Auto Loan Report - Can I correct this???

[Anonymous]

My wife's mother bought her a new car in 2001 and my wife co-signed on the loan(who knows why-duh!).

Every single payment for this car was made by Auto-Pay directly from her mothers personal USAA account.   The car loan was PAID IN FULL by her mother on April 2006 and all 60 monthly payments were never late.  Yet the Equifax report shows "First delinquency in Oct 2005".  That is the month my wife and I had to file for Chapt 13, but there's no way the payment was late!  

My wife and I filed Chap13 in Oct 2005.   Now this car loan appears ONLY ON  EQUIFAX with the following info: "Included In Chapter 13....".  No info is reported on original balance, monthly payment, Paid As Agreed....none of that!  Just "Included in Chapter 13, a $0 balance and Closed By Consumer"

Is this an accurate reporting because my wife co-signed on the loan?  If so, and since it only shows  on Equifax, should we just leave well enough alone?  Is there any way to get this removed???  I've been told by someone to turn this over to a law firm.  Anyone agree or disagree?

Does this likely show and affect her mother's credit report/score?

Message Edited by PinzPilot on 05-21-2009 09:44 AM

[krielly]

I'm sorry to say, but if you filed BK in 2005, and the loan was active at the time, the bank is entitled to report it as "IIB". Including this in your account, makes it automatically a "derogatory" account (that's probably why it is saying delinquent.

Even though the payments were still made on the loan, the loan was technically discharged in the BK.

You can try to dispute this with the bank, and ask them to report the positive pay history on the account. Some will, some won't.....

Good luck

K

PS: This should not affect your wife's mother. If this appears on her report, she should dispute it.

Message Edited by krielly on 05-21-2009 01:10 PM

[AndySoCal]

Is this corect reporting my answer is absolutly not. There is a document that shows the list of accounts that was included in the BK.  Dispute that auto loan trade line and show Equifax the list of accounts included in the BK. This should be sufficient for Equifax to remove the incorrect reporting of the tradeline

[krielly]

If this was an existing tradeline when the BK was filed then it absolutely is considered included in the BK, no matter if the payment was made outside of the BK or not.

All debt owed at the time of filing MUST be reported and included in the plan. Unless this debt was reaffirmed, the creditor is entitled to report IIB for this tradeline. Regardless of whether or not the debtor is paying it back.

K

[Anonymous]

Krielly wrote: 

If this was an existing tradeline when the BK was filed then it absolutely is considered included in the BK, no matter if the payment was made outside of the BK or not.

All debt owed at the time of filing MUST be reported and included in the plan. Unless this debt was reaffirmed, the creditor is entitled to report IIB for this tradeline. Regardless of whether or not the debtor is paying it back.

Krielly,

This reporting is really hurting my wife's FICO score.  I know "life ain't fair", but this REALLY seems unfair.  USAA was PAID IN FULL on time, EVERY MONTH.  The original Ioan was faithfully honored by my wife's mother!!  I went round and round with the BK attorney about this, but he just said, "if in doubt, list it".  Never, and I mean NEVER was reaffirming ever mentioned!! 

This just seems all wrong and that something should be able to be done to resolve the situation to reflect it as a positive.  USAA doesn't even report the "AMOUNT OF THE ORIGINAL LOAN", "THE AMOUNT AND NUMBER OF MONTHLY INSTALLMENTS", "PAID AS AGREED" or anything positive about this loan.  Just reports "Included in Wage Earner Plan", "$0 balance", and "Closed at Consumers Request".

At least it's only reported on Equifax, but really, isn't there at least something that can be done to help this matter????????

[krielly]

Have you contacted the lender directly and asked them to report your positive payment history, etc to the CA?

The worst they can say is no, but they may agree to...... It's worth a try!

[Anonymous]

Krielly wrote: 

Have you contacted the lender directly and asked them to report your positive payment history, etc to the CA?

The worst they can say is no, but they may agree to...... It's worth a try!

Krielly,

I contacted USAA some time ago when they first reported this auto loan as "Charged Off As Bad Debt".  That took 2 phone calls and 3 certified letters to get the results that now appear. 

Even though you state the worst they can say is "NO", which is exactly what I would expect of USAA on this matter, I believe the worst they could do is report the info to ALL THREE CRA'S rather than just Equifax as they are doing now.  That would make matters a whole lot worse.

So, from the responses I've received on this question, it seems that there is nothing I can do.  What a shame.

[AndySoCal]

When you filed the BK was this one of the accounts that was included? From your original post it sounds like it was NOT included. Correct?