Late payment questions

[matthewscott]

(Forgive me if this has been asked or if this is in the wrong forum. I haven't found a similar thread with answers to these questions.)

1) If I was making partial payments on an account does that still equal a late payment? A creditor says I was late several months in a row but they just sent me the copies of my statements where I had made at least a payment on each of the statements.

2) We had a car that was a voluntarily repo. Ouch, especially after what I know now. However, the debt is mine and payments have been made after the repo. However, they are reporting that I am 30 days late for the past 18 months. I haven't heard back after I questioned them about it. What should I do next?

Looking forward to your responses.

Thanks.

[kevin3344]

I'm no expert, but here's how I would answer your questions:

1) If you do not make a payment for the full amount as agreed upon in your contract it is considered late. Let's say your payment is $400 and you pay $200. The next month you pay $600, making up the difference. While you paid the $200 "on time" the previous month, it wasn't for the full amount, so that payment is considered late.

2) When a car is repossessed (voluntary or otherwise) it's sold. You are responsible for any difference between the selling price and the loan balance, of course. If I were you I would get a statement of your balance and the total amount owed before paying anyone anything. They are probably accepting the payments and applying it towards your deficiency balance, but how much do you owe? I would find that out fast.

________

Hotksu4You

Edited September 9, 2011 by kevin3344

[matthewscott]

I guess I need to give you some more information. The repo hasn't went to a true CA. It's held by their internal CA instead. I know they sent the car to auction. I do believe they sent me a letter of how the amount was calculated. I would have to look for that. It's been about 2 years since then. As far as the amounts, I believe they do add up correctly. They do seem to be posting payments to the amount that I owe.

I know the debt is mine. However, I don't think it is right for me to make payments and them still show that I am late every single month. The account does seem to be reporting correctly except the lates. The late payments showing up is what is bothering me the most. I sent a letter a couple of weeks ago or so but haven't heard back. I guess I could just send in another dispute letter. If this isn't resolved what should I do?

[Ahntara]

"...still show I am late every single month..."

Sounds a bit odd. Before you ask them to correct it...It's better to have a rolling 30-day than to have a CO showing.

Repo = charged off

Even though you've been making payments toward the deficiency; the account itself has defaulted. All defaulted accounts are due and payable in full. You no longer get a positive mark for making payments toward what's owed. At least, that's how it SHOULD appear if you insist on 100% accuracy (your right under the FCRA).

[matthewscott]

"...still show I am late every single month..."

Sounds a bit odd. Before you ask them to correct it...It's better to have a rolling 30-day than to have a CO showing.

Repo = charged off

Even though you've been making payments toward the deficiency; the account itself has defaulted. All defaulted accounts are due and payable in full. You no longer get a positive mark for making payments toward what's owed. At least, that's how it SHOULD appear if you insist on 100% accuracy (your right under the FCRA).

Ahntara, I'm confused by your post.

I certainly understand that this TL will not ever be totally positive again. It doesn't appear too positive now. However, if I remember correctly, the late payments really only show up on one of the credit reports. Ok, I just looked and EX is the one that is recording this one the worst. By the way, EX is my highest score at 683. All of the other reports that I saw either said one or no late payments at all. Of course, they all say charge off or something bad like that.

So, how should I dispute this or should I worry about it at all. What options do I have to turn this TL out for the best? Is it even worth paying? I fear they will sue me as the debt still owed is just below $10,000. Or is the charge off hurting me way more in proportion to the late payments and I should find something else to worry about?

What would be an accurate post (include or not include the late payments?)

What does your reference to the FCRA mean?

Sorry, I'm clueless on this. I feel like I'm throwing money down a rat hole and being further punished for trying to pay them back.

[Ahntara]

"...confused by your post..."

No worries. I didn't understand yours either. You are the only one reading your CR, so let's not sweat the small stuff.

Reference to the FCRA. It's your RIGHT to sweat the small stuff. The standard in the FCRA is 100% accuracy. A repo should appear as a CO, not with a rolling 30-day late. If your EX CR has the 30-day and not a CO, that's actually better for you. You might end up with a worse TL and a worse score if you have them correct it. Once again, it's hard to tell from your posts...

"...I feel like I'm...being further punished for trying to pay them back."

Yeah, it can feel that way. We publish all over this board that a paid CA is no better than an unpaid one. That's only a little bit true. My personal belief is that you do yourself a favor by paying your debts, even after default, even if it doesn't benefit you and poisons your CR. That having been said; here's the facts.

What causes deductions (to your score) is ANYTHING in the TL that indicates derogatory status PLUS the 'date last reported'. Credit scores are calculated by computer programs, not a human making a value judgment. So something that should be perceived as 'good' (like paying off a defaulted debt) MAY cause deductions due to the intricacies of the program(s). Still, some lenders (and insurance companies, employers, utility service providers, security clearance departments and anyone else with PP to view your CR) like to see defaulted accounts paid off. We also know that, given time, the impact of all derogatories is lessened. So you are left to decide what is in your best interests.