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fixingmichael

Settlements - Auto repo

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Hello all!

 

I, like some of you, have made mistakes in my younger past that I've been working on cleaning up. A few years ago I had a new car and didn't make enough money. My eyes were bigger than my wallet. The car got repo'd, auctioned and all that. I have been paying off the car loan to a collection agency that is a third party to Scotia.

 

SCOTIA BANK
Phone Number: (888)777-6842 High Credit/Credit Limit: $32,000.00
Account Number: XXX...xxx Payment Amount: $390.00
Association to Account: Balance: $3,800.00
Type of Account: Installment Past Due: Not Available
Date Opened: 2008-04 Date of Last Activity: 2010-07
Status: Bad debt, collection account or unable to locate Date Reported: 2014-09
Months Reviewed:
Payment History: No payment 30 days late
No payment 60 days late
No payment 90 days late
Prior Paying History: At least 120 days past due ( 2011-11 ) At least 120 days past due ( 2011-10 ) At least
120 days past due ( 2011-09 )
Comments: Monthly payments
This is what is on Equifax regarding it. The collection agency called me yesterday and said that Scotia offered me a settlement on it since it's owing around $5500. They offered something I could probably handle $2500.
My questions are, why isn't the collection agency showing up on equifax, and is taking a settlement worse than just continuing to pay it off slowly? It could take another 2-3 years to pay it off at the rate I'm going with everything else. I've seen that a settlement is nearly as bad as filing for bankruptcy.
Also, I have a debt with BMO,
BANK OF MONTREAL M C
Phone Number: (800)263-2263 High Credit/Credit Limit: $0.00
Account Number: XXX...xxx Payment Amount: $190.00
Association to Account: Individual Balance: $3,700.00
Type of Account: Revolving Past Due: Not Available
Date Opened: 2007-06 Date of Last Activity: 2009-12
Status: Bad debt, collection account or unable to locate Date Reported: 2014-04
Months Reviewed:
Payment History: No payment 30 days late
No payment 60 days late
No payment 90 days late
Prior Paying History: At least 120 days past due ( 2011-01 ) At least 120 days past due ( 2010-12 ) At least
120 days past due ( 2010-11 )
Comments: Written-off
Monthly payments

 

As you can see, the date of last activity is 2009-12. I'm inclined to let that lapse because by next December if I understand correctly, it will be gone from my credit report never to return as long as I don't acknowledge the debt or make payments. Obviously this would prevent me from doing future business with BMO until that's paid off, but am I correct in assuming that once it's gone from my report, even if it's unpaid, my credit score will go up?

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Hi, I edited your title, to help attract the right people. I'm not sure how repos are treated in Canada, but in the US, usually there are some state motor vehicle laws that must be followed in order for the creditor to legitimately attempt to collect the debt. Do you know of anything like that in Canada? In other words, when your car is repo'd in the US you have certain rights - notifications, information about the resale, etc. I've been amazed at how often Canadian laws and US laws are alike (well, many of them). :D

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Thanks breeze. In regards to the car actually getting repo'd that happened about 3 years ago and I've just been servicing the debt ever since. I was first servicing the debt after the repo directly with the bank, but unfortunately I wasn't able to keep that up. After a few months of delinquency it went to a collection agency that I've been able to maintain paying. I'm pretty sure it was all done by the book so I'm not too concerned there. I'm really wondering if taking the settlement is better than just continuing to pay it out and maybe 3 years be done paying it in full. However, then the question is, if I settle, does it go away in 3 or 6 years, and if I pay it off in full, it'll go away in 3 or 6 years after that.

 

Basically I'm pretty sure the damage is already done. Is a settlement really bad? Paying it in full might look better, but can I get a mortgage by 2018? I'm pretty lost on what the best choice would be. And does letting the BMO debt expire make more sense than trying to pay it if I'm okay with not doing any business with them until I am ready to pay that off later in the future?

 

Settlement: Gone from my record by 2020

Pay in full: might take 3 more years, gone from my record in 2023

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