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Deployed in Afghanistan With a Navy Federal Credit Union Car Loan They Want Me to Pay. – Devon

“Dear Steve,

Well here goes: I had an auto loan with NFCU (Navy Federal Credit Union) back in 2007. I paid all my monthly payments on time up until I was honorable discharged from the military in Dec 2008. Now I would’ve stayed in knowing all my obligations to creditors and various other bills, but at that time there was no other option as my pride and dignity were at stake and I was behind a rock and a hard place with my chain of command (lot of shady things going on that I wanted nothing to do with but would have been if I had decided to stay in with that particular unit). Anyways back to my situation…… I was unable to keep up with my payments and tried to negotiate with NFCU but they would not work with me even though I explained I was unemployed. Eventually I was able to make a single payment on the loan. I contacted NFCU and they said they sent my loan to collections and I was told my car would be repossesed. The collection agency said there was nothing they could do and continued to ask where my car was for repossession. I would not tell them. I called NFCU again and tried to renogiate a payment plan and they said that I would have to pay in full. I said i could not but that I was in position to make lower payments, once again got the whole full payment speech and told them I could afford that. All the while I was contacted various times about repossesion and I continued to not tell them where my car was and said that I want to make payments and they said that I could only negotiate with NFCU. I realized I was getting no where. After like 6 months of getting calls from the repoman they stopped calling me. I still had my car, because they could not find me. No legal action was taken because I know that in the state of California, as long as I don’t deny to pay that no legal or civil action could be taken against me. All NFCU had to do was allow me to lower my payments but they didn’t. It is not al most 2 years later and it is a charge-off on my credit report. I am deployed and in a position to make even higher payments.


If they tell me they want me to pay in full I will give them the same answer. What do I do? I want to settle for less or just give them the car back. Please help. Also I am in Afghanistan which helps as far as lowering interest rates by law should they allow me to finally take over payments again. Ultimately I want to get out of debt and fix my credit score.


Dear Devon,

First off, thanks for your service to our country.

Let’s tackle this debt. It’s an unusual situation. It seems the most logical thing to do at this time in an attempt to resolve this would be for you to work with a third party to contact NFCU on your behalf and attempt to negotiate a resolution. The reason I suggest a third party if for two reasons.

  1. It does not seem like you are in a position to have easy communications with NFCU while you are deployed.
  2. An experienced third party may have a better chance of cutting through the crap and getting some deal done. You may have to issue them a power of attorney to represent you.

It is quite possible that NFCU is going to add a penalty or at least the missing years worth of interest on to the balance.

What I don’t know is what the balance is and how much you have on hand to pay this debt.

As far as a third party to help you hear I’d suggest an attorney or Damon Day, a debt coach. If Damon needs advice or feedback he picks up the phone and calls me so you’ve got that as well.

Let me know your thoughts on this approach and what you think the balance is and how much you have on hand to settle.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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