Good Morning - I was wondering if someone could help me with my situation. I have a car charge-off/profit and loss on my credit report. The finance company says that it was charged off in Sept., I never recieved anything stating that fact. I sent them a partial payement in Sept, but in October 2005, I brought my account current and then a couple of weeks later, I sent them another large sum of money, my next payment is not due until Feb of next year (have proof on their letterhead). The vehicle is to be paid off in November '07. I was never issued a 1099C. I have disputed with the CRA about the amount being charged off, comes back verified. Sent a MOV to the CRAs (still waiting for green cards). Have not heard from the finance company as of yet. Any suggestions would be greatly appreciated.
Was Sept 2005 the only payment that was short? Or were there a series of missed payments, with the account being brought current in October? If it was only a single partial or missed payment, it is unlikely to have actually been charged off, and the reporting of a charge off is inaccurate. It could have been charged off after a series of missed payments, but if you brought it current, they would have had no loss after that, and they would not have had any reason to issue you a 1099. They might still show the charge off as having happened, but perhaps with $0 charged off, and a current balance.
Thanks Ontrack - If I am not mistaken, I made partial payments 3 mo straight. I made it current and I overpaid them. My next payment is not due until next year. 3/05 OK, 4/05 OK, 5/05 OK, 6/05 OK, then it says DOL 6/05, 7/05 60 days, 8/05 90 days, and then 9/05 CO, 10/05 ND, 11/05 CO, 12/05 ND, 1/06 CO, 2/06 ND, 3/06 CO. But on all 3 of my credit reports it says Profit/Loss Write Off. Balance $5000 I don't know what to do. Update: Got a message from them regarding my account, the want to make asettlement on it so the can send me my title. The frist time they offered it to me was in Feb, I told him to put it in writing, he said he couldn't - NOT! I do not do business that way. Now what?
What is a 1099C and how does it relate to charge offs? I'm new to all this credit report stuff and have one creditor listing my acct as co 3 months in a row.
It sounds like if they were reporting correctly they would show 3 months with negative notations: 30 days late, 60 days late, 90 days late, but all other months OK. Since partial payments were made during those 3 months, most companies would not have written off anything, since they had the likelyhood of getting payment, on top of the security of the lien on the car. It looks like they are erroneously reporting as "charged-off" when they should be reporting simply "late". In addition, it makes it appear they have "charged-off" $5000, when this is simply the remaining balance on your loan, which is current, with nothing due until next year. The difference is probably very damaging to your scores. Have you pulled reports with scores, and is this the main negative item on your reports? Have you received any notices from other creditors that they are raising your rates or reducing your credit limits due to negative information on your reports? Have you disputed thru the CRA, to establish that the lender's reporting is intentional, even if erroneous? Under the loan terms, do your payments ahead get applied to principal, or are they handled as early payments applied when scheduled to be due?
They are reporting it as a charge off on purpose. I tried to trade in my vehicle January 2006, but the dealer said that they were reporting it as a repo at first, I said no, you are looking at it, then they asked them for my account history and they forwarded it to the dealer, that is when I found out that it was more than current, next payment due Feb 2007. I disputed with the CRA, the finance company, their credit reporting dispute section. My next step is an attorney. They want to settle with me, I told them to put it in writing. Once I get it in writing I am giving everything to my attorney and let him handle it. I want that charge off removed from my credit report.
What interest rate are you paying? Are they, in effect, interfering with your payoff of the loan, to their financial benefit, and contrary to the terms of the loan? "They want to settle with me" Do they want you to pay of the loan, or did you approach them and indicate you wanted to pay off the loan? What do they want, other than the remaining balance? Are they correctly posting your payments, and is your current balance due accurate and correct?
My interest rate is about 20%. I never called them requesting a settlement, they kept calling me. They sent me a letter dated June 22, probably didn't get mailed until the 23rd. I got it on the 26th, the offer was only good until the 27th. They are trying to cover their butts.
At 20%, you would want to get out from under this loan as quickly as you could afford to. Which you were in the process of doing back in January when you wanted to trade it in. You also want their erroneous reporting removed. What were the terms of their settlement offer? Since you have paid ahead, did they apply the excess amount paid toward principal, or as prepayments of future months payments to both principal and future interest not yet due?
