Options when paying for repo auto

by Russell

I purchased a new vehicle in Houston, TX in January 2005. Due to loss of income later in the year I could no longer afford the vehicle and eventually it was repossessed in September 2005. After it was sold at auction, the collection agency came to me for the remaining balance of approximately $12,000.00.

I have been paying $150.00 per month since December 2005/January 2006. The remaining balance is $3,028.75. Frankly, I no longer feel the need to pay this account. Any time I call they act as if I'm the best customer in the world (I'm sure I would be) and today when I called to discuss lowering the the monthly payment the representative seemed to giggle when she noticed how long I've been paying on the account.

I have discussed a settlement option with them over the years but never accepted it. Do I have any options at this point other than to continue paying it off? The rep suggested that since the balance is so low I may not want to settle at this point and continue to pay it off.

Thanks for your advice.

Reply from DebtCollectionAnswers.com:

We don't see any reason why you shouldn't or couldn't settle the balance.

Your only other option is to stop paying but then they may still pursue you for the balance - and try to tack on additional charges. The fact that you have been making payments means that the statute of limitations have probably not expired. (That isn't legal advice, though, so to be sure you'd want to check with an attorney.)

As far as your credit reports are concerned, this debt should come off your credit reports 7.5 years from the date you fell behind with the auto lender leading up to the charge off. That's true whether or not you settle. So settling shouldn't impact your credit scores.

We'd suggest you read your page about settling collection accounts next.

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