auto loan went to collection

Sorry, i checked my credit report the first time in 2001, then again in 2006 only to find out it was charged off, not written off. The original loan holder says they don't have any information on my acct, at all- now, 5 years later i read a collection agency has had it. What now? And why no calls, letters?

It seems that the bank has sold the debt to the outside collection agency. They would have been able to give you information about your account if the account would have been with them.

Call the collection agency and verify if they are having your account details in a proper way. They must give you all the necessary information about your account in writing including a copy of the contract signed with your bank. The total amount along with the interest charges should be clearly mentioned in the paper. Review it properly before making a payment agreement.

In the details, if you believe any item to be disputed, mail a letter to the CA requesting verification. They must not call you before the item has been fully rectified.

How long ago was this account opened? As per the FCRA laws, negative information stay in the credit file for 7 years only. Since this account is nearing the period, it is about to be off from your report. Give a thought before you make a payment. However, since the debt is secured by your car, they might force you to make the payment if you want to keep the car.

I took the loan out in 1996, then in 2000 i was late on 3 payments and they sent the tow trucks out, i cleared that up, then in 2001 it was written off. (so i read)and then this year 2006 they say written /charged off to 'academy collections' i was also sent a title with the bank as a lien holder, lately i've been seeing alot of tow trucks around my area, and i'm worried (bad timing $$)but nobody has mailed me anything, or called, so i'm kinda reluctant to call, and like you said about 7 year credit file, i'd like to hold out, can they (collections) send tow trucks out? Or just want the $ ? I wish i never would have looked at my report, i was just fine thinking it was written off,and the bad credit that went with it.

Collectors will send the accounts back to the creditors who in turn will take further actions. Collectors can only insist payments from you if the debt has not been sold to them. This account is nearing the 7 years mark, so in terms of your credit report, future lenders won't be able to see it in the future. If a payment is made, it will be reported back in your file. Talk to the original company and see if you have any options.

hello, how can I find out if the debt was sold to the collector. My credit report has the original bank saying it was "written off". I looked at all the negative reports, but couldn't find a match to the amount owed. why do some say "written off" and some are "charged off" and some are "written/charged off".

Sherrie

Written off status appear in the credit report when your creditors have found the accounts to be in defaults. They either charge it off or write off as a loss and sell the account to the collection agency. This is a negative remark and will stay in the file for 7 years. If you pay it in a later stage, this will be shown as a ???paid charged off' account. You might not be able to make the arrangements with the creditors after the file has been sold.

Talk to the company having your accounts. Know its actual status before making any payment agreement. Request them to send it in writing so that you can review it. Sometimes, the charged off accounts go out of the SOL period as per the state laws. If the debt is out of the statutes in your state, you won't be legally forced to pay them and no actions can be taken against you. But if you consider paying it, your credit will improve if it is far from the seven years reporting period.