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Hi. I co-signed on a car for my cousin in 2008. The car got repossessed in 2009 and the balance shown as ‘charged off’ on my credit is K. Today they told me if I pay 1/2 the balance they can settle the debt and if not they will send me to judgment. If I don’t pay the ,500 today (don’t have that kind of money) the only option I have to avoid judgment is arrange monthly payment on the entire balance. My question is, will they work with me and lower this at all? Does Wells Fargo typically send people to judgment over this kind of balance (mostly fees) or do they sell it to a collection agency?

2 Comments »

1. 

   Since they are trying to cut a deal it sounds like it’s already with a collection agency, or, Wells Fargo screwed up the repo and they know it and they are just trying to get whatever they can from it.

   Wells Fargo MUST follow the repo laws for your state EXACTLY!!! If there is a cosigner then that includes sending all of the required notices not only to the primary on the account but to the cosigner as well. If they have your address and you hadn’t received the required notices in a timely manner then they have no legal standing in trying to collect the deficiency from you. That doesn’t mean that they cannot try to sue, and win if you fail to show up in court to defend your position.

   Order hard copies of your credit reports from all three credit bureaus.
   Order a CarFax report and look to see if there is anything sketchy in what is being reported on it.
   Go to the Forums on the free site I’ve listed in the source box and do a search in the Credit Forum for repo and do some reading, especially in the threads where Why Chat has posted. You will be able to find a letter template series, which is free to use, to dispute the repo deficiency with Wells, the collector and with the credit bureaus.

   Comment by anywhoo — September 7, 2011 @ 6:38 am

2. 

   Don’t bother to enter into some monthly payment deal with them. If you don’t have a lump sum to offer them to make this go away (50% off is pretty good actually) don’t bother at all.

   Yes, they will sue you over 5k. I know YOU think 5k isn’t a lot for a bank to absorb, but, imagine if they had 10,000 people defaulting on that sort of loan? Adds up fast. They have every right to recoup their losses and believe me, they will.

   What you need to do since you were a cosigner is take your deadbeat cousin to small claims and SUE them for the 5k! Then, have the court make out the check to Wells Fargo to get this paid off.

   And, never cosign for anyone again.

   They have already lowered it. The initial amount you owed was 5k. They are willling to settle for $2500. That’s 50% off the amount you owed.

   Comment by Use Your Noodle — September 7, 2011 @ 6:38 am

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