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Posted in Auto Loans
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Sanw925

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Closed santander account, still making monthly payments??
Hi, I have a loan with santander that went to the repelvin department for about $1800. I paid the amount due before they came and got the car, and im still making monthly payments on time now that im back working. On my credit report it shows as closed.I called them they said it will cont. to show that until the account is paid in full. Is this correct This has hurt my credit tremendously. What is my recourse for this?

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It appears that when they sent it for collection, they closed your account and demanded payment in full of the amount.   While you still have the car and making payments, they are allowing you to continue the payments under collections.   This is the same as making payments on a collection which as a balance.  The only recourse under this scenario is pay the car off as quickly as possible.      The negative hits for the late payments has the most impact on your score and will remain for 7 years.  As for the closed account, consider it a blessing that it is only reflected as closed and that a subsequent collection account has not been reported by

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When a car is repossessed, it is sold at auction.  If the amount received is less than what is owed, you still owe the balance.  I do suggest you read the articles on this site so you can understand how credit works so you can avoid future credit troubles. 

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