Joe
Centreville,#2Consumer Suggestion
Wed, June 27, 2007
I am responding because most people do not know the process for your type of situation......to start I am an experienced collections manager; I have worked with car loans, credit cards, and mortgages. So I know what I am talking about....unfortunately most companies.. i.e. CNAC...do not practice "customer service" and one of the main reasons that I refused an offer to work for them.....with that being said a company, either the one that originated the loan, or a collection company do not honor a divorce decree...the reason is that the original loan was signed by both parties, so both parties are held responsible....the divorce is a domestic action and what the decree enables you to do is take the other party back to court to resolve any damages or receive money that you had to pay in result from them not honoring/following the divorce decree. The only way to get the loan completely out of your name would be to refinance..being that a car loan, mortg, or even if the other person took out a consolidation loan to pay off shared debts.....but that is the only way..... Now as far as it being charged off....the process for a charge off is so that the company saves itself from further money loss...they charge it off as a loss and to try to gain a profit they sell the debt to a third party collections company....once it is sold, CNAC (or any company that charged a debt off) has nothing to do with it except providing archived records (most of the time they give that to the first company) Now a charge off does not mean the debt goes away it is just a legal way for the company to stop losing money, but now a 3rd party has it and they will sometimes add fees and or interest to it....(this is also stated in every loan agreement that you sign)...their purpose is simply to make as much money as possible..now if time goes by and they have not collected the balance in full, or settled the debt, and have not had any activity (either payments or actually talked to you) that company will sell it to another company in hopes to make any kind of profit off of that debt..... And this brings me to a point that I would like to share to anyone reading this....it will not go away after 7 yrs....the 7yrs applies to debts that are NOT active for 7yrs...meaning nothing has been done involving that debt...so your charge off will go away after 7yrs but the actual loan will not because of the contact with you and the selling it to different companies, this goes for anything. So if you feel that you were sold a lemon, look up the lemon law in your state/county/town/city...then if need be see an attorny..but for future situations the best thing is to document who you talk to, name (I.D. number), date, time. Keep a file of everything involved with that company...so you have something to go on...also keep on paying, it is very hard to correct items on your credit after fighting it. So it is easier to bite the bullet and then get damages afterwards..you are only hurting yourself when you do not pay unfortunately...Also get familiar with the FDCPA (Fair Debt Collection Practices Act) this is federal law pertaining to how company's need to collect on past due items....your state might have extra laws on top of the FDCPA.....you can find it all over the internet. :) Hope this helps you and also explain some of the process.
April
Milwaukee,#3Author of original report
Sat, June 09, 2007
I forgot to add the company the debt was sold to as of now, had the nerve to try to comment and have a conversation about my credit report. How can this be pulled if I am not doing business with them or asking them for any services. Can certain companies just look at credit reports whenever they decide they want to? Is there no just cause to view protected information? If not that needs to be addressed because someone most definitely will abuse that loophole.