I have an auto repo chargeoff on my credit reports. The owe amount on the account is $16,800 in which I'm paying monthly payments of $100 to a collection company. The CC tried a settlement with me for $6800 but I told them that I don't that type of cash, so now I'm making payments to the CC. Do I have to continue to pay them or try to work something out with the original creditor. I don't know who I should deal with. Can I get some advice from someone?
It's pretty tough to negotiate with the OC once they've sold or assigned the debt to a CA. If the OC is reporting the debt, you might have a slightly better chance. One thing you must do is make sure that it's being reported properly on your CR every month. Some OC's won't update the balance each month, even though you're making payments. This is important to potential creditors who may have questions regarding the TL. If you can't prove that you're paying down the debt, it'll create a few more headaches later on.
how long have you been making payments? are you 100% sure this $16,800 amount is correct? have you ever disputed its validity? who is the CA? What state are you and the CA in? You've pretty much admitted that you agree this account is yours by paying it, so you can't really go the 'not mine' route. You could, however, claim that you do not believe the amount is correct. (like maybe the CA has added fees or interest, which could be illegal.) If you've never disputed the account, you could write them a letter saying something like: "Now that I think about this, I dont believe it is correct, and a friend told me that I have the right to dispute this account's validity. Please provide me with proper validation of this account as soon as possible." You can stop making payments until they validate as per the FCRA. (or you can continue to make the payments if youre the type who believes in paying a legitimate debt.) In the meantime, READ READ READ. You've got to read this board until you get a headache if you want to know the best approach to take with this. It is a rather large debt. Youre lucky tho....sounds like you have a CA who is willing to shave 10 grand off the debt. Thats pretty nice for a CA. oh, how about the SOL (statute of limitations) in your state? have you checked that? good luck!
