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What are my current options for a charged-off car loan?

New York, NY |
Filed under: Credit Car loan

In 2010, I had taken out a car loan with Santander Bank at an interest rate of about 25%. After almost 2 years of making payments, I fell into some financially hard times and the car was repossessed. Not wanting to "ruin" my credit, I paid the past due debt to retrieve the vehicle. Once the debt was paid, after running my credit report, I found out the loan was charged-off. I was never notified of this!

I'm continuously making payments at an extremely high interest rate, and I've only had a $2,000 reduction in my principal balance within 3 years of making payments (which seems odd to me). At this point, my credit is already ruined! What are my current options with this charged-off loan?

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Attorney answers 2


A law suit to fix the report by litigating the debt will cost more than the charged off amount is worth.

Good luck.



Thank you for your comment! I think I may have missed a few important points. One major issue I have is the original amount of the car loan was a little over 15k. As of today, my total balance is still 14,500, after paying 429.29 per month for 3 years. It doesn't add up! Secondly, shouldn't I have been notified that the account was charged off? If I were notified at the time of repossession, I would of let them keep the vehicle. They are still reporting it as a charge off on my credit even though the vehicle is in my possession, and my loan has been current for about a year and a half now (since the date of the original repossession).

Peter Christopher Lomtevas

Peter Christopher Lomtevas


Credit reporting errors are legendary. The three reporters will mix up names and numbers until nothing makes sense. Filing an order to show cause at a special term in a NY Supreme Court to order repairs to the report will cost thousands. Sending in challenges to these errors also goes nowhere. You may have to adjust to life without credit. Borrow from friends and family. Have a yard sale. Buy housing in outlying areas. Buy used cars and repair/restore them. We're in a new economy and the old methods no longer work.


I never heard of Satander bank but assume that it is a licensed NYS bank. If you took out a loan and are current with payments, the bank should be willing to correct your credit report.



I agree, but they're not doing so. After doing research, I've found a large amount of complaints against this particular bank. I think I may have to contact a lawyer regarding my issue. Thank you for your response!

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