How to keep the car when an auto loan is charged off

Submitted by justin.oscar on Wed, 06/03/2009 - 07:48
Forums

Your car loan is charged off when you have been delinquent on your account for 180 days. The lender writes off this debt as a loss, as they realize that the debt won't be paid. An auto loan charge-off is a negative mark on your credit report and it hurts your credit score. A loan charge-off does not mean that the loan has been forgiven, and you are still obligated to pay the debt. The interest and late payments will continue to accrue. Generally a charged off debt is handed over to a collection agency.

Can you keep the car after charge-off?

You can keep your car after the charge-off only if you pay off the debt. The lender won't release the lien on the car until the loan is repaid. The car can be repossessed if you do not pay off the debt. Even if the lender does not seize the car, you won't be able to sell it or refinance it. Moreover, you are still liable to pay off the debt even though you have lost your car.

However, repossession laws differ according to the state you live in. Thus, you need to know your state law regarding car repossession. Some states allow the lender to seize your car without notice at any time after you fail to make the payments on your car loan. But, most of the states have a breach of peace regulations on car repossession. If the individuals repossessing your car commit a breach of the peace while seizing your car, your lender may have to pay a penalty and the repossession may be temporarily halted.

How to handle an auto loan charge-off

If you want to keep your car and remove the charge-off from your credit report, you will have to negotiate a payment plan with your lender. Make sure you get the payment agreement in writing. Once you pay off the debt, you may get the car back. As for the charge-off, you will have to negotiate a Pay for delete Agreement (PFD) with your lender to remove the charge-off from your credit report. A charge-off will be considered a negative listing on your credit report, which will cause creditors and lenders to deny you credit. Therefore, it is better to try and remove the charge-off with a PFD if the lender will agree.

The best way to prevent your car from being repossessed is to repay the loan. There are several options, like a loan modification agreement, available to consumers who wish to keep their vehicles.

Maverick Jones (not verified)

I never believed a hacker can fix my credit (delete negative items such as debts, IRS and Liens etc.) and also boost my credit score until I came in contact with DEBOOTH CREDIT SOLUTION. To cut long story short, a colleague of mine told me about them and their expertise and how they helped fix his credit. I emailed them via DEBOOTHCREDITSOLUTION@GMAIL.COM and explained my credit issues to them. To my greatest surprise, my credit score was upgraded from 480s to 786, and the negatives in my profile all wiped. I advise anyone with credit issues to contact him cos there’s nothing as having good credit. Text: (562) 281-7621. Trust me you’ll never regret it…

Wed, 04/03/2019 - 13:47 Permalink
gigi (not verified)

My car has been charged off but I still have the car the repo people are looking for the car I have a verbal agreement with the lender but I don't trust them what do I do

Mon, 04/08/2019 - 15:36 Permalink
Bridget (not verified)

Hi I lost my car cause I couldn’t pay my loan off an they cMe an got it the other day but I’m reading this how could I go by getting my car back really soon?

Sun, 04/14/2019 - 14:05 Permalink
Bridget (not verified)

Hi I lost my car cause I couldn’t pay my loan off an they cMe an got it the other day but I’m reading this how could I go by getting my car back really soon?

Sun, 04/14/2019 - 19:50 Permalink
Victor Ocean (not verified)

Victor Miller Ocean Arizona USA I’m here to testify about Debooth Credit and their expertise and to also thank them for restoring hope of owning a house. To be honest they are extraordinary when it comes to handling credits related issue. I’m still wondering how they managed to delete IRS and delayed payment from my report within a short period of time. I’m yet to see frustrating inquires and other negatives in my profile. My fico was increased by 200 points in two weeks and in less than a month I bought a house after waiting for six months. I’ll recommend them for anyone who’s facing credit issues you’ll never be disappointed. Contact them using mail or text: DEBOOTHCREDITSOLUTION@GMAIL.COM +1(562) 281-7621.

Sun, 04/14/2019 - 23:58 Permalink
samuel Burrow (not verified)

My Bankruptcy went through and the company went on and did a charge off what else can I do?

Tue, 04/23/2019 - 21:09 Permalink
Don (not verified)

I got into some trouble and had to go to jail for 82 days during this time they did a charge off of my vehicle. I’ve been paying on it for five years and I only old that month that I went into jail but when I got out and talk to them they said it was charged off. I need my car and I’ve been paying five years and I still have my job of 15 years. What can I do? I don’t have a lot of money but they told me I could try to refinance it and they will do it for $6000 less Than what I owe. I’m not sure what to do

Wed, 05/01/2019 - 20:10 Permalink
ca.aranda.13@g… (not verified)

I live in Ohio. The bank sent my balance to a collection agency already and they said they dont want the vehicle back so am I able to get the title? Or what should I do?

