Repossession can leave a lasting mark on your credit report and are considered more seriously in lending decisions since it is an installment account. Often clients that have hired our firm are facing several main issues when it comes to repossession:
- Incorrect credit reporting of the repossession
We find that often the credit report does not reflect the true date of repossession, especially when sold to a third party debt buyer. This can re-age the debt making it more damaging to your credit score. We work directly with the lender to adjust credit reporting accurately.
- Balances are incorrect
We find that often the balance that is being reported on the credit report does not include the proceeds from the sale of the car. This is a potential violation and needs to be corrected.
- GAP insurance coverage
We find that often when a client has had a car wreck that they may be a small portion left over that the GAP coverage did not pay. The lender then will post a repossession on the client’s credit report because of their automated system.
- Auto Loan was charged off but the auto was never repossessed
We find that in some situations an auto account is marked as repossessed even though the collateral was never actually taken back. Clients in this situation often find themselves with a car that they can not dispose of because they have no title. We can usually negotiate an settlement amount for title.
- Auto Lender or Debt Buyer is suing for deficiency balance on auto loan
It is becoming more common that the lender will sue for the deficiency balance after a repossession. We can defend a client in a lawsuit of this nature.
We do find that in most cases with auto repossessions appearing on the credit report we are able to assist the clients in adjusting the credit reporting to a more favorable status. Sometime the lender may agree to possibly remove the tradeline or accept a settlement on the account.
We commonly work with the following auto lenders:
- Bank of America
- Capital One Auto Finance
- GMAC Financial
- Lobel Financial
- Navy Federal
- Union Bank
- Wells Fargo Bank
We offer competitive, flat fee pricing. We offer discounts when we work more than one issue for a client and allow payment plans. For our fees we will:
- Obtain the necessary documents to evaluate your situation
- Evaluate the documents compared to the client’s scenario and help render an opinion
- Help the client enforce their rights as to the debt collection / credit reporting.
- If desired, approach the lender to see if a settlement can be made that is favorable to our client’s goals of credit reporting and ending possible legal liabilities.
The above fees do not include the filing of a lawsuit against the creditor.