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edward
Guest
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Post subject: |
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Hi,
I think the loan company meant that you would be making payment as a charge off amount, but that does not mean you would or the other co-signer will not be responsible for the debt.
The other company may be the collection agency is asking you for the balance amount as you are the co-signer and as the other person is not meeting his payment obligation, they are asking the balance from you. They have the legal rights to ask the balance from you as you are the co-signer for the loan.
Thanks |
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colin
Moderator
Joined: 30 Jun 2006
Posts: 582
Location: Waltham, Massachusetts
112.65 Dollars($)
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Post subject: |
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Hi,
Edward pointed it out correctly.
The loan company charged off as there must have been long delay in the payments and the debt was written off as uncollectible and they stopped spending time and attorney expenses for collecting the same.
But this fact does not mean that you as a co-signer do not still have the loan liability and now the uncollected amount of debt was sold to a collection agency and they have contacted you for the remaining amount.
Colin |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Post subject: RE: Car repossession |
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Hi Blaze,
It can be either the collection agency trying to retrieve the unpaid loan balance from you. Or else, it can be the auto loan servicing company who has taken the responsibility of collecting payments from the borrower. That is, it is quite possible that your loan company has sold the servicing rights to another company.
But as far as I know, once the car is repossessed, there should not be any collection of payments.
Thanks,
Sara.
_________________
Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020 |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1609
Location: MASSACHUSETTS
150.97 Dollars($)
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Post subject: RE: Should borrower pay after car repossession? |
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Hi Blaze,
State laws vary as far as car repossession is concerned. Some states allow the creditor to repossess the car legally without going to court or warning the borrower in advance. The creditor may also sell the contract to a third party, the assignee, who has the same rights as the original creditor.
But the possibility of repossession should be specified in the loan contract for which you have cosigned. And, as per the terms and conditions in the contract, the borrower may have to pay additional money to the creditor to cover the cost of repossession (especially the costs of selling) and of the depreciated value of the car as it has already been used by him. But if the borrower does not pay, then being a cosigner, you will have to make the payments.
If the contract does not mention repossession, do ask the borrower to contact an attorney for further advice and if it already mentions, then either he or you will have to pay.
God bless you
For MortgageFit,
Samantha.
_________________
Know how to compare lenders with mortgage booklet |
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pineneedle
Guest
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Post subject: charged off debt and delinquency after charge off |
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my creditor charged off my account back in 2002,but the creditor is still
reporting a charge off as follows:charge off as of nov 2005 sep 2005,aug 2005,jun 2005,may 2005,mar 2005,feb 2005,dec 2004,feb 2002 to nov 2004.these delinquency were reported in my january 2006 credit report.
can the creditor do this after the account has been chared off? |
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colin
Moderator
Joined: 30 Jun 2006
Posts: 582
Location: Waltham, Massachusetts
112.65 Dollars($)
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Post subject: |
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Hi,
A charge off is done by a creditor when there is non payment for more than 180 days. But you still owe the debt. Charge off is normally a procedure of accounting in creditors part where any uncollectable debt is reported for tax purposes as loss.
The charge off does show on your credit report for seven years after your first non-payment.
Thanks
Colin |
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shelley
Guest
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Post subject: i have a charge off on a van that ipaid off and traded |
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| now the bank has chrged off the account and has given it to nes which is a collection agency. They say that if I don't pay the full amount they are going to sue and collect property. can the collection agency do this? or with they know turn it over to a lawyer. and what property? |
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steichen
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| Shelley, depending on which state you are in if the SOL period has elapsed then they cannot get a judgment against you. |
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shelley
Guest
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Post subject: |
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| how do I find out what the sol period is for kentucky? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Post subject: RE: statute of limitation period |
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Hi Steichen,
Welcome to the forums.
Statute of Limitations (the legal time limit after which debt collection expires) varies from one state to another. Most unsecured debts expire within 4 to 6 months after the debtor defaults. But debts like federal student loans and state and federal taxes never expire.
Thanks,
Sara
_________________
Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020 |
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adonis
Joined: 22 Oct 2005
Posts: 10258
Location: ALASKA
1044.81 Dollars($)
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Post subject: |
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Steichen,
Statute of Limitations for judgments could be as long as 20 years.
_________________
Procrastination is the enemy of your financial success |
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LINLIN
Guest
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Post subject: LIEN ON PROPERTY |
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| I HAVE A LIEN ON MY PROPERTY. MY CREDIT REPORT SHOW THAT THE DEBT WAS SATISFIED (2002). HOWEVER, THE LIEN WAS NOT REMOVED |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Post subject: |
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Hi LINLIN.
Welcome to the forum.
Have you paid off the lien? If you have not taken any proof that you have paid it off?
See if you have not paid the lien then pay it off and ask them to release certificate. But if you have paid it off or don't recognize the debt then you can send them a debt validation letter.
Feel free to ask if you have any further questions.
Best of luck.
Larry |
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Nykolos
Guest
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Have any of you had success in getting charge-offs removed from your credit report by Credit Repair agencies?.... I'm giving it a try right now.
I'm not sure if contacting the collection agency is the right approach, I would think things would only get worse... They would require all updated information about you + run a new inquiry on your report.
Nick |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Post subject: |
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Welcome Nykolos.
I feel credit repair agencies are not too good. Charge off doesn't mean that the loan is forgiven, So if you can pay it off. By the way how old is the debt?
_________________
Good is the Enemy of Great. |
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