Car Charge Off - Co-Signer - Help

[Anonymous]

Hey everybody,

Working hard to help co-worker/friend clean up her credit. Her last and final derog on her reports is a car charge off that she was a co-signer for. Back in 2014 she co-signed a car for her son's father. Towards the end of 2015 he decided that he no longer wanted the car and started paying late for months until he decided to turn it in to the dealer. It was a $13,000 loan, the dealer resold the car, and there was a difference of $5649. He refused to pay it and it was charged off in July 2016 by Generations Bank. It reports every month on her reports and on her Experian report it states that it will be removed Feb 2022. I have tried to good will letter her request but no dice, they updated it (what I dont really know) but her score went up a few points. My question is how do I attack this when the time comes?

1. Is it experian that you can request removal 6 months prior to that date? It only shows on her Experian and Transunion report.

2. When I do the letter do I request the whole account to be removed? Or am I asking for the charge off to removed? Ived never really understood this part of "removal". The last payment made on the account was May 2015. after that there is 30, 60, 90 and 120 lates after that until July 2016 Charge off.

Thankfully she has her own car loan opened in 2018 and always have paid on time. She knows now to never co-sign for him or anybody ever again. Her Experian and Transunion sit at around 667 and Equifax 720. 

Thanks for any advice provided. She had paid a company $500 2 years ago and they did nothing. So I decided to try my best to help her as I have cleaned up my own incidents with the help of all of you! 

[gdale6]

1. TU is 6 mo ahead and EX 1-3 mo

2. With GW letters yeah you ask for the whole TL be removed. If you are speaking about the early exclusion you just ask that it be excluded early as exclusion removed the whole TL

[Anonymous]

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@gdale6 wrote:

1. TU is 6 mo ahead and EX 1-3 mo

2. With GW letters yeah you ask for the whole TL be removed. If you are speaking about the early exclusion you just ask that it be excluded early as exclusion removed the whole TL

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Thanks for the response.

I assume in her case that may be a little bit of a negative thing for her? Her existing accounts are considered "new". Her 2 CC's are not even a yr old and her car loan is from 2018. To my understanding the charge off was still giving her an aged account since it was from 2014?

[Anonymous]

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@Anonymous wrote:

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@gdale6 wrote:

1. TU is 6 mo ahead and EX 1-3 mo

2. With GW letters yeah you ask for the whole TL be removed. If you are speaking about the early exclusion you just ask that it be excluded early as exclusion removed the whole TL

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Thanks for the response.

I assume in her case that may be a little bit of a negative thing for her? Her existing accounts are considered "new". Her 2 CC's are not even a yr old and her car loan is from 2018. To my understanding the charge off was still giving her an aged account since it was from 2014?

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@Anonymous yes it will lower her avg & oldest  ages. What year did her loan open in 2018? Because when it becomes the oldest account, when it turns 3 years old, there will be a scorecard reassignment on version 8, unless it's already passed 3 years old.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@gdale6 wrote:

1. TU is 6 mo ahead and EX 1-3 mo

2. With GW letters yeah you ask for the whole TL be removed. If you are speaking about the early exclusion you just ask that it be excluded early as exclusion removed the whole TL

---

Thanks for the response.

I assume in her case that may be a little bit of a negative thing for her? Her existing accounts are considered "new". Her 2 CC's are not even a yr old and her car loan is from 2018. To my understanding the charge off was still giving her an aged account since it was from 2014?

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@Anonymous yes it will lower her avg & oldest  ages. What year did her loan open in 2018? Because when it becomes the oldest account, when it turns 3 years old, there will be a scorecard reassignment on version 8, unless it's already passed 3 years old.

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@Anonymous You mean month? Haha

She doesnt remember so I looked on her reports and it says Feb of 2018. There hasnt been an increase as far as I see, but her report was last updated on Feb 10 so maybe after the new report.

[Anonymous]

Yes I meant what month LOL.

No had she been clean and had that removed before February then she would’ve saw Scorecard change in February. But since that date has already passed, she’ll go straight to a mature Scorecard upon removal.

[Anonymous]

But there is a good chance of a decrease because she will be a very young Mature profile , if that makes sense. In other words, she would’ve just went from young to mature in February, so whenever this happens she will only been less than a year into a mature card.

[RobertEG]

FCRA 605(c) mandates exclusion of reference to reportiing of a CO no later than 7 years plus 180 days from the reported DOFD, and the CRAs traditionally exclude at approx 7 years.

Upon exclusion of any reference to the debt having been charged-off, EXP then looks at whether or not the debt remains unpaid (i.e., the account remains delinquent), or if the debt has been paid (i.e., the account is no longer delinquent) to determine whether or not to also exclude the entire trade line in addition to the reported CO.  That policy is clearly recited on their web page.

The basis for that policy is the separate provision of FCRA 605(a)(5), which requires that "any other adverse item of information" must also be excluded at 7 years.  In the case of an unpaid, delinquent debt, the current account status remains adverse by required reporting as still delinquent.  Since current status is a mandated reporting element that must be accurately reported, and since section 605(a)(5) mandates exclusion no later than 7 years from occurence, EXP interprets the FCRA as mandating exclusion of the entire account.

That policy does not apply if the debt has been paid, and thus the reported current status is no longer one of continued delinquency.

Thus, if you pay the debt, the CRA will only exclude reporting of prior CO, but if the debt remains unpaid, the CRA will exclude the entire account. 

Of course, if you also, at time of payment, have obtained a pay for deletion agreement, the reporting creditor must then delete whatever is agreed to, be it only the CO or the entire account.  That is totally separate from the exclusion determination made by the CRA.

[Anonymous]

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@Anonymous wrote:
But there is a good chance of a decrease because she will be a very young Mature profile , if that makes sense. In other words, she would’ve just went from young to mature in February, so whenever this happens she will only been less than a year into a mature card.

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Make no mistake OP, if this happens it is definitely preferable to having a CO on her reports. Those lost points will come back, but even with a temporary score drop, a clean file is far preferable to a dirty one with a serious mark like a CO, regardless of score.

[Anonymous]

^^^Absolutely, +100.