What to do about VW auto repo? Please help!

[nitrov]

Hi all,

About 5 years ago, I had a car repossessed from VW Credit which was a lease. I had lost my job, the car became too expensive, and a friend was sub-leasing it from me but it stayed in my name. He stopped paying on it and I didn't find out until it was already 90 days late and I already had purchased another car for myself. Volkswagen wanted to charge me an arm and a leg to terminate the lease early. After they repo'ed it, they said I owed them the sum of the lease payments PLUS the theoretical purchase price of the car once the lease was finished, which totaled over $35,000 (more than the car was worth). They made a lot of money back on the car when it sold at auction, so they're truly trying to get almost $70k for a car worth about half that.

Now it's been over 5 years. I haven't paid them anything because their settlement offers are always 5-figures ($18k or so). I still get calls from collection agencies regarding the account. It's still on my credit report and sometimes they re-post it there making it look like a new debt when it's already old. What can I do in this situation? I'd love to get them off my back and out of my life!

Please help! Thank you!

[ds3]

The original date of delinquency is all that matters. It may look like they post it as a new debt, but typically at 7 years it will drop off your credit reports. That being said, if they want to, they have every right to sue for a judgment, which they would most likely win. At that point, they would hire an agency (local Sheriff, for instance) to sieze whatever they can from you to satisfy the debt.

Not good news, but you asked, and you deserve an honest answer.

[nitrov]

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@ds3 wrote:

The original date of delinquency is all that matters. It may look like they post it as a new debt, but typically at 7 years it will drop off your credit reports. That being said, if they want to, they have every right to sue for a judgment, which they would most likely win. At that point, they would hire an agency (local Sheriff, for instance) to sieze whatever they can from you to satisfy the debt.

Not good news, but you asked, and you deserve an honest answer.

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I appreciate you taking the time to reply, but my question was "What can I do" as opposed to "What can they do to me." I'm aware of what can happen if a creditor chooses to pursue legal action against a debtor, but you do fail to point out that the consumer has the right to appear in court, hire legal representation, or settle the debt before the hearing, during the hearing, or after one has been rendered. In order for someone to come knocking at your door or filing levies against your assets, you have to be entirely uncooperative with the court proceedings by either not showing up or claiming you are basically destitute and unable to comply with any court-mandated payment arrangement that a magistrate may deem "reasonable."

So, again, I would love someone's input on what I can do to best cope with VW Credit.

[boomhower]

You have two option.  #1, just wait and let it fall off your report. #2, fight it.  There is quite a laundry list of requirements and paperwork that you have to recieve for the repo to be done 100% correctly.  Often this isn't done.  There are quite a few resources out there that outline the process of disputing repo's.  If your you've kept up with the paperwork over the years and are willing to put the time into you have a pretty decent chance of getting it kicked off.  You could always start off with a good will letter before going the more hostile route, granted the chances are slim of goodwill you don't have much to lose. 

[nitrov]

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@boomhower wrote:

You have two option.  #1, just wait and let it fall off your report. #2, fight it.  There is quite a laundry list of requirements and paperwork that you have to recieve for the repo to be done 100% correctly.  Often this isn't done.  There are quite a few resources out there that outline the process of disputing repo's.  If your you've kept up with the paperwork over the years and are willing to put the time into you have a pretty decent chance of getting it kicked off.  You could always start off with a good will letter before going the more hostile route, granted the chances are slim of goodwill you don't have much to lose. 

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Thanks so much! I'm just afraid it's not going to fall off because I keep hearing different things like it'll only fall off 7 years after it's been paid, and since it's not paid, there's really nothing stopping them from re-filing it or transferring the account and updating it, keeping it on my report for who knows how long. I don't have a lot of the documentation but I'm sure I could track it down if I really had to do so. Do you think a goodwill letter is the way to go or should I try a PFD since I still owe them money? I was always afraid of calling them or stirring the pot because I didn't want to risk them coming after me with legal action or something. I just wish they were reasonable and weren't expecting me to dish out thousands of dollars when I have no car to show for it! 

[Dustink]

The date of first delinquency is the key.

It does not matter whether you have paid it or not.

My advice would be to wait it out. If the necessary amount of time for it to fall off has gone by and it is still on your reports, at that point dispute it.

Since this is a major debt that likely could warrant court action. I wouldn't stir up the waters too much until after the statue of limitations for the debt has passed.

[nitrov]

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@Dustink wrote:

The date of first delinquency is the key.

It does not matter whether you have paid it or not.

My advice would be to wait it out. If the necessary amount of time for it to fall off has gone by and it is still on your reports, at that point dispute it.

Since this is a major debt that likely could warrant court action. I wouldn't stir up the waters too much until after the statue of limitations for the debt has passed.

