Auto Repossession Credit
A repossession on your credit report will cause you to pay outrageous interest rates and big down payments. A repossession is a very severe mark.
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.
It is possible for you to remove this mark from your credit report. Following is an explanation on how the repossession procedure works.
When your car is taken and then re sold if the lender takes a loss you will be responsible for repaying that. You will be sued and if you are found responsible a deficiency judgment will be placed against you.
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, wait to see if you are sued for any damages or loss by the lender. We also suggest you wait until the car is re-sold.
Then dispute the repossession on your report by sending a dispute letter to the bureaus.
In this letter you must provide an explanation as to why the mark is inaccurate. You can write this letter or hire a service to do it on your behalf.
Once the letter is received, the bureaus will conduct an investigation into the listing. The bureaus will contact the lender who will be asked to confirm that the account is yours, the balance, and the reported dates.
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 summing up, repossessions are removed from credit reports every day. You do not have to feel embarrassed or pay high interest rates every time your credit is run.
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