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how do i settle up with a repo?

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taggl00
Valued Member

how do i settle up with a repo?

i have had 2 cars repossessed in 2009.

they are both with the same loan company vnb loan services inc.

one had a balance of 9k and second was 13k.

one was a voluntary surrender and second was repossessed.

my question is....since they got both cars back, had do i settle these accounts?

I'm not really expected to pay 22k for cars that were given back?

i figured, i gave the cars back, it says balance owed $0, how do i clear this?

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StartingOver10
Moderator Emerita

Re: how do i settle up with a repo?

Actually a repo and the collection of the balance of the loan are two separate things. The loan stands on its own. Giving back the vehicle does not extinguish the loan.

 

If you look at the note you signed when you borrowed the money, you will see the lender for your auto has the right to collect on the deficiency. But in order for them to do so, they have to follow the laws set for your state for repossession.

 

You will need to settle these repo deficiencies. First make sure they followed proper procedure for your state. Then check to see if they have a judgment against you. Then approach the lender with a settlement plan. Include in your plan a provision for the lender to remove the tradeline from your credit report after you have settled the debt. Good luck.

Message 2 of 3
apandabear
Regular Contributor

Re: how do i settle up with a repo?


@StartingOver10 wrote:

Actually a repo and the collection of the balance of the loan are two separate things. The loan stands on its own. Giving back the vehicle does not extinguish the loan.

 

If you look at the note you signed when you borrowed the money, you will see the lender for your auto has the right to collect on the deficiency. But in order for them to do so, they have to follow the laws set for your state for repossession.

 

You will need to settle these repo deficiencies. First make sure they followed proper procedure for your state. Then check to see if they have a judgment against you. Then approach the lender with a settlement plan. Include in your plan a provision for the lender to remove the tradeline from your credit report after you have settled the debt. Good luck.


Solid advice here.

 

I do want to add.. It is quite likely they sold the vehicles. So you might not owe the total $22k. 

 

What happened to me.. I owed about $10k when they took my car. They tacked on penalties and a whole bunch of repo fees. They sold the car at auction for like $11k or $12k. They subtracted what they made off the sale from what I owed them.. with all those fees added on. I ended up owing like $500. 

 

Best thing to do is get in touch with them. Make sure they followed the laws in your state. Find out what balance is owed, if any. If you can pay 100% in exchange for a deletion from your CR, I'd jump on it. Repos hurt quite a bit, and will kill your auto enhanced FICOs if you plan on financing another car in the next couple years. If they'll accept a settled amount AND also delete, I wouldn't waste my time chatting on the forums! Smiley Wink

 

Good luck, let us know how it turns out!

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
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