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That's yet another thing that's confusing me. Online for Florida SOL data it says it's 4 years on open accounts and 5 years for written contractrs. I know they're allowed to report for 7 years, but I want to make sure I couldn't get myself into hot water by doing anything in between years 5 and 7. Based on DoFD, the item is past both SOL dates, I would just really hate for it to sit on my credit report for another 2 years if there was a way I could settle it affordably or do something about it and it would make a positive impact on my credit. I was considering using WhyChat's repo deficiency method that's outlined on another board's page, but I would like to hear from someone who has been in a similar situation for which some action may have worked. 

Since it's unpaid, I have a feeling it won't just fall off my reports after 7 years anyway.

[Elcid89]

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@nitrov wrote:

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@Dustink wrote:

The date of first delinquency is the key.

It does not matter whether you have paid it or not.

My advice would be to wait it out. If the necessary amount of time for it to fall off has gone by and it is still on your reports, at that point dispute it.

Since this is a major debt that likely could warrant court action. I wouldn't stir up the waters too much until after the statue of limitations for the debt has passed.

---

That's yet another thing that's confusing me. Online for Florida SOL data it says it's 4 years on open accounts and 5 years for written contractrs. I know they're allowed to report for 7 years, but I want to make sure I couldn't get myself into hot water by doing anything in between years 5 and 7. Based on DoFD, the item is past both SOL dates, I would just really hate for it to sit on my credit report for another 2 years if there was a way I could settle it affordably or do something about it and it would make a positive impact on my credit. I was considering using WhyChat's repo deficiency method that's outlined on another board's page, but I would like to hear from someone who has been in a similar situation for which some action may have worked. 

Since it's unpaid, I have a feeling it won't just fall off my reports after 7 years anyway.

---

Barring VWC agreeing to delete the tradeline entirely in return for payment or settlement (which is IMO very unlikely), nothing that you do from a settlement / repayment standpoint will either remove the tradeline or help your credit score. The only way to accomplish that is to remove the negative indicators entirely, which IMO is not going to happen.

You also need to be aware that entering into a settlement agreement or repayment plan, or in some states even offering to do so in a manner that the lender can substantiate, can reset the SOL clock, rendering you vulnerable to judgment where you otherwise would have been immunized.

The account will fall off 7 years from the DoFD, regardless of whether it is ever repaid. That is not something that the lender or the CRAs have discretion over. It is mandated by federal law.

Best advice, as given by the other poster, at this point is simply to wait it out and allow it to fall off. There is no magic fix to this problem, and you could make things much worse for yourself by trying to address it at this point.

[nitrov]

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@Elcid89 wrote:

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@nitrov wrote:

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@Dustink wrote:

The date of first delinquency is the key.

It does not matter whether you have paid it or not.

My advice would be to wait it out. If the necessary amount of time for it to fall off has gone by and it is still on your reports, at that point dispute it.

Since this is a major debt that likely could warrant court action. I wouldn't stir up the waters too much until after the statue of limitations for the debt has passed.

---

That's yet another thing that's confusing me. Online for Florida SOL data it says it's 4 years on open accounts and 5 years for written contractrs. I know they're allowed to report for 7 years, but I want to make sure I couldn't get myself into hot water by doing anything in between years 5 and 7. Based on DoFD, the item is past both SOL dates, I would just really hate for it to sit on my credit report for another 2 years if there was a way I could settle it affordably or do something about it and it would make a positive impact on my credit. I was considering using WhyChat's repo deficiency method that's outlined on another board's page, but I would like to hear from someone who has been in a similar situation for which some action may have worked. 

Since it's unpaid, I have a feeling it won't just fall off my reports after 7 years anyway.

---

Barring VWC agreeing to delete the tradeline entirely in return for payment or settlement (which is IMO very unlikely), nothing that you do from a settlement / repayment standpoint will either remove the tradeline or help your credit score. The only way to accomplish that is to remove the negative indicators entirely, which IMO is not going to happen.

You also need to be aware that entering into a settlement agreement or repayment plan, or in some states even offering to do so in a manner that the lender can substantiate, can reset the SOL clock, rendering you vulnerable to judgment where you otherwise would have been immunized.

The account will fall off 7 years from the DoFD, regardless of whether it is ever repaid. That is not something that the lender or the CRAs have discretion over. It is mandated by federal law.

Best advice, as given by the other poster, at this point is simply to wait it out and allow it to fall off. There is no magic fix to this problem, and you could make things much worse for yourself by trying to address it at this point.

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Thank you. I really feel this is sound advice. It's not what I want to hear, but it at least makes sense and I would rather not put myself in a worse predicament than the one I am in currently. I really appreciate it!