Well I'm a newbie and have a lot to learn. I've been here before but not yet ready to fight. I've read many different threads and still have more research to do. I'm happy to learn about so many success stories which is inspiring. My story is familiar, medical issues, 3 surgeries, loss income over a couple of years = slow pay to my creditors. I've managed to stay afloat somehow but continued delinquencies have lowered my score over time to the point where I won't qualify for much. Presently, I have an issue with GMAC. I had a vehicle loan with GMAC that is now paid off. The problem is the accrued late fees and/or penalties in the amount of $970. The last payment on the vehicle was in July 2007 so it's not been quite a year. GMAC calls on a regular basis but I no longer have answers or the funds to pay them currently. I am sure they are willing to accept less than owed but they are apparently already reporting the loan as "charged off" to the CRA's. So a few days ago, I get the "you have 10 days to respond" or else letter. They are going to report "negative credit information" (which they already are) and refer my account to a collection agency or attorney for further action. I had been a good paying customer for years and when the untimely events of life happened, I actually wrote them a letter before things got bad telling them of my pending financial status. Unknowingly, that was just a waste of time. In my opinion there's just not much difference between charged-off and charged-off paid. Which is what I was told the last time I spoke with them. I told them that I would no longer be able to discuss my account over the phone and any future correspondance would need to be in writing. I've just gotten a monthly statement all this time until the one I got a few days ago which also included the letter threatening pending action. I had intended to send another letter to update my present financial standing and asked that the amount they claim I owe be actually charged off and the debt written off. I would not really be interested in paying the debt and letting them continue reporting a charge-off on my account but would be willing to pay the amount if no negative information has been reported to CRA's. If someone want's to chime in with a better approach please feel free to do so. I look forward to contributing and maybe one day I'll be informed enough to help someone else.
If you can pay it in full, they will remove the derogatory notations a short while thereafter. You have to contact them directly. They are fairly reasonable.
