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