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Question By
lswestsoccer11

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Repossession and credit card charged off. How do i fix it?
Back in 2008 when I was 18 I bought a car and at the same time had a small amount credit card, about 6 months after I bought the car I hit a rough patch, lost my job and eventually had the car repo'd and my credit card went past due. After trying to set up things with capital one and also the credit union they both wouldn't work with me to figure out a solution. My credit score before was a 720 and then it tanked to low 500's. I've managed to get it back to the present day 624 but I'm looking to get the items off the report. I have seen that capital one took the claim to court(I was never informed of this) and also my debt went to a local collection agency. I have the money to pay this off but was wondering what would be the best position to take? With the car repossession I am in a bigger hole as I still owe 11,000 on it. I called a few years back and they said they would not sue and take it off if I agreed to pay 8000 by the end of the week. Because all 20 year old kids have that much laying around while they are in school. Needless to say I haven't been contacted since then. Do I call and see about setting up a payment plan? Do I ignore and let it drop off or dispute the case? Thanks for the help!

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OK,  a few different issues, let me deal with the easy one first, the credit card.  If you know the date the card went delinquent, then you know the date it will fall off your report (7 & 1/2 years from date of delinquency).  If you are near this date, wait it out.  If you decide to pay if off, make a deal with collectors IN WRITING that they will delete the account from your report once paid.  Otherwise, you'll re-age the account and it will stay on your report for 7 & 1/2 years from date you pay it off.

You say Cap One took you to court - was that the car or credit card?  Do you mean you now have a judgment?  If so, you need to write to bureaus and Cap One and ask for "Proof of Service".  No guarantees that will work, but worth a shot.

Car repo - did they sell the car?  If so, they are only able to ask for the amount they are short.  If you bought the car for 10K and they sold it at auction for 5K then you only owe 5K.  Ask for all their documentation regarding the sale of the vehicle.  Also, if they say they have "charged-off" or "written-off" the debt, tell them they can't come after you for the balance because they already reported the charge-off to the IRS as income.  

Hope this helps somewhat, I recommend you visit www.credit.about.com for all questions credit related.  Best of luck!

Reply by
lswestsoccer11

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Capital one was the credit card. As it stands right now on my report it will continue on my report until march of 2016 and it says "721 written off. 1385 past due". sometime after the card got charged off I was issued a civil claim judgement in 2010 from a litigation firm on capital ones behalf for 836 dollars, which will continue on until aug 2017. The credit union had the car loan, and sold the car at auction after it was repossessed. It is scheduled to fall off record in April 2015. I still owe quite a bit of money according to that. Should I just wait on that one? It would likely take me almost a year anyway to save that much money to pay it off. If i contact and ask for proof will that reset the clock? Thank you so much for your help.

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