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Credit question

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Anonymous
Not applicable

Credit question

Hey,

I'm sure they may have been covered on this forum or another, but I have a question about my credit. If this is the wrong place to ask, my apologies, but I've been looking and my particular situation is hard to find info on.

So, I have a car loan through Credit Acceptance, if you don't know who they are, congratulations! They are the worst to deal with. Anyway, got my car and was paying as normal, but then I lost one of my jobs which paid my car payment in one paycheck. Ever since then I've been struggling to make the payments and barely managing. Usually, paying big payments when I had the extra income. But, despite my best efforts, I fell behind. I'm currently four months behind and have been thinking they may come for it and repossess. I keep a close watch on my credit because I am trying to improve it, and I noticed yesterday, credit acceptance closed the account and listed it in collections... But I still have the car.

Side note, I do park it in my garage, but I also drive to work and it sits in the lot (and they know where I work). Also I'm a night owl and about 5-6 days/nights a week sit outside in my garage (with the door up) with my dog, and I've never seen a tow truck go by.

My question is basically, how do they close the account and send it to collections while I still have the car? I'll never stop worrying if they're coming for it, but if they sold the account, would they? I'm quite confused by this...

Another side note, I actually had a car through these people before. About a year into the loan the transmission went out and I couldn't drive it. I had to get a new car and couldn't afford two payments so it sat in my garage. Again, I never hid the car, sat in my garage with the door up all the time and nobody came for it. After 6-7 months I finally called them to come and pick up the car, which took 2-3 calls before they finally came. They eventually removed the car loan from my report and I've never heard of it again. After getting a second loan for this car (I was shocked!!) , I assumed they just wrote off the first one.

But, basically, I'm just confused why the listed it as closed and in collections. I would assume they would repo, auction the car, apply that to the loan, charge me what's left, close the account and then sell to collections.

Any help is seriously appreciated!!
Message 1 of 4
3 REPLIES 3
gdale6
Moderator Emeritus

Re: Credit question


@Anonymous wrote:
Hey,

I'm sure they may have been covered on this forum or another, but I have a question about my credit. If this is the wrong place to ask, my apologies, but I've been looking and my particular situation is hard to find info on.

So, I have a car loan through Credit Acceptance, if you don't know who they are, congratulations! They are the worst to deal with. Anyway, got my car and was paying as normal, but then I lost one of my jobs which paid my car payment in one paycheck. Ever since then I've been struggling to make the payments and barely managing. Usually, paying big payments when I had the extra income. But, despite my best efforts, I fell behind. I'm currently four months behind and have been thinking they may come for it and repossess. I keep a close watch on my credit because I am trying to improve it, and I noticed yesterday, credit acceptance closed the account and listed it in collections... But I still have the car.

Side note, I do park it in my garage, but I also drive to work and it sits in the lot (and they know where I work). Also I'm a night owl and about 5-6 days/nights a week sit outside in my garage (with the door up) with my dog, and I've never seen a tow truck go by.

My question is basically, how do they close the account and send it to collections while I still have the car? Its not always advantageous for a creditor to reposess especially if upside down in the loan or there are other factors involved. May have just sent it to internal collections, once an installment loan goes past 120 days they typically CO it even though you may be making some payments on it. I'll never stop worrying if they're coming for it, but if they sold the account, would they? Not all collectors are dealing with sold accounts they can just ask them to collect for them. This doesnt mean they wont sell it in the future and the new owners always have their repo option available as well.

I'm quite confused by this...

Another side note, I actually had a car through these people before. About a year into the loan the transmission went out and I couldn't drive it. I had to get a new car and couldn't afford two payments so it sat in my garage. Again, I never hid the car, sat in my garage with the door up all the time and nobody came for it. After 6-7 months I finally called them to come and pick up the car, which took 2-3 calls before they finally came. They eventually removed the car loan from my report and I've never heard of it again. After getting a second loan for this car (I was shocked!!) , I assumed they just wrote off the first one.

But, basically, I'm just confused why the listed it as closed and in collections. I would assume they would repo, auction the car, apply that to the loan, charge me what's left, close the account and then sell to collections.

Any help is seriously appreciated!!

 

Message 2 of 4
Anonymous
Not applicable

Re: Credit question

Thanks for the info. One question, what do you mean when referring to CO'ing the loan. Tried to look it up, but I find it's info on co-signing.

Thanks again!
Message 3 of 4
gdale6
Moderator Emeritus

Re: Credit question


@Anonymous wrote:
Thanks for the info. One question, what do you mean when referring to CO'ing the loan. Tried to look it up, but I find it's info on co-signing.

Thanks again!

CO = charge off

 

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Message 4 of 4
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