Credit Collections

I’m new here but I have a question that maybe someone could possibly help me with. Several years ago I had an unfortunate accident on my job that ended my career due to the injury I was unable to return due to debilitating circumstances. At the time of my loss of employment I was unable to make the loan payments on my vehicle and surrendered it to the credit union that the loan was with. After which the credit union sold the vehicle at auction for less than I owed. It wasnt until 2 years later that the bank made contact with me to inform me that I owed the balance that was left after their sale of the vehicle. Here is the huge deal I need answered, on my credit report the debt is listed as charge off and account in good standing as of 2014! I am receiving calls daily demanding payment. If the credit union reported it as charge off and in good standing must I pay the balance or can I call them out on their harassment?

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I wish I had an answer for you but I do not know! I’m hoping that someone else has some experience with this…?

Not sure about this answer, but I do know that often times debts that were forgiven or written off are often “sold” to third party collectors and usually it’s several years after the fact. It may be those collectors who are contacting you. If it were me, I would contact the credit union directly and ask to speak to the loan or collections department and ask them the status of the loan. If it shows that way on your credit report, there’s a good chance it was taken care of and the third party collection agency is just hoping to get some money from you. If the credit union says it’s been paid off, then you can tell the people hounding you to back off. If they don’t back off (and they usually will when you say the loan was forgiven), I think you can contact the state attorney general (or some other agency) to have them help you get these people off your back.

Don’t stress…When my husband died, one of his creditors told me they would wipe the balance (very small, but still I didn’t have to pay it) when they found out he died. Three-four years later, I get a phone call from a collection agency telling me I owed money. When I contact the creditor, they told me that’s probably what happened (sold to a 3rd party) and that I did NOT owe the funds. I relayed that to the collectors and they left me alone.

Good luck.


Been there ! So even though its a charge off that does not mean the company cannot try to collect and most often will !!! its a nightmare . You technically do owe but the general norm is people don’t. Block the call or try to settle for pennies on the dollar amount owed. But yes they can continue to collect. Also make sure it really is that company and not a scam.

Hi Jessie,

So sorry to hear about your situation. Here is an explanation of what you might have going on. I would read the whole link, the last 2 sections might apply to you-After The Car Is Sold & Auto Loan Charge Offs. Hope this helps and best to you:


I’m guessing that someone (a company that does this) bought the old loan for pennies on a dollar. and will harass you forever to get the money. Don’t pay them no matter what. Everytime they call save their number with some stupid name so you won’t answer again and you don’t have to talk to them or answer their letters they cannot do anything to you. If this is the only time a bank screws you consider yourself lucky, They are not bankers they are bandits.