -- just to cover yourself and your buyer.   You don't want to pay CapOne with the buyer's money and then all of a sudden you don't receive the title because there is some extra processing fee or some nonsense like that...  make sure the amount you agree on is all that is needed to obtain the title.    Also find out how long it will take them to send you the title... your buyer has to be willing to wait that long...   

 

  

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 10/01/2019: EX 747 ✦ EQ 728 ✦ TU 756
Current FICO 9s | 10/01/2019: EX 765 ✦ EQ 765 ✦ TU 758
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.8 years not incl. AU / 2.11 years incl. AU
My AoOA: 6.8 years not incl. AU / 8.8 years incl. AU
Report Status: Clean

Tending my Garden til 2/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 4 of 7
Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....

Isn't it the same thing as if any other bank had the loan/title?? You still have to get the money from the buyer, pay your bank and then wait on the title.
Message 5 of 7
Valued Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....

In theory, sure. But you're dealing with a defaulted loan/ debt settlement - not the payoff of a loan in good standing.

It should work out fine.. I just recommend you cover yourself with something in writing - just to be on the safe side.

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 10/01/2019: EX 747 ✦ EQ 728 ✦ TU 756
Current FICO 9s | 10/01/2019: EX 765 ✦ EQ 765 ✦ TU 758
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.8 years not incl. AU / 2.11 years incl. AU
My AoOA: 6.8 years not incl. AU / 8.8 years incl. AU
Report Status: Clean

Tending my Garden til 2/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 6 of 7
Contributor

Re: Vehicle Charge-off but Never Repo?? Any Advice....

Appreciate all the insight and help!
Message 7 of 7
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