Credit Reports

Do you owe the balance if your car was repossessed but the credit report says it was charged-off?


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2011-09-13 02:21:17
2011-09-13 02:21:17

Joe, lets say you owe me $1000.00. I have a legal contract stating that you owe me 1K. That contract can be sold to anyone who will buy it. If I decide to sell it to Sam for $500.00, I can do that and show a charge off of $500.00 that I "lost" on the sale. Sam however, intends to collect $1000.00 from you because he has a contract you signed agreeing to pay $1000.00 to whoever holds the contract. If you pay Sam the 1K then the contract will be worthless because its paid in full and you have reciepts showing you paid it. If you don't pay Sam, then Sam will get a judgment for however much you didnt pay plus any fees he can add on. Then the fun begins. Good Luck


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