How To Get Rid Of Repossession On Credit Report?
Losing possession of a car or home is a very stressful process, and most people would prefer not to have to go through it. And even once you go through the repossession process itself, you still have the added inconvenience of handling the ramifications that it will have on your credit report and rating. This is especially so if you fail to make the payments on time as a repossession can lead to a decrease of your credit score by up to 100 points or even more. It will be listed under the public records folder of your credit report and typically, it remains on your credit report for about 7 years from the time of occurrence.
If repossession does occur, you cannot reverse it, but some things can be done to begin to rebuild a credit score. That is why it is generally very hard, but not impossible, to have a repossession removed from a credit report. It will entail making a file to the credit reporting bureaus to show that the repossession was reported wrongfully or that they have legal grounds to remove it. If you think any of these applies to you, it is essential to make your move immediately following the repossession to maximize your chances of disputing it effectively.
The first step is obtaining copies of your credit reports from the three main national credit reporting agencies: These include Equifax, Experian, and Trans Union. You need to review each report carefully to make sure that all the details about the repossession are being reported accurately: the date; the amount of the auto loan or mortgage at the time when the consumer obtained the loan; the name, address, and contact information of the creditor/lender. Any discrepancy that you will notice in the repossession report, for instance, an incorrect date or loan amount, makes it easy to begin the dispute process with the credit bureaus.
In the repossession case, you will need to write letters to each bureau that seems to show the repossession. Attached are the documents that can substantiate my argument as to why the information is wrong or partially wrong. The agencies are equally mandated by law to within 30 days investigate your dispute. At times, this entails them contacting the creditor, which reported the repossession, to affirm the account details. In cases where the error cannot be validated by your creditor or where the agency establishes that the repossession was reported unfairly, it will be corrected in your credit reports.
If the credit bureaus do verify that the information about the repossession is correct then you have an option of filing a 100-word dispute statement that will be included in your credit report. This can help you justify why it came to that and get back the car through repossession. Reading your statement about the events that took place that led to the repossession may assist in ensuring that you have a better chance of getting credit approval in the future. A statement like: “We repossession your car/tractor because you failed to pay the debt” will remain in the credit reports as long as the negative repossession does.
Otherwise, you may have a reason to appeal the repossession if you think that some legal procedures of repossessing your house or car were not conducted by the state legislation of the USA. If your car was repossessed from your backyard or your compound without being informed or given a court summons, then you have grounds to sue for unlawful repossession. To do so in a legal setting, one must provide evidence that they were indeed discriminated against. If a judge rules in your favor, the credit bureaus will be required to remove the repo information from your credit files.
It should be considered the time as well as legal costs that may be incurred in trying to litigate the issue in the court compared to other ways of repairing one’s credit over time. Also worth mentioning is that a creditor could still contest such a court order to the credit bureaus - as it does not excuse or remove the obligation for the defaulted loan. While it is possible to win a case in court, it is also possible to find yourself still in the process of negotiating with your previous lender as well as credit report checking after the trial session. This is because they are entitled to specific information regarding the repossession and the client must monitor what information the credit bureaus are reporting. Then use the dispute process right away every time there are errors and/or omissions that might have to be resolved depending on the real repossession activity. The chance of having the wrong details corrected or deleted relies heavily on the follow-up, and this should be done regularly. Although it remains rare, some of the consumers who attempted to use these persistent dispute tactics have managed to have the unfair car repossession entries removed from their credit reports. Therefore, with a disciplined approach, keeping detailed records, and the ability to wait, it is likely that credit damage from repossession can be overcome.
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