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Wells Fargo cancelling debt before I disputed

CandiedCredit

By CandiedCredit,
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CandiedCredit

CandiedCredit

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Hi everyone, I am a bit confused about a letter I have received from Wells Fargo. It is an old auto loan that was charged off in 2018 (repo).  I have only removed addresses and frozen lexisnexis,innovis, etc at this point. I received a letter from WF stating that due to the age of my account they are cancelling the balance, and will no longer attempt to collect. This seems strange to me that they would voluntarily cancel a debt before I've disputed anything. What should I do if anything regarding this letter. I'm hoping the credit Gods are just dropping a blessing down on me :) 

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cv91915

cv91915

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5 hours ago, CandiedCredit said:

old auto loan

 

5 hours ago, CandiedCredit said:

charged off in 2018 (repo)

 

This isn't that old.  

 

Roughly how much was the deficiency balance?

 

5 hours ago, CandiedCredit said:

due to the age of my account they are cancelling the balance, and will no longer attempt to collect

 

There must be some other explanation.  Does the letter say anything about them selling the debt?

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schizcat

schizcat

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4 hours ago, cv91915 said:

 

There must be some other explanation.  Does the letter say anything about them selling the debt?

That was might thought. They may be canceling their side of the collection and just selling it off to a CA. How long ago did you get the letter? This could be residual from when they said they were getting rid of their personal credit lines.

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CandiedCredit

CandiedCredit

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6 hours ago, cv91915 said:

 

 

This isn't that old.  

 

Roughly how much was the deficiency balance?

 

 

There must be some other explanation.  Does the letter say anything about them selling the debt?

The loan was opened in 2016, charged off 2018. Balance is 11,900. The letter didnt say anything about selling it. I got the letter yesterday 8/21/2021

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CandiedCredit

CandiedCredit

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5 hours ago, schizcat said:

That was might thought. They may be canceling their side of the collection and just selling it off to a CA. How long ago did you get the letter? This could be residual from when they said they were getting rid of their personal credit lines.

The letter didnt say anything about selling the account.  It does say they will no longer accept payments, and that they will report a zero balance to the bureaus.  they say they are forgiving my debt

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centex

centex

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Canceling says you can expect to see a 1099-C to deal with on your taxes next year. 

 

Clearing the balance sheet is NOT unusual, especially for banks under increased scrutiny.  And it could well be that they are set to show a larger loss for Q3 as a result of the cancellations, which then allows them to be leaner going forward. 

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