Legal Question in Credit and Debt Law in Virginia
Debts
My loan company for my car is telling me that they are going to charge off my car loan- what does this mean and what will happen- can they repo my car- what?
1 Answer from Attorneys
Re: Debts
Good question. Charge offs are accounting manneuvers which businesses
undertake by moving what once were
considered performing assets to the nonperforming side of the ledger, i.e, the company for whatever reason believes that it can no longer count on actually receiving payment on a particular loan or other debt. They may then sell the note/debt to a collection agency and report the charge off to the credit reporting agencies. (If such happens, the debtor is, however, in no way off the hook,
as the debt or defaulted loan remains fully collectible and some collection shark whose company has purchased the
note will undoubtedly come calling before very long.)
In your particular case, if your loan company has told you that they intend to hit you with a charge off, LOOKOUT, because, in addition to all of the above adverse actions, they could also indeed come and repo your vehicle to boot(to answer your last question).