Auto Loans Auto Loan Write Off

[steely7]

Short and sweet. My auto finance company just wrote off 3k in debt as of 12/07. They just sent me a letter offering a settlement. They also stated that failure to do so may result in repossession of the vehicle. My question is, if they charged off the debt, am I still obligated financially and can they repossess? Thanks.

 

[JohnMacek]

they have a security interest in the vehicle. if you default, they can seize it and sell it at auction to recover the balance owed.
a debt being charged off has nothing to do with your obligation to pay. you still owe the money, they just wrote it off for tax reasons.