Hello everybody, I'm new to the group, I'm not sure if this sould be a new thread. I've been cleaning up my credit for the last 45 days and I'm at the point where I'm trying to settle with creditors. My top priority account at the moment is settiling an auto loan that was handled very unorthox according to the people I have spoken with. I had a 60 month contract, paid 52 payments, fall behind 5 payments(they sent letters, no repo man) and and got caught up( paid $3,000). They charged me off and I never heard from them. I drove the car for 8 months. I want to refinance my home and clean up my credit. So I called them and asked what happen, I told them the original contract will be due this month and I haven't heard from you guys all I know is you wrote me off and I wasn't aware unit 2 months ago when I ran my credit( for all I know, you guys lost my records, changed owners, too busy to collect??) Anyhow I want to pay this off and clean my credit. They sent me a settlement offer with $3400 balance and said I they wold post a "PAID REPOSSION", I counteroffered with $3,000 and "Paid as agreed", What are my legal rights to demand a PAID AS AGREED status, if I agrue that I brought the account current on 2 ocasions within the original time-span of the contract: 1) when I fall behing 2) at the end of the contract by trying to negotiate a settlement
I understand why the loan was charged off. The auto finance company probably decided instead of going thru the expense of paying for the costs of a repo it would be more financially prudent in their situation to just charge off the remainder of the loan. Don't try and focus too much on getting the TL marked as "paid as agreed". Most creditors would rather eat shit and go blind than to report a charged off tradeline as positive. I'd concentrate on something neutral such as complete deletion. Also it might do you good to get the TL marked as "PAID REPOSSESION". Since there was no actual repossesion, that coud be considered defamation to knowingly provide false information to the CRA's. Would take a lot of balls to pull it off, but you could sue them because of it and use that to leverage deletion of the TL. I honestly doubt they would want to fight a large lawsuit after they get their money. BTW I assume you have not recieved title to the vehicle as of yet?
Yupp, have not go the title. They actually, gave me another 30 day extention today, I guess they already got thier money on the charge off! I want to turn this into my positive so when I get a loan it will look good, but I wrote hell of a hardship letter. Anyhow, the balance is $3035, they wrote off $5600 so, are they going to loose money by settling? They don't seem in much of a hurry to settle, I'm doing all the calling!!!
I just got an Idea. Since they charged it off, do you think they would settle for more money and send me a 1099. In other words( for those that don't know what a 1099 is) I woud have to state on my taxes net year the settle amount as income. Then I can write it off on my businees. does anybody know the tax legalities behind that?
