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Collection on WFS Charge Off


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I'm new here but have been reading a lot for several months. I am into my first round of my letter writing campaign. I have a WFS account that is being reported to all 3. On 2 it shows a balance of $7333.00 Charged Off/ Paid Profit and Loss. On one it shows $13883.00 Open with $945.00 past due. I just received a collection notice from Mercantile Adjustment Bureau trying to collect $8515.99 with a settlement offer for $6045.35. How should I handle this one? I thought that once the OC had used the debt in a Profit / Loss that they could no longer collect. Am I totally off base here? Also what about the discrepancies between the credit reports? Thanks for any help on this one.


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II thought that once the OC had used the debt in a Profit / Loss that they could no longer collect.

No...the key phrase is "Write off / sold to another lender" with a balance set to $0. Until that appears (or something very close to it) the OC still owns the debt and might continue to charge interest and penalties. The "charge off" term is misleading, and really just means they're playing accounting tricks with their P&L.

Also what about the discrepancies between the credit reports?

Quite normal. Each CRA gets data a little differently and on different reporting cycles. And, not all creditors report to all CRAs. And, one CRA does not care what the others are reporting (they are after all separate companies and each is oh so much better than the others). That's why its important to check all CRAs and dispute each one individually. And, another reason why the 3-in-1 reports are often wrong.

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When a credit card company list the debt as charge off that is simply an accounting term that they are required to use. Now if the items has been sold to another lender then your reports should show this. A "0" balance and notation closed/sold to another lender/paid. But be careful you still owe the debt technically if the statue of limitations has yet to run out. Check with your state's Attorney Generals office consumer division to find out the statue of limitations on debt in your state. If sol has run out you are in the clear,but be careful junk debt buyers count on people not knowing about sol and prey on them. Simply send them a debt validation notice that should stop them,and also make it clear the debt is fictitious and out of statue and you will tell the judge in small claims court they violated the fair debt collections and practices act. Now if I am uderstanding you the debt is not being listed as sold yet and still your getting letters from a junk debt buyer dont deal them under any circumstances, only the original creditor, call them if they tell you the debt has been sold, tell them to update your credit reports. Then once your reports are updated to show the true status of the debt then you can negiotate a payoff with the collection agency but do this if the debt is fairly new meaning less than 2 years old. If more than 3 years old not worth it the damage has already been done this item isnt hurting your score anymore than it already has. Remember you must get everything in writing from them you will not send them a dime until you have a written agreement on payment and how the debt will read on your credit report,you"ll only accept "paid" or "settled" if they are reporting it(of course if the collection isnt on your report dont bother simpy ignore letters from them) but remember they might try to sue dont get scared there is nothing to fear. Simply do like I said and send them a debt validation notice your making them prove to you that you owe the alleged debt and you will make it clear that they didnt validate the debt before filing a court case and you will tell the judge this. This statement is important and will scare them into pulling the case out of court if it gets that far!

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Thanks for the replies. Here are the items that are in question.



Irvine, CA 926183816

Account Number: 51771001XXXX Current Status: REPOSSESSION

Account Owner: Individual Account. High Credit: $20,775

Type of Account : Installment Credit Limit: $0

Term Duration: 72 Months Terms Frequency:

Date Opened: 12/2000 Balance: $13,683

Date Reported: 12/2006 Amount Past Due: $948

Date of Last Payment: 03/2004 Actual Payment Amount: $0

Scheduled Payment Amount: $465 Date of Last Activity: n/a

Date Major Delinquency First Reported: 05/2004 Months Reviewed: n/a

Creditor Classification: Activity Description: n/a

Charge Off Amount: $0 Deferred Payment Start Date:

Balloon Payment Amount: $0 Balloon Payment Date:

Date Closed: Type of Loan: Auto

Comments: Involuntary repossession,




WFS FINANCIAL #51771xxxxx

PO BOX 19752

IRVINE , CA 92623-9752

(949) 727-1000

Balance: $0 Date Verified: 05/2004 High Balance: $7,710 Past Due: $0 Terms: $465 for 72 months Pay Status: >Payment After Charge Off/Collection< Account Type: Installment Account Responsibility: Individual Account Date Opened: 12/2000 Date Closed: 05/2004 Loan Type: Automobile Remark: >Paid profit and loss<

Estimated date that this item will be removed: 04/2011





Account Number: 51771001XXXX

Acct Type: Auto Loan

Acct Status: Closed

Monthly Payment:

Date Open: 12/1/2000


Terms: 72 Months

High Balance:


Past Due:

Payment Status: Charge-off



Should I just leave these alone or dispute, verify, ?

Thanks again.


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Okay...a repo is a slightly different animal. Did you receive any notification of a "defincieny" (wish I could spell)? What's supposed to happen is they take the car back, sell it, and then come after you for the difference. Also, the loan papers you signed in the first place would have some verbage as to their right if you default.

If your intent is to get this off your CRs...probably aint' gonna happen if you wound up owing them money...

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  • 3 weeks later...

Update: My files have all been updated and now show $0 balance $0 past due. However, I received a collection letter from Vital Recovery for this account saying I owe them $8515.00. I sent DV on Jan. 5 have not received "green card" back yet. The problem there is I received one green card back recently that was torn in half and ended up in Ocracoke, NC many many miles from me, lol. Luckily there was enough of the certified mail receipt number left to match it to who it was sent to. I have started receiving calls from Vital Recovery over the last few days. They call and there is noone there. I inadvertantly answered the phone last night w/out looking due to my son just having had surgery yesterday and instinctively thought it was my wife calling. You guessed it Vital Recovery. I told the guy that I had sent a DV letter and also a C&D. He replied, "yeah, we have a letter on file but that doesn't mean we can't collect this debt." I informed him to only contact me by mail as outlined in my letter and to no longer call my home. All he said was "thank you " and hung up. I then get 3 more calls from the same number within the next 1 1/2 hours. How do I handle this? Send another letter? File a complaint? I've got 4-5 mos before SOL is up. I have never heard a word from WFS since the repo, not even so much as a deficiency letter. Now all this just before SOL. Thanks.

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