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Help! Ally keeps saying my car loan was a $120 charge off. (It wasn't!)


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I need some help. In correcting an error on my old car loan with Ally (ex-GMAC), the error was corrected - but the updated information is now also wrong!


Ally says my car loan had $120 charged off. If so, they never told me, or sent me any information that there was money due. In fact, they sent me a letter saying the loan was paid and released the title.


However, I challenged the NEW information, sending in a copy of the letter as proof. However, Ally seems to have confirmed it. My report shows the car loan was paid off for less than the balance owed - which is costing me ten points on my credit score! (Trying to get to 700-720. Now at 660 after starting at 530.)


It doesn't even make sense. Why would I pay $23,000 for my car loan, but not pay the final $120?


I don't want to simply challenge the information for a third time, as I'm afraid that the credit bureaus might dismiss me as a chronic and lock the information in. And I've heard sending a GWL to Ally is a waste of time.


So, what are my options? Thanks in advance!


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@philsoc - sorry if I did not follow your story, but have you disputed this with all the CRA's?  I saw you disputed with original creditor.  I would indeed dispute with the CRA's and send them any proof of inaccurate info you have.  I would not do it through their online system, but mail them in certified.

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@philsoc can you show us exactly how the tradeline appears?


I ask because, in general, "charge off" by itself isn't much of a negative mark in credit scoring.  It just an accounting term...and in this case, could mean they charged you interest and then turned around and removed the interest because you paid the loan off before the interest was due.  They use CO to correct their books...

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  • 3 weeks later...

You should contact a consumer attorney who does FCRA work.  If you disputed the error and they verified it, then you should file an FCRA suit against Ally. 


With your letter from Ally (and, Im assuming bank statements that can also verify your loan payments), then I would believe that any FCRA lawyer will take this case with no charge to you.  They should be able to get the error removed or corrected on your reports as well as up to $1k in your pocket for the troubles.

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