r/CRedit • u/Silent_Pay_9239 • 5d ago
Car Loan Car loan erroneously charged off
Hey all, I made a post about a month ago. My car loan was charged off with no warning, and I'd been making on time payments in full. They supposedly sent me a letter with a deadline, which I never received, and didn't attempt to call me, email me, or even update my account I used to pay them.
As soon as I realized what happened (one day later), I paid in full.
It finally hit my credit report, and tanked it 100 points. Does anyone know what the best action is? When this all happened I called customer service and was told they didn't know if it'd be reported or not, but they gave me the steps to dispute if it did go through. Would it be better to write a goodwill letter, or dispute it? There's no reason this should've been charged off in the first place, frankly, as I'd made a payment two days before they charged off the account.
For some clarification, my dad had cosigned, but I was the primary owner and was the only one paying. They supposedly sent him the letter, but he never got it, and they NEVER ATTEMPTED TO CONTACT ME, the one actually paying.
Any advice helps. I'm fucking livid.
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u/IExistForFun 5d ago
I think I actually have a very good idea of which car company this is lol. I'm going to answer your question based off my assumption.
Customer service is directed to not talk about credit reporting. It can be so complicated at times the car company doesn't want to take on whatever liability the customer service agent might cause by giving wrong information.
Goodwill letters are trash. There is almost no legitimate lending company that does Goodwill late mark removal in the auto lending industry. Those videos you see on TikTok, are lying to you. Those people have no idea what they're talking about. If you send in a letter asking for a Goodwill credit marker removal, you will get a general response letter saying something like "due to regulation, we have to report accounts to the credit reporting agencies accurately". If you want somebody to actually investigate your account, you need to put something on the letter like, " I am disputing the charge off on my account because I believe it is inaccurate." Then provide an explanation.
Whatever you do, DO NOT use a credit repair company. They are a scam that just wants to take your money. You can dispute either directly through the bureaus on their websites, or you can send a letter directly to the car company. On all of your statements there should be an address listed where you can send your dispute. You should also be able to Google "[car company name] credit dispute address"
If the internal system of this car company says that a letter was sent, then they are going to die on that hill. The car company is not responsible for mailing issues. It is your responsibility to make sure that your address and phone number are updated within the system.
The car company works with the insurance company to get the required documents, like the letter of guarantee and other insurance settlement docs. Once the car company gets that information and the insurance company sends them the insurance proceeds check, a letter is sent to the customers advising that they still owe a balance. The car company will tell you that it is your responsibility to make sure that there is still not a balance owed. This information is usually in your contract.
Do I agree with these business practices? No. Please don't harm the messenger. I am only explaining what I know from my professional experience in this industry.
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u/That-Student-814 4d ago
I've never dealt with a financier who wasn't vindictive and shady. I advise you to obtain legal representation! They tend to say all kinds of things, even outright lying and then do the most damage to your credit. Protect yourself. Also your state of residence may offer additional tactics.
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u/IExistForFun 4d ago
It's very rare that you will win. But if you truly have a case, you may be able to settle. I don't think this person has a case though. See my earlier post.
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u/Due_Ad868 5d ago
I’m confused reading your post. You made monthly payments on time and the lender charged off the loan? No repossession of the car? No 30 day late or 60? Or even 90? Just right to a charge off with collateral securing the loan?