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GM Fin charge off but no CA...

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flinjami83
New Contributor

GM Fin charge off but no CA...

I'm in a predicament! 
My husband owe's $2192 to GM Fin... they are reporting "charged off account, fixed rate". 

There is no CA reporting for this debt. 
Ideally I would like to offer a settlement for this acct to GM Fin, hopefully for a deletion....

 

What would you do?


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Current Score: FICO 624 (4/22/2014)
Goal Score: 700

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Message 1 of 8
7 REPLIES 7
DaBears
Senior Contributor

Re: GM Fin charge off but no CA...

Send them a settlement offer, will not hurt. As for deletion that would be up to them. 

Message 2 of 8
guiness56
Epic Contributor

Re: GM Fin charge off but no CA...


@DaBears wrote:

Send them a settlement offer, will not hurt. As for deletion that would be up to them. 


+1

 

You can always ask for a settlement and a deletion but they may not want to do both.  You may need to offer more to get a deletion also.

Message 3 of 8
flinjami83
New Contributor

Re: GM Fin charge off but no CA...

Ok, so just because it says "Charged off" doesn't necessarily mean it was sold, correct? 


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Current Score: FICO 624 (4/22/2014)
Goal Score: 700

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Message 4 of 8
guiness56
Epic Contributor

Re: GM Fin charge off but no CA...


@flinjami83 wrote:

Ok, so just because it says "Charged off" doesn't necessarily mean it was sold, correct? 


No.  That, unfortunately is a common belief. 

 

Charged off is just an accounting term.  It does not mean they sold the debt or it is not collectible.

 

If the OC TL shows a balance it indicates they still own the debt.  If the TL shows a 0 balance and says sold/transferred they no longer own it.

Message 5 of 8
RobertEG
Legendary Contributor

Re: GM Fin charge off but no CA...

+1

It is an internal accounting measure they chose to take that does not affect continued consumer obligation for the entire debt or any subsequent activity they may choose to take, such as referral to a debt collector or sale of the debt.  The debt is fully collectible.

 

Look at it as just anothe derog slipped in that is not requuired to be deleted based on any subsequent activity on your or their part.  Dont associate it with further actions other than attempting to get it deleted.

 

You dont want it referred for collection or sold.  If they wont accept a PFD, the next best thing is to offer a settlement for less with their agreement not to report the fact that they accepted less than the full amount of the debt.  It will then appear to anyone reviewing your credit report the same as if it had been paid in full.

Message 6 of 8
flinjami83
New Contributor

Re: GM Fin charge off but no CA...

One more question about this...

If they accept my offer to settle, and I pay, will that re-age the account or reset the date for it to fall off? Like change the DOFD?


Starting Score: 595 (2/22/13)
Current Score: FICO 624 (4/22/2014)
Goal Score: 700

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Message 7 of 8
guiness56
Epic Contributor

Re: GM Fin charge off but no CA...

No.  Nothing can change the DoFD.  It will be excluded as it originally was to be.  As for suing SOL, if you settle the debt that means it is paid so there is no debt to be sued over.

Message 8 of 8
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