Repossession on Credit Report

Having a repossession on your credit report is very damaging. It is a severe mark that will cause you to pay big down payments and outrageous interest rates.

A repossession will remain on your credit report for seven years. Approval for any new lines of credit will be very difficult with this mark.

Let us explain how the repossession procedure works. It is possible for you to remove this mark from your credit report.

First, your car is repossessed. Your car can be resold and, if your car is resold at a loss to the lender, you are responsible for repaying this loss. A deficiency judgment will be placed against you if you are found responsible and sued.

If you have a deficiency judgment, this will be reported on your credit as well as the repossession. Future lines of credit will be next to impossible to get if you have either one of these marks on your credit.

To remove a repossession; we suggest you wait until the car is re-sold. Additionally wait to see if you are sued for any damages or loss by the lender.

Then dispute the repossession on your report by sending a dispute letter to the bureaus.

You can hire a service to do it on your behalf or write the letter yourself. This letter must present a reason as to why the mark is incorrect.

The bureaus will conduct an investigation into the listing once the letter is received. The lender will be contacted and will be asked to verify that the account is yours, the reported dates, and the balance.

The lender is much less likely to spend the time or money verifying the item with the bureaus if some form of payment has been received for the debt. Therefore, we suggest waiting until payment has been made. If an item is not confirmed it must be removed from your credit report.

Rumors are that the bureaus do not check public records when investigating a mark. That is where the bureau would find confirmation of a deficiency judgment. If you have a deficiency judgment you should dispute this mark, too.

In summary, you do not have to feel embarrassed or pay high interest rates every time your credit is run. Repossessions are removed from credit reports every day.

Written by Justin Hutto on March 2nd, 2009 with no comments.
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