Mon, 05/06/2019 - 18:39 Permalink
shaquita simpkins (not verified)

my car was repossessed the fine was paid and my car was redeemed back to me and is currently in my possession. my car note is now due and I have been diligently working to pay my bill unsuccessfully. I really need a better paying job. do you know of any avenues that can help me pay off my car loan in full.

Wed, 05/15/2019 - 23:18 Permalink
KarenB586 (not verified)

I was contacted by a collection agency that informed me that they were now new owners of my debt and that I have 30 days to respond for payment. Approx 10 days later my car was repossessed by the original lender of the loan. I informed them of the letter I received and I was in the and they told me that they were going to resend the loan from that company since they were now in possession of my car. My 72 months loan agreement came to term 2/6/18 with my scheduled final payment but then there was a small balance left. What are my rights?

Tue, 05/21/2019 - 01:12 Permalink
Michael Simko (not verified)

Hello! I just discovered my Toyota Financial Services auto loan was charged off March 29th, 2019, per my Credit Karma report. I did make a car payment plus $15.00 to make it an even $300 on March 12th, which I thought would have kept me at the 2 payment behind status..Currently, I am injured and unemployed. Anyway, Do you think I can still negotiate with Toyota Directly? So, far I haven't been contacted by them or a collections agency. I'm very worried about dealing with a nasty collections agency. I'm hoping Toyota would accept a settlement amount (which I'm not sure what a standard settlement would be? The amount charged off was $5,300). I believe the pay off amount was $4,200 back in March. Do you think they would settle for 50 % and let me pay in 6 payments? Is this unrealistic? Or is it possible? Looking for some advice. Thank you so much!!

Wed, 05/22/2019 - 01:56 Permalink
Michael Simko (not verified)

Hello! I just discovered my Toyota Financial Services auto loan was charged off March 29th, 2019, per my Credit Karma report. I did make a car payment plus $15.00 to make it an even $300 on March 12th, which I thought would have kept me at the 2 payment behind status..Currently, I am injured and unemployed. Anyway, Do you think I can still negotiate with Toyota Directly? So, far I haven't been contacted by them or a collections agency. I'm very worried about dealing with a nasty collections agency. I'm hoping Toyota would accept a settlement amount (which I'm not sure what a standard settlement would be? The amount charged off was $5,300). I believe the pay off amount was $4,200 back in March. Do you think they would settle for 50 % and let me pay in 6 payments? Is this unrealistic? Or is it possible? Looking for some advice. Thank you so much!! mikesimko1@yahoo.com

Wed, 05/22/2019 - 01:58 Permalink
andrea long (not verified)

mylender mark my vehicle as a loss of debt and write off what should i do i need to keep my car

Tue, 06/04/2019 - 20:27 Permalink
jodie (not verified)

If a lender closes my account marks it as a charge off on my credit report and i still have the car, can they still come repossess the car?

Sat, 06/08/2019 - 10:21 Permalink
SallyJones06 (not verified)

If I entered into a a settlement but need to redo it due to a hardship issue is this possible?

I entered into a settlement to pay off a charged off car loan but I won't make the agreed time frame, is it possible to make another agreement and have time to pay if off?

Mon, 06/17/2019 - 17:12 Permalink
Patricia Gogo (not verified)

Loan was but in bankruptcy and my car was collateral. I tried to get Experian to but it on credit report as being paid but it said it was all taken care of.so do I still have to pay them .So is my truck still there collateral

Thu, 06/20/2019 - 13:30 Permalink
Sophia Ambrose (not verified)

I never believed that ACTION CREDIT SOLUTIONS can help me get out of my huge debts so fast, my student loans and other debts of about $135,000 incurred have been completely wiped out. I’m so much in love with this ACTION CREDIT SOLUTIONS for giving me my life back. They gave me a clean credit profile and also increased my Fico score to 786. I contacted them through this email and number; ACTIONCREDITSOLUTIONS@GMAIL.COM / +1 (737) 201 -7316. You can as well reach them if you have similar issues. Good luck!!!

