Credit Issue w/ Voluntary Surrender

[lissdyleric3]

From FL:

In August of 1999 I was given a car loan from my credit union. Due to a job layoff I was unable to afford the payments so in May of 2003 I dropped the car off in the Credit Union Parking Lot and placed the keys and a note in the envelope through the slot in the door of the credit union. The not explained that I lost my job and when I called to refinance the loan they (credit union)told me I was lucky to get the loan in the first place and there was nothing they could do, so here I need to return the car. I just pulled up my credit report and I do not understand the dates or amount. The dates go like this:
Date Opened: 8/1999; Reported Since: 9/1999; Date of Status: 01/2004; Last Reported: 01/2006. Now, I was issued a 1099-c from the credit union on 12/04 (date canceled). The amount of debt canceled is $9,842.41. The amount on my credit report is $16,226.00. It then says recent balance of $0 as of 01/2006. I was current with my monthly payment until the time I dropped my car off (yes I may have been late a few times, but it was always paid for each month). Is there in error in my credit report? The dates and amount do not make sense. Please Help!!!

[zippysgoddess]

The reason it probably currently says $0 is that they have probably sold the debt to a collection agency or turned it over to an outside collection source. They aren't supposed to leave the account showing as owing on your CR more than once, otherwise it looks like you have more defaulted accounts than you do which is a violation of the FCRA.

As to the higher amount, you are thinking of what you originally owed and received on the 1099-C, you are not figuring in additional interest charges, late charges, collections charges, the fees for them to do something with the car that you so nicely left in their parking lot, attorney's fees and etc. As long as you owe it, this stuff will keep racking up and raising the amount due.