Charged off auto loan - want to work with bank to settle

Submitted by LiveFree on Mon, 10/05/2009 - 19:58
Forums

Hello,

I am the primary on an auto loan with my ex-gf. She took the car and stopped making payments. One year later, I am in the process of getting physical possession of the car and have contacted the bank to make good on the loan.

The bank is offering to settle for 50% of the amount owed if paid in a lump sum. I have tried every avenue and cannot get that amount together (primarily because I have a charge off on my credit report, even though every other account is spotless).

Since I can't settle with a lump sum, the bank wants me to begin making regular payments on the full amount due until I can gather a lump sum to settle.

I do not trust the bank and do not trust they will allow me to settle in a few months when I can save up the lump sum. I would like to agree to a settlement of 50% of the amount owed and make monthly payments towards that instead of the full amount owed like they are asking. So far they have refused.

They have sent me a canned settlement letter saying if I paid the lump sum 50% right now, they would remove the blemish from my credit report. However, I can't get them to put in writing any other kind of agreement (or even to say that I will be allowed to settle in a few months after making regular payments).

Do I have any ability to force their hand or am I at their mercy? I foresee that once they start getting regular payments from me, they will refuse to settle in the future and will expect the full amount paid off.

Thanks!

Depends on how bad they want their money, I would try and force their hand. Think about it, it is either accept your offer or lose out all together, I think they will give in eventually if you push the issue.

Is it a local bank? If you don't mind who is it?

Tue, 10/06/2009 - 01:37 Permalink

Hi,

Well, it is a complicated situation. You have to try and convince the bank of your offer and hence send them a counter debt settlement offer letter stating your terms for paying off the debt. Or else try to contact your former girlfriend and convince her to give half of the lump sum that the bank is asking you to pay.

You said you have a 'charge-off' in your credit report. Find out the name of the CA to which your account has been sold by the creditor. Once, you do that, negotiate with that CA regarding the removal of the negative item from your credit report through a pay for delete letter. Always remember to send the letters trough certified mail. Your credit report will be in a better state since everything else is perfect in your report. Also check if the 'charge-off' has passed 7 years or not. If it has, then it should be removed by the credit bureau.

I do not think that you are in a position to force the bank. In case you are unable to negotiate with them, the bank might repossess your car. After all, you cannot compel the bank to accept your settlement offer. It lies on the bank's discretion.

Tue, 10/06/2009 - 06:48 Permalink

The loan hasn't been given to a CA yet. It is still at the bank I took the loan out from. It is a national chain bank.

They have stated they do not want the car. They cannot find the car. My ex is broke and cannot come up with a few dollars, much less half of the lump sum. In fact, I am going to have to pay to ship the car from her state to mine. At least she has agreed to allow that to happen, but again cannot pay anything towards it.

The bank has stated that unless I pay, they will get a judgment against me in my county and put a lien on my house. They have agreed to delete the line from my credit report if I can pay the lump sum requested. Can I still negotiate with a pay for delete letter with the bank to try and start making payments towards a settlement? I don't want to make payments on the full amount.

Also, the title to the car is in my name AND my ex-gf's. If she is uncooperative, I could be stuck with a title/car that I can't sell, correct? I think the bank should be willing to change the title to my name only if I am the one paying off the vehicle.

Maybe I need to hire an attorney to negotiate for me because I'm not clear on what I can do to negotiate when threatened with judgments and liens, even pay garnishing.

Tue, 10/06/2009 - 12:45 Permalink

Someone else has to have negotiated settlement with a bank! Do you have to take their pay on the full amount BS if you can't come up with a lump sum for settlement?

Wed, 10/07/2009 - 16:12 Permalink

Live free, It seems your hands appear to be tied at the moment. The fact that the bank still owns the car loan is really in your favor and I would do everything possible to try and work with them. Getting a negative listing off your report once it has been sold is nearly impossible and do severe damage to your credit score.
As for the name on the title, if a judge ordered the car returned to you then they will also be able to make her sign off on the title and I would be sure to ask that this be done.
Try to go on and make regular payments with the agreement if you come up with the settlement amount they will take that instead. I think they could have at least let you make payments on the settlement amount instead of the full amount,especially since they do not want the vehicle back. Have they told you why they will not settle for this?

Wed, 10/07/2009 - 16:35 Permalink
Frankt (not verified)

Question is: do you get the pink slip after patments are done?

Tue, 11/24/2009 - 23:55 Permalink
cslpn (not verified)

My exboyfriend and I have a vehicle which I am paying on and I can not keep it because my daughter who is 4 years old cannot ride in the front seat, it only has a front seat there is no back seat. He is unwillingly refusing to sign off the title it I trade it in or sell it. Is there anyway I can force hime off the title?