Mon, 06/24/2019 - 06:25 Permalink
Tracy (not verified)

I currently have a car that I was financing this company was charging me 233% interest rate robbing me I've already paid2900 into this loan and they say I still owe 4717 the blue
book value is only 2100 and now they are trying to reposess it is that legal

Mon, 06/24/2019 - 21:24 Permalink
Michael Tobe (not verified)

I have made 70 payments of 72 been having financial and health problems 4 months past due will they still repo my car

Mon, 06/24/2019 - 21:34 Permalink
Joanne (not verified)

Hi i have a question so i have a car with driverime and my loan is coming to a close in august like maturing and i been paying but i still owe 7,100 what should i do

Tue, 06/25/2019 - 12:52 Permalink
Angel Jomenez (not verified)

Hey, I have a car that the account has charged off. I have called the bank to see if we could work out payment plan. The bank says they only have one payment plan that could be consider since I only owe 9 thousand dollars and a few hundreds. Here is the catch the payment plan is to pay $3000 and change a month for three month and I have explained to them that plan is not reasonable. I'm not trying to keep the car for but Im also whiling to pay it off. What should I do?

Thu, 06/27/2019 - 09:17 Permalink
Tara L. (not verified)

I am looking for information on how to keep my car since it has been charged off. It has not been repossessed yet. I read the information that you have written on page 1 that mentions a loan modification agreement. It also mentions that there are other options but page 2 and beyond does not have any info. So what are my options and how do I go about completing them? Thanks in advance, Tara

Thu, 07/04/2019 - 14:18 Permalink
Adrian Seales (not verified)

Hi Carol,
Asking how would I go about getting a loan modification from the lender(Wells Fargo)?Car loan:$20,000.00+.Would like to hear your thoughts on the matter.
Best Regards,
Adrian Seales

Sat, 07/06/2019 - 04:05 Permalink
Melissa1527 (not verified)

I haven’t paid my payment in five months they have not found my car it is in charge off status will they still try and repo it

Sat, 07/13/2019 - 03:13 Permalink
RENAE (not verified)

I live IN FLORIDA ALL I WANT IS TO KEEP MY CAR MY COMPANY DOWNSIZE AND THAT IS HOW I GOT BEHIND I have tried numerous times to make arrangements with the lender but they
always want a large sum of $$ before they will even talk about anything
i dont know where to turn im back working I can make payments can you please advise or tell me who tto call that can help me

Wed, 07/17/2019 - 07:49 Permalink
RENAE (not verified)

I live IN FLORIDA ALL I WANT IS TO KEEP MY CAR MY COMPANY DOWNSIZE AND THAT IS HOW I GOT BEHIND I have tried numerous times to make arrangements with the lender but they
always want a large sum of $$ before they will even talk about anything
i dont know where to turn im back working I can make payments can you please advise or tell me who tto call that can help me

Wed, 07/17/2019 - 08:04 Permalink
RENAE (not verified)

I live IN FLORIDA ALL I WANT IS TO KEEP MY CAR MY COMPANY DOWNSIZE AND THAT IS HOW I GOT BEHIND I have tried numerous times to make arrangements with the lender but they
always want a large sum of $$ before they will even talk about anything
i dont know where to turn im back working I can make payments can you please advise or tell me who tto call that can help me

Wed, 07/17/2019 - 08:15 Permalink
christinanavarro704 (not verified)

Hi if a car waa in acciedent and tags are due do i still pay them::g::f:::

Thu, 07/18/2019 - 07:07 Permalink
Vincent (not verified)

I really appreciate CONFIDENTIAL CREDIT SOLUTIONS for removing all the negative items on my report.
When I was applying for loans for my most recent investment property (my third property including my home),
my score was in the mid-400’s. I had 4 late payments, which hurt me dearly,
but the lenders actually looked at my report and refused me a loan, so I emailed:CONFIDENTIALCREDIT2424@GMAIL.COM
he removed all late payments, and raised my credit score up to 785 in 2 weeks.
I was indeed pleased. You can call or text him via +1(289) 277-0463

Thu, 07/18/2019 - 11:57 Permalink
Lynn505 (not verified)

I live in New Mexico. My vehical was repoed 2 days ago and the lender said it was 120 days delinqent and charged off. No other negotiations are considered other than paying off the loan amount in full. And it will be auctioned in 2 wks. I am besided myself. Did I not ask the right questions? When talking to them?

Wed, 07/24/2019 - 19:57 Permalink
ginuwine69@yahoo.com (not verified)

What is a loan modification agreement

Wed, 07/24/2019 - 21:27 Permalink
Toshiba carter (not verified)

My car was repossessed recently.if i have a charge off on my vehicle what are some other options do i have in getting another car.i have been at my job for 6 months

Wed, 07/24/2019 - 23:20 Permalink
hALIMA (not verified)

wHAT IS THE OWNER GAVE ME THE CAR, THEN PASSES AWAY SEVERAL MONTHS LATER, BEFORE CAR WAS PAID OFF?

