2 payments left and possible charge off?

Question

i have 2 payments left on my volkswagon jetta and they are saying they may or may not do a charge off. what exactly does this mean. i've told them when i can pay and for them its just not good enough by the time of this possible charge off. any info would be appreciated. this is my first car that i got on my own, and with 2 payments left, i dont want this messing my credit up if i need to get another car down the line.

Answer 1

First of all, they do not do charge offs until the vehicle has been repossessed. They would then sell it at auction and apply what ever they get for it to your balance owed.  Then they would do a charge off but only after a period of time (usually 6 months).

This would not mean you don't have to pay the ballance, even though it is a charge off, they will sell the debt to a collection agency who will in turn hound you for the money.

If your account is more then 90 days late, I would recommend you pay them off as quickly as possible to avoid repossession.

Hope this answer is of help to you

LEGAL DISCLAIMER:  The answer provided  is not intended as legal counsel.  It is for informational purposes only and is not intended to presume to be legal counsel.

Answer 2

I'm actually not sure what that means but you should call whoever you have your loan through and ask them to explain what it means.