Repossession Became Charge-Off

Neblett · ‎04-17-2007

My car was repo'd on 3-14-07. It was sold at auction on 3-29-07, and I still owe a deficiency. Oy.

I worked out a settlement payment deal for the deficiency with Ford, and they agreed to request a change of status to the credit bureaus from "Repossession" to "Charge-Off." I had my doubts that they could really do that, but lo and behold, I got an updated credit report from TransUnion yesterday, and the "Repo" is gone, replaced with "Charged Off." Hooray! I know that a C-O is still not a good indicator on the report, but it HAS to be better than a "Repo" if I am trying to get another vehicle, yes?

Main Question: If this holds true for the two other bureaus, can I legally claim that I have not had a repo? Is the credit report that lenders and auto finance departments get different than the consumer one I receive? And will it still show the repo in the history section, or only the charge-off?

Thanks.

Anonymous · ‎04-17-2007

Neblett wrote:
My car was repo'd on 3-14-07. It was sold at auction on 3-29-07, and I still owe a deficiency. Oy.

I worked out a settlement payment deal for the deficiency with Ford, and they agreed to request a change of status to the credit bureaus from "Repossession" to "Charge-Off." I had my doubts that they could really do that, but lo and behold, I got an updated credit report from TransUnion yesterday, and the "Repo" is gone, replaced with "Charged Off." Hooray! I know that a C-O is still not a good indicator on the report, but it HAS to be better than a "Repo" if I am trying to get another vehicle, yes?

Main Question: If this holds true for the two other bureaus, can I legally claim that I have not had a repo? Is the credit report that lenders and auto finance departments get different than the consumer one I receive? And will it still show the repo in the history section, or only the charge-off?

Thanks.

If ford updated it with one they can update it with all three

Neblett · ‎04-17-2007

My main question still stands.

If all 3 bureaus change the repo to a charge-off because Ford has changed the status of the account to reflect that language, can I legally claim that I have never had a repo? Or will lenders be able to see that in the history on my credit, in some section I am unable to see?

Thanks.

Anonymous · ‎04-17-2007

Neblett wrote:
My main question still stands.

If all 3 bureaus change the repo to a charge-off because Ford has changed the status of the account to reflect that language, can I legally claim that I have never had a repo? Or will lenders be able to see that in the history on my credit, in some section I am unable to see?

Thanks.

]

Sorry I guess I didn't get it. If its removed from your reports, for all intents and opurposes, you never DID have a repo. So yes you can safely make that statement and no one would know the difference.

Neblett · ‎04-29-2007

I will be making 3 installment payments that add up to 1/2 of my deficiency amount on my repossessed auto. For example, the settlement offer I received was to pay $2700 towards a $5400 deficiency, and Ford will report it paid in full, as well as change the status from "repossession" to "charge-off," so I am making three regular installments of $900.

Should I request these smaller payments be reported to the CRAs for inclusion on credit reports (showing reduced balances), or should I just wait to request they report the Paid In Full after the 3rd installment is received? Will one look better on my report than the other?

I'm not concerned about the FICO crusader approach; I'm looking at "big picture" fiscal responsibility.

Any advice?

Tuscani · ‎04-30-2007

Neblett wrote:
I will be making 3 installment payments that add up to 1/2 of my deficiency amount on my repossessed auto. For example, the settlement offer I received was to pay $2700 towards a $5400 deficiency, and Ford will report it paid in full, as well as change the status from "repossession" to "charge-off," so I am making three regular installments of $900.

Should I request these smaller payments be reported to the CRAs for inclusion on credit reports (showing reduced balances), or should I just wait to request they report the Paid In Full after the 3rd installment is received? Will one look better on my report than the other?

I'm not concerned about the FICO crusader approach; I'm looking at "big picture" fiscal responsibility.

Any advice?

Better yet, ask them to delete once you PIF. And get it in writing!

Neblett · ‎04-30-2007

Doesn't hurt to ask, Tuscani, but I think the only way they would give me a PIF for delete is if I actually paid the full $5400 that is due, and I cannot afford that right now.

But I will ask.

Tuscani · ‎04-30-2007

Not true. Most CAs assume they will get nothing.. so agreeing to a PFD for less than the amount owed only benefits them. Honestly, I would not send a dime without PFD as the account marked as paid will probably do little when compared to the benefits of the tradeline being deleted. Most will tell you (in terms of scoring) that a paid is just as bad as unpaid.. a collection is a collection.

As always, YMMV.

Neblett · ‎04-30-2007

But this isn't an OCA - this is remaining with the OC (Ford).

Does that make a difference?

What I think I'll do is say that I've been working with a consumer credit counselor and that they suggested I ask about the PFD as a legitimate resolution tactic.

Message Edited by Neblett on 04-30-2007 11:06 AM