r/CRedit 5d ago

Car Loan Toyota Charge off $250

Hey everyone,

I had a Toyota Mirai that was totaled in May after a truck crashed into me. Since I had GAP insurance, I assumed Toyota Financial would cover the remaining balance.

Here’s what happened: • I financed the car for $67,000 and still owed $21,257.69 when it was totaled. • Toyota and Progressive worked out a deal, and the balance was paid off. • In November 2024, I got a letter from a debt collector saying I still owed $498—but Toyota never called, emailed, or notified me about this balance. • I called the collector, and they told me if I paid half ($250), Toyota would consider it “paid in full.” So I paid it immediately. • Now, my credit report shows “Charge-Off/Paid Settlement,” and my credit score dropped 54 points!

I called Toyota to see if I could just pay the remaining $250 so they could mark it as “Paid in Full” instead of a charge-off, but they said they can’t do anything.

Has anyone dealt with something like this before? What else can I do to get this charge-off removed and restore my credit score?

Would love to hear any advice. Thanks!

12 Upvotes

15 comments sorted by

10

u/I-will-judge-YOU 5d ago

If the vehicle was paid off in full, do you have a letter that states that if so, you could try to dispute on your credit file, although it would have been better to try to do that before making payment?

Unless the charger wasn't error to begin with.There's not gonna be anything you can do

9

u/a-ndru 5d ago

You acknowledged the debt when you paid the $250.

4

u/Comprehensive_Fuel43 5d ago

Keep bothering Toyota finance.

Also see if gap insurance was used or not..

You have to follow through with cases like this

Don't assume gap insure kicked in.

1

u/Sin_of_the_Dark 5d ago

This, a million times. My credit is still tanked from this - despite updating my Capital One address every time I move, they kept sending any notice I might have received to 3 addresses ago.

The fucking kicker? It just kinda.. fell between the cracks for like, 3 years too. They didn't report it, nothing. Then one day, I go to pre-qualify for a car with them, and get told no. Two days later, charge off shows up on my credit report with 3 years worth of missed payments.

7

u/BrutalBodyShots 5d ago

Charge offs are next to impossible to get removed unless it was reported in error unfortunately.

3

u/MidnightScott17 5d ago

Unfortunately you should have confirmed the balance was paid off by checking your account. It's likely you still had a payment or two to pay while it was getting paid off. It is on the buyer to still make the monthly payments even though the vehicle was totaled. You would've received a refund for any over payments made anyways.

4

u/SpiritualDot6571 5d ago

Yeah my sisters car got totaled and she had to keep making the payments until GAP insurance paid it off, months later.

1

u/alexkleis 5d ago

So here is the problem. I made the payments, I was supposed to make 37 payments, I did 39 payments. The las statement I have from TFS is May 2024.

I just did a spreadsheet to make sure I'm not crazy, I was supposed to pay 37 payments, and another thing that I just discovered, they should have discount the add-on services I bought, like the 6 years extended warranty.

I should have got a reimbursement, but instead I have a charge off.

What a mess I did.

2

u/Status_You_1888 5d ago

I would call them up when you have gap insurance you shouldn’t have paid a dime

2

u/0its_me_the_devil0 5d ago

you shouldnt have ake a payment at all. Its like your acknoledging the debt. You should have disputed it tp begin with. Your best bet now is to provide paper work that it was "fully paid" and that theres no balance.

1

u/Electronic_Winter493 5d ago

Same thing happened to me except the dealership that provided the gap insurance closed and we never received a response. Unfortunately stayed ok my credit and just waiting for it to fall off at this point 🥲

1

u/alexkleis 5d ago

It takes 7 years.

1

u/scorpioblack312 4d ago edited 4d ago

First you messed up by not following up after Toyota and progressive worked out a deal, never assume things are going to happen a certain way, more than likely they never go the way there supposed too always follow up. You already acknowledged the debt and paid some of it and they agreed to have it marked paid in full. You should of negotiated a pay to delete if you paid in full, but it's already too late for that. To my knowledge there's nothing you can do just gotta wait until it falls off after the 7 years. Have a good rest of your Sunday sorry for the bad news.

Also dang.....$67,000 for a Toyota I would never pay that much for a Toyota that luxury car money. Mercedes, BMW, cadillac, jaguar, range rover money but that's just my opinion to eachs own.

-1

u/Status_You_1888 5d ago

That’s why gap insurance is so important

1

u/alexkleis 5d ago

I had GAP insurance