I have a charge off on my credit report. It was a voluntary automobile repossession. It is valid. It first appeared on my report in early 2002 and the account owner is the OC. From what I have read it will fall off my report in early 2009 due to SOL. I have called the OC. They stated they sent it to collections and gave me the CA phone number. The CA has not been aggressive about payment and as far as I can tell only attempted to collect once via mail several years ago and has never called me. The OC also said they would not take payment and would only update the report to show it as Charge off/Paid or Charge off/Settled if they heard from the CA that they debt was paid. The CA offered to settle the CO for a great deal less than the principal but it was still more than I can come up with upfront. They have nothing in writing from me. I want to make right with the world and also get this CO off my report. Even with the CO my score is around 700 so the boost would be very nice. I have a few questions: 1. Why wont the OC accept payment? They are the company still showing up on my report. Grr. 2. Should I not pay the debt, and let the OC fall off my report, is it possible that the OC will then sell the account to the CA? Would the CA be allowed to put a new negative item on my report after the OC falls off? 3. Should I not pay the debt and let the OC fall off my report would I be able to just not pay the debt to either the OC or CA? I sort of doubt it, but am not sure. 4. If I pay the CA, and the CA reports it as paid to the OC, and the OC updates my report as paid or settled, will this reset a SOL timer? Or, will the negative item still fall off early next year? 5. If the OC or CA was going to sue me, would it have happened by now? 6. The CA's contact information was given to me by the OC, the CA has been so lax about collecting, and the CA is willing to take less than principal, and the credit report is still shows the OC as the account holder. Something seems fishy. Any other insights on how I should handle this are very welcome and appreciated. I like this site and searched around for these answers. There was a lot of data to sift through so I apologize if the answer was there and I did not find it. Thanks.
To the CRA, OC, or CA? From what I have read it seems that the CRA is the first one to do. I found the CRA dispute sample letter on CN. What would be the next step after this?
ca first follow a week later to cra aslo check on sol when it showed first del it could be over sol.i'm a padre fan. what state are you in california is 4 year's
Just remember that if you settle and say the debt was 10K and you settle for 5K you would most likely get a 1099C for 5K! Are you prepared to pay taxes on this 5K income? Woofer
I am in Nevada so the SOL should be 7 yrs. The tax hit would be acceptable. My main worries are about if I don't pay the debt. Will I get sued? Will a new negative item show up on my report after the OC SOL expires? Should I pay or not? And, what are the consequences of both options. Thanks.
Yes, you might get sued or you might not. You might lose the case you might not. If you do get sued, you will be able to settle I am 99 percent sure for a lot less than original amount. If you want to strike a deal you can pay it all but of course ask for delete and you may be able to get it. Could be the OC can't accept payment because they sold the debt. What do your credit reports state? You may well be out of SOL . Where did you get the 7 year thing? I would not want to pay a JDB,YMMV... SO... If you have the money to pay and want to get it a done deal then pay up. Woofer
You also need to check again. SOL for repo may be different than for credit cards. It may follow the UCC, which I believe is four years. When checking SOL, always make sure you're checking the right type of account. Also, don't confuse the SOL for collecting with the reporting period. The reporting period is seven years. That has nothing to do with when a debt may be legally collected. Paying the debt may not raise your score. In fact, it may actually lower it. As to will you get sued, the answer is "maybe." But if the debt is past SOL, you just need to go to court and assert the affirmative defense that it is out of SOL. Being sued doesn't equate to "you lose." The OC has probably sold the debt, which is why you can't settle with them. They can still report as charged off or repo on your report, in addition to the reporting by the CA. However, no reporting should take place more than seven years after the date of first delinquency. That is what determines the reporting period, no matter who owns the debt.
Ah! Nevada's SOL on collecting a debt is 6 years. Thanks for pointing me to this information. I will let the CO fall off and everything should be fine. Thanks to all who helped me on this.
