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Car was charged off for Co-signer - what to do?


sharris
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I recently pulled my credit report and discovered that a car I co-signed for was charged off and sold.

I called AmeriCredit and informed them that I was never informed of this. They told me they mailed me a letter back in June of 2006 but it was returned. They added that the phone # in their system had been deleted.

I explained that I moved in June but my mail was forwarded;all of my other mail was forwarded for 3 months, I couldn't understand why this wasn't forwared. They told me that I would need to take this matter tup with the Post Master. In the mean time, I owe $9,000. I never had a chance to make a payment arrangment on this account. The person I co-signed for never informed me of this. What can I do?

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I recently pulled my credit report and discovered that a car I co-signed for was charged off and sold.

I called AmeriCredit and informed them that I was never informed of this. They told me they mailed me a letter back in June of 2006 but it was returned. They added that the phone # in their system had been deleted.

I explained that I moved in June but my mail was forwarded;all of my other mail was forwarded for 3 months, I couldn't understand why this wasn't forwared. They told me that I would need to take this matter tup with the Post Master. In the mean time, I owe $9,000. I never had a chance to make a payment arrangment on this account. The person I co-signed for never informed me of this. What can I do?

Welcome to CIC.

That is an expensive lesson. Never co-sign for anyone. If they will have to go to jail if you dont, then promise to visit once/month.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=270597&highlight=car+repossessed

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Anytime you co-sign for a car (or anything else for that matter) you have to stay on top of the repayment of the debt since you're ultimately responsible.

Have you checked your credit lately to see if this has been reflected on your reports? Chances are it went delinquent before they charged it off. At any rate, you'll need a full accounting of the debt as they'll probably come after you for the difference.

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great advice, only cosign if it's something you would want for yourself and appreciates in value. What type of van, and do you know what it was sold for? If sold for less than what was owed, they may have reported the negative balance to the irs.

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great advice, only cosign if it's something you would want for yourself and appreciates in value. What type of van, and do you know what it was sold for? If sold for less than what was owed, they may have reported the negative balance to the irs.

THIS IS MISINFORMATION.

The IRS can do absolutely nothing with regard to collecting private debt.

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THIS IS MISINFORMATION.

The IRS can do absolutely nothing with regard to collecting private debt.

Not quite misinformation. If a debt is "settled" for less than the full amount owed, then the creditor is supposed to issue a 1099c for "found income"...on which the debtor is required to pay income tax. I'm honestly not sure how this all works with a repo, but it does apply to CCs and the like.

Now, as to the repo....there are some UCC rules regarding notification when a repo is sold. If you were not notified, you might be able to walk away from that debt. You need to do some research.

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They have to notify the co-signor of the repo, the sale date as well as the remaining balance.

If they did not then they have breached the UCC code and you are not liable to them

Check your state laws. Indiana has fines for not following... most of the UCC codes do.

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They have to notify the co-signor of the repo, the sale date as well as the remaining balance.

If they did not then they have breached the UCC code and you are not liable to them

Check your state laws. Indiana has fines for not following... most of the UCC codes do.

This is correct, but the problem is that they must notify each party at the address on the contract or the last known address. They will have the burden of proof that they notified you and if they have a returned to sender receipt, you are going to be liable. There are lots of hoops to jump through in order to claim a deficiency on a secured transaction. Check this site for repo's and you'll find the general idea. :goodluck:

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