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Posted in Auto Loans
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JamesM717

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Question about repo and late payment vs. charge off
I'm going to try and make this a short as possible.


I was a co-signer on a repossessed van. I knew it was repossessed but I was never contacted on rather or not the bank received enough money to cover the loan cost during the sell. Everything went to the primary signer who did not feel like passing on this information. I thought everything was ok until someone ran my credit for a mortgage loan. I contacted the bank who said they passed it to a collection agency. The collection agency informed me that the primary signer has no desire to pay... so I set up a settlement agreement (to be paid monthly). I am well aware I am just as responsible even though I was not contacted (which is upsetting).

The only thing holding me back from a home loan is my debt to income ratio. The van is showing I "pay" $479/month although my settlement is $150/month. I called the original lending bank to see if they could just change the monthly payment for me considering I am trying to work out the debit (the debit I was not aware of!).

The bank told me they wrote it was a charge off on the primary signers credit report... but it's not a charge off on my credit report. Then they said I should request that the collection be written as a charge off too on my credit report because it will help my debit to income ratio..... but it doesn't sound right to me at all!

So my question is are they ACTUALLY right? If my only issue is debit to income ratio due to high monthly payments should I request a charge off? To me.. .it doesn't sound like a good deal at all.. but I do not know a lot about charge off or repos because this is a first!

Any help would be great!

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Top Contributor
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You need to contact the collection agency you have the payment plan with to request the charge off. They wont change your report until your plan is paid in full as agreed upon. But you should call and have that written into the agreement.

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