Ask Me Help Desk - 9 year old car repo debt

First thing, I got to say I'm new at this. I've never had any problems will this type of thing, so I'm at a loss as to which way to go.

Here's the problem. I applied for a home equity line of credit this past week. I had no issues with my credit and I was approved with no problems. I put my wife's name on the loan too, knowing that she had some "issues" with credit due to her last marriage.

The gentleman I was dealing with told me that while it didn't affect the loan, there was a car repossession reported on my wife's credit with a balance owed of $3200. Come to find out, her ex husband bought a new car in 1996 and it was repossessed in 1998. Her name was on the car loan too. They divorced in 2001 and I married her in 2003.

Here's the kicker... this was just reported in February of 2007! That's nine years after the car was repossessed! She thought the loan had been written off and was behind her. We never saw this on any other credit report before this.

So... what should I do? It sounds like she owes some money. Can we settle it for less money? If we settle it for less, will that affect her credit? Can we go after her ex husband legally for half this debt?

You need to find out the details of this ( I would do it though an attorney personally)

Unless they got a judgement on the balance, the statue of limitation should have long ago been past. It sounds like something has happened recently that made this hit the report, It is possible that this debt was sold to a new collection firm that has re-reported it.

I would speak to an attorney before doing anything, it is possible if the SOL has ran out it is as simple as requesting this listing be taken off your credit report.

And who actually owed the debt from the divorce agreement would determine also if you can sue him for 1/2 or all of the settlement if you did settle with them.

Hello Big:

While I agree with the Padre, I would first try to get it removed from her credit report. Then who cares about it because they're not coming after her.

Follow the instruction on your credit report. Challenge it based on the rule that it must come off after 7 years of no activity. You might have to do it a few times. I would send my first challenge, certified, return receipt requested.

If you contact the collector you start the 7 year clock again.

excon

Quote:

Originally Posted by excon

Hello Big:

While I agree with the Padre, I would first try to get it removed from her credit report. Then who cares about it because they're not coming after her.

Follow the instruction on your credit report. Challenge it based on the rule that it must come off after 7 years of no activity. You might have to do it a few times. I would send my first challenge, certified, return receipt requested.

If you contact the collector you start the 7 year clock again.

excon

Thanks Guys!

Excon... Wow, I was going to call the bank on Monday and see what we needed to do to straighten this out. Looks like I won't be doing that.

Honestly, I don't mind paying her half of the bill if need be. She's worth it and its not going to put me in any bind to write a check. The thing that gets me is they never have gone after her for any money owed previous to us finding it on her credit report.