Auto Loans Paid, charge off

[Mike g]

Jurisdiction

California

My credit report shows a paid charge off for an auto loan . The date listed is July 2017. I don't think it was paid in full. Can they still collect. There is nothing else regarding this entry.

 

[army judge]

Can they still collect.

The precise answer depends on several additional, and as yet unrevealed details.

As far as the SOL reads in CA regarding traditional auto loans.

Statute of limitations on car loan debt in California

California has a statute of limitations of four years for all debts except those made with oral contracts.

For oral contracts, the statute of limitations is two years.

This means that for unsecured common debts like credit card debt, lenders cannot attempt to collect debts that are more than four years old.

This is a general answer given after a quick perusal of the CA statute.

Again, a precise answer depends upon details you have as of the moment NOT revealed.

 

[mightymoose]

Are you saying the account was written off and you later made a payment toward it?

If you did make a payment it is possible they accepted a settlement for less.

It is possible that if there is a remaining balance due they could pursue you. The credit report should show a balance of $0 of it is paid in full.

 

[Mike g]

From what I remember, a payment was not made for some time. I made one payment which is noted on the credit report dated 2017. The credit report doesn't have any amount in the balance - just a line and blank. Is that the same as a zero. Can they go back to a collection.

 

[mightymoose]

If you never paid the amount due they can still pursue collection and obtain a judgment against you.
Also, the amount charged off could cause tax problems for you in the future.

 

[Mike g]

So they can still send this to collections which would show as a collection several years later. I would think they would send to collections right after updating my credit report. The credit report doesn't have a balance or amount wrote off. I tried calling the number on the credit report but did not get an answer. Not sure we're to go from here.

 

[Zigner]

A "write off" doesn't mean that you don't owe the money - it is simply an accounting tool. Assuming that there isn't some other bar to their collection, a "write off" doesn't prevent collection in the future.

 

[zddoodah]

Can they still collect.

How should we know? What is shown on your credit report is rarely, if ever, relevant to a creditor's ability to collect a debt.

 

[flyingron]

Unlikely this is an "oral contract." Most car loans are written. If you paid something in 2017, then it will still be within limitations until 2021. They can sue you. They can repossess the car. They can do both.

As mentioned, chargeoff means NOTHING to you (either as far as collections go or tax liability). It means the lender has declared it UNLIKELY that they will recover the amount. It's an accounting issue for him alone. It doesn't mean he (or his assignees) can't still try to collect. It certainly is NOT loan forgiveness.