Thu, 07/25/2019 - 06:13 Permalink
Anita (not verified)

What if I am still making the payments on my car even though I have gone pass my maturity date, can the lender still repossess my car?

Sat, 07/27/2019 - 13:46 Permalink
Eldy William (not verified)

Email PROHACK.NET@AOL.COM , CALL/TEXT VIA +1(252) 307-3167 for perfect CREDIT REPAIR.
Guys, am not suppose to say this, but it’s my TESTIMONEY, My else frustrated me last year, she has clubbing habit and her wants was too expensive, before I realized myself, her much demands affected my CREDIT REPORT my SCORE that was 760s reduced to 380s. If not for my neighbor Mrs. Lily who recommended PROHACK.NET@AOL.COM to me, I would have been a CREMINAL because I can’t even afford my bills. ASAP I contacted him (PROHACK NETWORK) via +1(252) 307-3167 I was in touch with the CEO Mr. Scott; he assured me that his going to put smiles on my face and the repair is going to be a permanent one. Ladies and gentle men, as I publish this review my CREDIT SCORE is now 780, he fixed my bankruptcy, eviction, judgment, late payment, clears all my credit card debts, in fact he removed all negative items in my Report and increases my FICO Score. I recommend PROHACK NETWORK to you guys because I understand that so many people are also facing this challenges. Please contact him ASAP he can do it for you. Good luck.

Sat, 07/27/2019 - 16:36 Permalink
Mike25 (not verified)

Hello Carol,

I have a 4 year old vehicle that I was unable to pay for, the bank has not taken the vehicle back after a year of not paying the loan. The Bank charged off the loan and has no interest in taking back the vehicle, which is hard to understand. what can I do with this vehicle, it has not been driven in a year.

Thanks,
Mike

Thu, 08/01/2019 - 10:47 Permalink
acsmith1972 (not verified)

Chase told me they only accept payment in full or the car, no negotiations are possible.

Fri, 08/02/2019 - 16:33 Permalink
Ava Ryan (not verified)

PROHACK.NET@AOL.COM, / +1(252) 307-3167 have a proven process for repairing bad credit. Whether you are looking for complete credit repair services or just credit counseling, he can help! His credit repair services are personalized to help you remove all negative items on your report and rebuild your credit. Having better credit means more options and, when it comes to making big purchases in life, options are what you want. He fixed my credit and increased my score to 745 in as little as 7 days, making his credit repair service the fastest way to rebuild your credit score and help you get back on track with your finances. PROHACK NETWORK also provides a free consultation to review your options and explain how credit repair works. Give him a call today and he will put a smile on your face as he did mine, good luck.

Sat, 08/17/2019 - 18:17 Permalink
Theresa D (not verified)

My vehicle is collection/charge off status. I get calls if I fail to make the payment that was negotiated but nothing has ever been sent in writing just by mouth. I try to make as much as I can. Could my car still be repossessed?

Thu, 08/29/2019 - 13:26 Permalink
Lisa kast (not verified)

If your car has been charged off and they receive a payment after. Can they accept that payment?

Thu, 08/29/2019 - 19:29 Permalink
aaronburns (not verified)

Hello I have a car in repo status and the bank said it is charged off can I get it refinanced and keep the car

Tue, 09/10/2019 - 00:14 Permalink
Brooke (not verified)

Hi,
I'm wondering if my boyfriend's car is still eligible for repossession. He bought it in 2013-2014. Idk exactly what events took place during the years surrounding the purchase of his car but whatever happened the loan was charged off (as far as I know). So it's been 5-6 years now. Can the vehicle still be repossessed? What happens when a loan/account is charged off?

Mon, 09/16/2019 - 18:02 Permalink
rachelusa49@ya… (not verified)

A repo man came got my car, dont no who got it..but they didnt even contact me and I need to pay the debt, but dont no who has the car now..

Thu, 09/19/2019 - 02:46 Permalink
Sophia Lei (not verified)

Hello,

My question is, how can a creditor charge off a debt while I'm in an active bankruptcy after the creditor filed a proof of claim?

Fri, 09/20/2019 - 00:37 Permalink
Lindsay Randle (not verified)

I had a vehicle to be charged off and it was recently repossessed, will it go from charged off to repossessed on my credit report?

Sun, 09/22/2019 - 03:10 Permalink
tammy Milton (not verified)

hello, my car is charged off but the bank went out of business. I called the other company but there isn't a file at all .. What should I do

Thu, 09/26/2019 - 21:43 Permalink