Sat, 07/10/2010 - 19:24 Permalink
TROB (not verified)

The finance company that my car is financed through has offered a settlement of 85% of the loan and the won't budge on the offer. I have paid them during the course of the loan $10,000.00. However because I fell behind they are saying that this amount will not count towards the settlement and the want $9100.00. The value of the car is worth way less than that and I can't afford to pay 9100.00 to them especially when the car engine is gone. What should I do?

Wed, 12/08/2010 - 22:09 Permalink
bj (not verified)

i have a vehicle that has been charged off for several years now, but it does not work and i want it removed from my property, several peoples have asked to buy it but i can't sell without the title could i take it to a salvage yard? or how can i obtained the title since it has been so long?

Tue, 04/05/2011 - 01:42 Permalink
6roses (not verified)

my car is going to be charged off for $750.00 8/31/2011. Who does it go to after it is charged off? And how do I find out if it will be reposessed and can I still make arrangements to settle the debt?

Sat, 08/20/2011 - 17:42 Permalink
lisa (not verified)

We have a car that we paid $9000 down on and then made payments for 1 yr amounting to $5000 more. I called to make a payment and was informed it was charged off. we have very bad credit and dont see any way of refinancing it. SInce it has been charged off will the finance co insurance company try to repo it or what happens next?

Tue, 06/26/2012 - 16:38 Permalink
Corinthians (not verified)

I have a car that has been charged off I will. Be able to pay it off in 45 days should I wait u til I have the money I. Muu hands before starting the negotiation. Process.

Sun, 01/27/2013 - 04:11 Permalink
Marcia Frey (not verified)

My hubby and I bought a car for our granddaughter in 2016 here it is 2019 I made 3 payments on it and could not pay my granddaughter said she would pay and never did she crashed the car. Now I get a court paper saying the loan company has charged the Loan off but still are taking me and my hubby to court we don't have 8 000 dollars to pay out, I am in disability and my hubby only works part time. What can we do.

Wed, 12/04/2019 - 02:02 Permalink
Tracy Allen (not verified)

I checked my scores some couple of weeks ago, they ran down in the low to the mid 400s. I was struggling having a hard time getting approved for anything due to a layoff I had last year so I fell behind on my bills and now I am struggling trying to get my score back up so I can purchase a home. I surf the internet in search of help and I met with AUTOLINKS CREDIT SERVICES and I explained to them my credit situation and they promised to help me get my scores back on track so I can be qualified for the home purchase. After some couple of days later, they cleared the bills on my credit profile and effected the changes across all 3 credit bureaus and finally raised my scores to 793. I bought the house after a week and I am very happy today with my family. You can contact them and have them fix your credit issues as fast as possible. Contact via: autolinkscreditservices@hotmail.com

Tue, 12/10/2019 - 06:03 Permalink
Tracy Allen (not verified)

I checked my scores some couple of weeks ago, they ran down in the low to the mid 400s. I was struggling having a hard time getting approved for anything due to a layoff I had last year so I fell behind on my bills and now I am struggling trying to get my score back up so I can purchase a home. I surf the internet in search of help and I met with AUTOLINKS CREDIT SERVICES and I explained to them my credit situation and they promised to help me get my scores back on track so I can be qualified for the home purchase. After some couple of days later, they cleared the bills on my credit profile and effected the changes across all 3 credit bureaus and finally raised my scores to 793. I bought the house after a week and I am very happy today with my family. You can contact them and have them fix your credit issues as fast as possible. Contact via: autolinkscreditservices@hotmail.com / +1 (520) 800-6528 .

Tue, 12/10/2019 - 06:50 Permalink
Tracy Allen (not verified)

I checked my scores some couple of weeks ago, they ran down in the low to the mid 400s. I was struggling having a hard time getting approved for anything due to a layoff I had last year so I fell behind on my bills and now I am struggling trying to get my score back up so I can purchase a home. I surf the internet in search of help and I met with AUTOLINKS CREDIT SERVICES and I explained to them my credit situation and they promised to help me get my scores back on track so I can be qualified for the home purchase. After some couple of days later, they cleared the bills on my credit profile and effected the changes across all 3 credit bureaus and finally raised my scores to 793. I bought the house after a week and I am very happy today with my family. You can contact them and have them fix your credit issues as fast as possible. Contact via: autolinkscreditservices@hotmail.com / +1 (520) 800-6528 .

Tue, 12/10/2019 - 07:15 Permalink