What Consumer Portfolio Services Just Told the SEC About Its Car Loan Extensions
A subprime auto lender’s own SEC filing shows how often loan “extensions” actually work — and how often they just delay repossession.
charge off
What Is a Charge-Off? It Doesn’t Mean the Debt Disappears
A charge-off means the creditor wrote your debt off their books — not that it’s forgiven. You still owe it, it stays on your credit report for 7 years, and collectors can still sue you. Here’s what to do.
Reader Questions: Walmart, Rent, and Credit
Quick Answer: The post addresses common credit and financial reporting questions, including that credit unions may need to provide loan interest documentation for taxes depending on loan type, and that charge-offs can appear on credit reports even after full payment if the debt was previously in default. Credit score boosts from companies like Experian are …
Paying Off Old Delinquent Debt: Myth vs Reality
Quick Answer: Paying off old delinquent debt won’t remove negative marks from credit reports, and charged-off accounts are typically sold to other companies within years. After nearly three years, Macy’s DSNB debt was likely sold by Citibank, making the current owner difficult to identify without checking all three credit reports.Question:Dear Steve,Have a delinquent account for …
Charged Off Debt: What It Really Means
Quick Answer: A charge-off is an accounting function where lenders write off debts as losses after 120-180 days past due, but borrowers still legally owe the money. Banks can pursue collections internally, through third parties, or sell the charged-off debt to debt buyers for continued collection efforts.Question:Dear Steve,I have 6 negative CC balances on my …
Charged-Off Student Loans: When Contact Helps
Quick Answer: When Navient charges off a private student loan, the debt isn’t forgiven but typically sold to collectors for pennies on the dollar, potentially triggering 1099-C tax liability. Borrowers should verify the collector’s documentation and consider statute of limitations defenses before agreeing to pay the new debt owner.Question:Dear Steve,What does it mean Navient has …
Charged-Off Private Student Loans: Myth vs Reality
Quick Answer: Charged-off private student loans from companies like Navient remain collectible and can still result in lawsuits and wage garnishment. Borrowers may owe income tax on forgiven debt over $600 and should understand that statute of limitations doesn’t prevent collectors from pursuing the debt.Question:Dear Steve,I defaulted on my Navient/Sallie Mae private student loan and …
Chase Second Mortgage After Bankruptcy: Myth vs Reality
Quick Answer: Chase can foreclose on a second mortgage even after Chapter 7 bankruptcy discharge if the homeowner didn’t reaffirm the loan. While the borrower isn’t personally liable for the debt after discharge, the lien remains on the property and Chase can foreclose if there’s sufficient equity to cover both mortgages.“Dear Steve,Current on my first, …
Charged Off Discover Card: When It Helps, Hurts
Quick Answer: A charged-off Discover Card can hurt credit but making payment arrangements may prevent lawsuits on the $13,000 debt. Defaulting on the second current Discover account would only add another negative entry without improving the borrower’s situation with the charged-off debt.I have $13,000 worth of credit card debt that has been charged off. The …
Chase Charge-Off: When It Helps and When It Hurts
Quick Answer: Chase charge-offs don’t eliminate debt but serve as an accounting function when the bank can no longer report the loan as a good asset. After charge-off, Chase may continue collection efforts or sell the debt to collection agencies who can still pursue payment or legal action.“Dear Steve,I have been making arrangement to pay …
