Gm Financial Pay for delete?

[Anonymous]

I had a reposession with GM financial last year. My inerestr rate was so high that I oewd waaaay more than the original loan. They sold the car at a private sale instead and didnt update my account or balances since Feb 2020. So I disputed it for wrong info. The "updated" it with ND No Data) all the months until this one and now it looks like I have a fresh past due of 24000 or a fresh charge off. I called and they offered me a 50% pay off of balance. Still over 12K. I'm wondering has anyone ever negotiated less, OR will they delete the account completely if I pay it. It makes zero since to pay off this brand new charge off for all that money because it wont really help my credit or score. The update dropped my score 40 points. It is literally my last negative account. 

[blindambition]

What ever they agree to will only be updated to settled as agreed. GM Financial will not PFD. GW to remove lates will also not help, since it's CO.

[blindambition]

It also helps to pay it. While it's a CO, paying stops updating. Allowing scores to recover. If you don't pay, GM may update throughout the 7 years it's on report. If they suddenly started updating monthly... looks like fresh CO each month. That will keep score suppressed.

[FireMedic1]

Is that what the balance was after they sold it at auction or wherever? You only owe what they got for the car that didnt pay off the balance owed. Auto loan companies never that I've seen ever delete stuff.

[Anonymous]

12,500 was the settlement. My interest rate was so high and the missed payments during the lockdown and being out of work, pushed the balance to where I owed almost $10K over the original purchase price. After they sold it at a "private sale", it left  balance still of 24K. Mind you, this was a brand new car. SO the settlement offer was 12K. Said I could spread it out over 6 months but they saif it will just tsay a paid charge off. No chance of deletion. 

Just really discouraged because before this I had made no mistakes since febuary of last year and my cedit had improved dramatically after paying a bunch of stuff off. So this popped up and some weird collection just now and i'm just wondering if I should have just filed bankruptcy and rebuilt from there because this is neverending. 

[Anonymous]

Jut sucks because I paid off over 15K in debt, and got a lot of stuff removed which dramatically increadsed score, then this showes up and now its like I just missed a payment

[Anonymous]

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@Anonymous wrote:

Jut sucks because I paid off over 15K in debt, and got a lot of stuff removed which dramatically increadsed score, then this showes up and now its like I just missed a payment

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That is why I strongly discourage disputing a basically accurate account when it hasn't updated in some time. Since you had distanced yourself from the last uodate, your scores healed. Since it is an installment loan, it may help your scores some when the balance updates to zero, but it is most unlikepy to get an original creditor to ever do a PFD. PFD is mostly for collection agencies, because a lot of times it is a double whammy on your credit reports (original account plus collection account).

I would settle up so the balance reflects $0 (after 1 or more updates) and that us time, will help your scores rebound. The buggest score boost will be when the last CO and last CA (if you have any) comes off your CRs, but this should at least help in the meantime.

[FireMedic1]

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@Anonymous wrote:

12,500 was the settlement. My interest rate was so high and the missed payments during the lockdown and being out of work, pushed the balance to where I owed almost $10K over the original purchase price. After they sold it at a "private sale", it left  balance still of 24K. Mind you, this was a brand new car. SO the settlement offer was 12K. Said I could spread it out over 6 months but they saif it will just tsay a paid charge off. No chance of deletion. 

Just really discouraged because before this I had made no mistakes since febuary of last year and my cedit had improved dramatically after paying a bunch of stuff off. So this popped up and some weird collection just now and i'm just wondering if I should have just filed bankruptcy and rebuilt from there because this is neverending. 

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Welcome @Anonymous 

If you can spread it out over 6 months. Go for it. And do not claim BK for 1 car loan that went south. Deletion from car loans dont fly. Once paid it will quit updating and age off in time. Hey we all made mistakes in this part of the forum or leftovers from last years pandemic. Were here to help.

[Nikita2008]

I highly doubt you will get a PFD from GM Financial. I had some communication with them about 3 months ago trying to goodwill lates, and no go.

I first disputed because it was being reported on EQ as being open when I traded in nearly 2 years prior, after I cleared that up I tried doing GW for lates. I went to the highest level within GM that I could which is Mary Barra.

They did call me back and said they have a strict policy of no GW, or deletes, however they would not update the account any further. Their reasoning is that if they do it for one they have to do it for all. I understand and respect the policy and I have moved on, it was worth a shot.

All that said I feel for you, we all make mistakes, which is why we are here. I bought a brand new car through them as well and struggled with the payments almost for the life of the loan, because I had gotten sick myself then, lost 4 family members, 2 friends and 2 dogs in the span of a year and went into a tail spin. We pick up and we move on. I would not file BK for that alone BK is going to have an impact longer than a Pd charge off will.

I had numerous 90 day lates with GM, as well as a charge off CC in 2019. I had a couple of 30s and a 60 on 2 ccs during CoViD (Dec. 20) - today FICO 8's are 693, 707, 710. You can bounce back from this.

[MrDFinance]

I had a few late payments on my GM loan back when I was doing my rebuilding and even after I paid the loan off in full they refused to remove the late payments stating they are obligated to report correct information 😖